Nifty ends in green; surpasses 10,150 mark

Key Indian benchmark Nifty ended in green with gain of over a percent on Thursday, amid firm European markets. After making a positive start, the index continued to move in northward direction till the end, as the Reserve Bank retained economic growth projection for 2017-18 at 6.7% saying that the risks are evenly balanced. Traders also took some encouragement with Former Reserve Bank of India (RBI) Governor YV Reddy’s statement that amid uncertainties in the global economic order, a sense of optimism about the future is more in India than in other parts of the world. Some support also came with International Energy Agency’s (IEA) latest report stating that India is among bright spots in the global economy and is emerging as a major driving force in global energy trends, with all modern fuels and technologies playing a part. Adding to the gains, the share of foreign portfolio investments (FPI) in domestic capital markets through participatory notes (P-notes) surged to Rs 1.31 lakh crore at the end of October. Of the total, P-note holdings in equities at October-end were at Rs 90,161 crore, while in debts and derivatives were at Rs 30,468 crore and Rs 10,378 crore respectively.

All the sectoral indices ended in green on the NSE. The top gainers from the F&O segment were GAIL (India), Bharti Airtel and TV18 Broadcast. On the other hand, the top losers were Jubilant Foodworks, IRB Infrastructure Developers and Hexaware Technologies. In the index option segment, maximum OI continues to be seen in the 10200-10700 calls and 9700-10300 puts indicating this is the trading range expectation.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 5.40% and reached 14.27. The 50-share Nifty was up by 122.60 points or 1.22% to settle at 10,166.70.

Nifty December 2017 futures closed at 10202.95 on Thursday, at a premium of 36.25 points over spot closing of 10166.70, while Nifty January 2018 futures ended at 10231.10, at a premium of 64.40 points over spot closing. Nifty December futures saw a contraction of 0.11 million (mn) units, taking the total outstanding open interest (OI) to 20.34 mn units. The near month derivatives contract will expire on December 28, 2017.

From the most active contracts, Maruti Suzuki India December 2017 futures traded at a discount of 6.30 point at 8893.70 compared with spot closing of 8900.00. The numbers of contracts traded were 19,723.

IRB Infrastructure Developers December 2017 futures traded at a premium of 0.10 points at 205.55 compared with spot closing of 205.45. The numbers of contracts traded were 13,594.

DLF December 2017 futures traded at a premium of 1.80 points at 240.60 compared with spot closing of 238.80. The numbers of contracts traded were 12,581.

Tata Motors December 2017 futures traded at a premium of 1.80 points at 404.35 compared with spot closing of 402.55. The numbers of contracts traded were 11,995.
 
Tata Steel December 2017 futures traded at a premium of 1.65 points at 689.15 compared with spot closing of 687.50. The numbers of contracts traded were 11,777.

Among Nifty calls, 10300 SP from the December month expiry was the most active call with a contraction of 0.52 million open interests. Among Nifty puts, 10000 SP from the December month expiry was the most active put with an addition of 0.53 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (6.19 mn) and that for Puts was at 10000 SP (8.59 mn). The respective Support and Resistance levels of Nifty are: Resistance 10212.27--- Pivot Point 10137.08--- Support --- 10091.52.

The Nifty Put Call Ratio (PCR) finally stood at 0.87 for December month contract. The top five scrips with highest PCR on OI were Berger Paints India (3.58), Marico (2.43), Godrej Consumer Products (2.27), DLF (1.44) and Maruti Suzuki India (1.40).

Among most active underlying, Maruti Suzuki India witnessed an addition of 0.12 million units of Open Interest in the December month futures contract, followed by Reliance Industries witnessing  an addition of 0.20 million units of Open Interest in the December month contract, DLF witnessed an addition of 2.86 million units of Open Interest in the December month contract, State Bank of India witnessed an addition of  0.96 million units of Open Interest in the December month contract and Bharti Airtel witnessed  an addition of 1.16 million units of Open Interest in the December month future contract.