Nifty extends gain for second consecutive session

The fifty stock index -- Nifty -- continued its northward journey for second consecutive day on Tuesday and finished the volatile day of trade with a paltry gain of 14 points or 0.18%, as investors turned cautious ahead of the Reserve Bank of India’s fifth bimonthly money policy review, which will be unveiled on Wednesday. Emergence of profit-booking by speculators at improved levels in the final hour of trading dragged the key index down from the day’s high by wiping out the session’s big gains. Trading sentiments remained buoyed for most part of the session on hopes of an easing of the monetary policy and positive global cues. Also, Indian rupee appreciating 31 paise intra-day against the dollar, gaining past the 68 mark to 67.90, added to the optimistic sentiments.

Investors were seen piling up positions in Realty, Oil & Gas and Metal stocks, while sharp selling was witnessed in FMCG, Consumer Durables and Auto sector stocks. The top gainers from the F&O segment were Torrent Power, BEML and Tata Chemicals. On the other hand, the top losers were Sun TV Network, Crompton Greaves and Dabur India. In the index option segment, maximum OI continues to be seen in the 8000-8600 calls and 7500-8000 puts indicating this is the trading range expectation. In today's session, the 8200, 8300 and 8500 Call strikes saw addition of 2.84, 3.57 and 2.82 lakh shares, respectively. On the other hand, 8200 and 7700 Put strikes saw addition of 7.33 and 1.80 lakh shares, respectively.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 1.06% and reached 17.10. The 50-share Nifty was up by 14.40 points or 0.18% to settle at 8,143.15.

Nifty December 2016 futures closed at 8169.05 on Tuesday at a premium of 25.90 points over spot closing of 8143.15, while Nifty January 2017 futures ended at 8202.25 at a premium of 59.10 points over spot closing. Nifty December futures saw a contraction of 0.02 million (mn) units, taking the total outstanding open interest (OI) to 15.55 million (mn) units. The near month derivatives contract will expire on December 29, 2016.

From the most active contracts, Sun TV December 2016 futures traded at a premium of 2.50 points at 476.60 compared with spot closing of 474.10. The numbers of contracts traded were 13,860.

SBI December 2016 futures traded at a premium of 1.35 points at 260.45 compared with spot closing of 259.10. The numbers of contracts traded were 11,760.

Yes Bank December 2016 futures traded at a premium of 1.35 points at 1194.50 compared with spot closing of 1193.15. The numbers of contracts traded were 9,307.

Maruti December 2016 futures traded at a premium of 24.10 points at 5159.30 compared with spot closing of 5135.20. The numbers of contracts traded were 9,264.

Axis Bank December 2016 futures traded at a premium of 2.25 points at 458.20 compared with spot closing of 455.95. The numbers of contracts traded were 8,857.  

Among Nifty calls, 8300 SP from the December month expiry was the most active call with an addition of 0.35 million open interests. Among Nifty puts, 8100 SP from the December month expiry was the most active put with a contraction of 0.37 million open interests. The maximum OI outstanding for Calls was at 8300 SP (4.99 mn) and that for Puts was at 8000 SP (7.58 mn). The respective Support and Resistance levels of Nifty are: Resistance 8170.95 --- Pivot Point 8150.90 --- Support --- 8123.10.             

The Nifty Put Call Ratio (PCR) finally stood at 1.12 for December month contract. The top five scrips with highest PCR on OI were Hero MotoCorp (1.60), Eicher Motors (1.49), Ajanta Pharma (1.28), Ultratech Cement (1.08) and Bajaj-Auto (1.04).   

Among most active underlying, Sun TV Network  witnessed an addition of 0.21 million of Open Interest in the December month futures contract, followed by Maruti Suzuki India witnessing a contraction of 0.07 million of Open Interest in the December month contract, State Bank of India witnessed a contraction of 1.94 million of Open Interest in the December month contract, Yes Bank witnessed a contraction of 0.18 million of Open Interest in the December month contract and Tata Steel witnessed an addition of 0.69 million units of Open Interest in the November month's future contract.