Nifty ends last session of 2016 above 8150

The Indian benchmark index -- Nifty-- traded jubilantly on Friday and finished the last trading session of year 2016 on strong note with widespread gains as investors sentiments were buoyed by rupee appreciation. The beginning of January series in the futures and options (F&O) space accelerated buying by participants, which supported the upside. Market traded on a positive note in early deals with Finance Minister Arun Jaitley’s statement that the impact of demonetisation is clearly visible with tax collection figures seeing double-digit growth. He had said that there has been a 26.2 percent increase in central indirect tax collection till November 30, while till December 19, direct tax collection increase has been to the extent of 14.4 percent against a growth rate of only 8.3 percent previous year. Sentiments also got support with Prime Minister Narendra Modi's statement that the decision to scrap high-value bank notes will give the economy a further boost, and would provide long-term benefits, including forcing the country's vast shadow economy into the open.

The buying was so fierce that not a single sectoral index on the NSE ended with losses; FMCG, Pharma, IT and Realty stocks ended among the top gainers. The top gainers from the F&O segment were Jaiprakash Associates, Housing Development and Infrastructure Limited and Arvind. On the other hand, the top losers were Engineers India, IDFC and IFCI. In the index option segment, maximum OI continues to be seen in the 8100-8500 calls and 7800-8100 puts indicating this is the trading range expectation.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 1.19% and reached 15.46. The 50-share Nifty was up by 82 points or 1.01% to settle at 8,185.80.

Nifty January 2017 futures closed at 8187.40 on Friday at a premium of 1.60 points over spot closing of 8185.80, while Nifty February 2017 futures ended at 8208.45 at a premium of 22.65 points over spot closing. Nifty January futures saw an addition of 0.96 million (mn) units, taking the total outstanding open interest (OI) to 17.11 million (mn) units. The near month derivatives contract will expire on January 25, 2017.

From the most active contracts, Bharat Financial Inclusion January 2017 futures traded at a premium of 0.30 points at 589.45 compared with spot closing of 589.15. The numbers of contracts traded were 17,383.

State Bank of India January 2017 futures traded at a discount of 0.40 points at 249.90 compared with spot closing of 250.30. The numbers of contracts traded were 11,074.

Sun Pharmaceuticals Industries January 2017 futures traded flat at a premium of 2.70 points at 631.50 compared with spot closing of 628.80. The numbers of contracts traded were 9,862.

ICICI Bank January 2017 futures traded flat at a premium of 0.85 points at 255.90 compared with spot closing of 255.05. The numbers of contracts traded were 9,574.

Reliance Industries January 2017 futures traded flat at a premium of 3.00 points at 1083.70 compared with spot closing of 1,080.70. The numbers of contracts traded were 8,409.

Among Nifty calls, 8200 SP from the January month expiry was the most active call with an addition of 0.51  million open interests. Among Nifty puts, 8000 SP from the january month expiry was the most active put with an addition of 1.33 million open interests. The maximum OI outstanding for Calls was at 8200 SP (4.27 mn) and that for Puts was at 8000 SP (5.76 mn). The respective Support and Resistance levels of Nifty are: Resistance 8216.95 --- Pivot Point 8165.85 --- Support --- 8134.70.

The Nifty Put Call Ratio (PCR) finally stood at 1.17 for January month contract. The top five scrips with highest PCR on OI were Ajanta Pharma (2.50), Apollo Hospitals Enterprise (2.25), TVS Motor (1.95), Hero Motocorp (1.74) and Amara Raja Batteries (1.69).

Among most active underlying, State Bank of India witnessed a contraction of 0.14 million of Open Interest in the January month futures contract, followed by Bharat Financial Inclusion witnessing a contraction of 0.05 million of Open Interest in the January month contract, Reliance Industries witnessed an addition of 0.06  million of Open Interest in the January month contract, Maruti Suzuki India witnessed an addition of 0.02  million units of Open Interest in the January month future contract and Yes Bank witnessed an addition of 0.03  million units of Open Interest in the January month future contract.