Nifty ends slightly in green

Indian local benchmark—Nifty—ended the session slightly in green on Monday, shrugging off weak trend in global stocks as trading sentiments improved with report that exports jumped for the fourth month to 5.7 per cent in December to $23.8 billion, the highest since March 2015. As many as 18 of the 30 exporting sectors registered growth. Some support came with Moody’s Investors Service and its Indian affiliate ICRA report that India will remain one of the fastest growing major economies globally in 2017, although GDP growth will moderate in the first half of the year, as the economy adjusts after demonetization. Moody’s also believes that the government will likely achieve its fiscal deficit target of 3.5% of GDP for the current fiscal year ending March 31, 2017. However, investors remained cautious with the currency exchange, the upcoming Union Budget, General Anti-Avoidance Rule (GAAR), impending state elections, and flux in US policy.

Traders were seen piling up positions in PSU, Realty and Metal stocks, while selling was witnessed in IT, FMCG and Pharma stocks. The top gainers from the F&O segment were Dewan Housing Finance Corporation, Indo Count Industries and DLF. On the other hand, the top losers were HCL Technologies, DCB Bank and TV18 Broadcast. In the index option segment, maximum OI continues to be seen in the 8100-8700 calls and 7500-8400 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 4.74% and reached 15.06. The 50-share Nifty was up by 12.45 points or 0.15% to settle at 8,412.80.

Nifty January 2017 futures closed at 8431.70 on Monday at a premium of 18.90 points over spot closing of 8412.80, while Nifty February 2017 futures ended at 8455.15 at a premium of 42.35 points over spot closing. Nifty January futures saw an addition of 0.22 million (mn) units, taking the total outstanding open interest (OI) to 20.13 million (mn) units. The near month derivatives contract will expire on January 25, 2017.

From the most active contracts, LIC Housing Finance January 2017 futures traded at a premium of 0.90 points at 542.85 compared with spot closing of 541.95. The numbers of contracts traded were 17,953.

Dewan Housing Finance Corporation January 2017 futures traded at a discount of 0.05 points at 288.95 compared with spot closing of 289.00. The numbers of contracts traded were 16,581.

Infosys January 2017 futures traded at a premium of 0.45 points at 957.90 compared with spot closing of 957.45. The numbers of contracts traded were 14,900.

State Bank of India January 2017 futures traded at a discount of 0.50 points at 255.90 compared with spot closing of 256.40. The numbers of contracts traded were 13,964.

Tata Steel January 2017 futures traded at a discount of 0.90 points at 458.60 compared with spot closing of 459.50. The numbers of contracts traded were 13,930.

Among Nifty calls, 8500 SP from the January month expiry was the most active call with a contraction of 0.25 million open interests. Among Nifty puts, 8400 SP from the january month expiry was the most active put with an addition of 0.69 million open interests. The maximum OI outstanding for Calls was at 8400 SP (4.99 mn) and that for Puts was at 8000 SP (6.58 mn). The respective Support and Resistance levels of Nifty are: Resistance 8434.87--- Pivot Point 8404.63--- Support --- 8382.57.

The Nifty Put Call Ratio (PCR) finally stood at 1.47 for January month contract. The top five scrips with highest PCR on OI were Marico (2.65), Dabur India (2.32), Pidilite Industries (1.96), Maruti Suzuki India (1.82) and Ajanta Pharma (1.61).

Among most active underlying, Tata Steel witnessed an addition of 0.65 million units of Open Interest in the January month futures contract, followed by Dewan Housing Finance Corporation witnessing an addition of 1.53 million units  of Open Interest in the January month contract, Infosys witnessed a contraction of 0.68  million units of Open Interest in the January month contract, State Bank of India witnessed a contraction of 1.91 million units of Open Interest in the January month future contract and LIC Housing Finance witnessed a contraction of 0.23 million units of Open Interest in the January month future contract.