Nifty ends higher for second straight session

Indian equity benchmark Nifty ended in green for the second straight session on last trading day of the week, reclaiming its crucial psychological level of 10,250. The index rallied throughout the day, supported by firm global cues. The investors got some encouragement with the Finance Ministry’s statement that the provisions of the Financial Resolution and Deposit Insurance Bill, 2017 (FRDI Bill), under consideration of a joint parliamentary committee, are aimed at protecting the interests of depositors and provides more protection to them compared to existing provisions. Sentiments remained up-beat with a private report stating that the Indian economy is expected to witness cyclical growth recovery, with real GDP growth likely to accelerate from 6.4 percent this year to 7.5 percent in 2018 and further to 7.7 percent in 2019. Some support also came after loan growth of banks hit a three-year high in November, boosting early signs of revival in demand after credit offtake had touched multi-year low in the past year. Besides, SpiceJet and Indigo ended higher with Union Minister of State for Civil Aviation Jayant Sinha’s statement that India's aviation market would overtake the United States (US) and China, by hitting a billion passenger trips per year in the next 10 to 15 years, however, Jet Airways tumbled on reporting 91% fall in Q2 net profit.

All the sectoral indices ended in green on the NSE except Media and PSU Bank. The top gainers from the F&O segment were Ajanta Pharma, Balkrishna Industries and Jaiprakash Associates. On the other hand, the top losers were Jet Airways (India), Bharti Infratel and Petronet LNG. 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 4.20% and reached 13.67. The 50-share Nifty was up by 98.95 points or 0.97% to settle at 10,265.65.

Nifty December 2017 futures closed at 10291.65 on Friday, at a premium of 26 points over spot closing of 10265.65, while Nifty January 2018 futures ended at 10323.70, at a premium of 58.05 points over spot closing. Nifty December futures saw a contraction of 0.52 million (mn) units, taking the total outstanding open interest (OI) to 20.86 mn units. The near month derivatives contract will expire on December 28, 2017.

From the most active contracts, Tata Steel December 2017 futures traded at a premium of 5.60 point at 699.65 compared with spot closing of 694.05. The numbers of contracts traded were 25,124.

Maruti Suzuki India December 2017 futures traded at a discount of 0.80 points at 9064.10 compared with spot closing of 9064.90. The numbers of contracts traded were 22,342.

Tata Motors December 2017 futures traded at a premium of 2.10 points at 412.95 compared with spot closing of 410.85. The numbers of contracts traded were 19,873.

Vedanta December 2017 futures traded at a premium of 2.15 points at 292.35 compared with spot closing of 290.20. The numbers of contracts traded were 15,138.
 
HDFC Bank December 2017 futures traded at a discount of 3.55 points at 1838.70 compared with spot closing of 1842.25. The numbers of contracts traded were 12,544.

Among Nifty calls, 10300 SP from the December month expiry was the most active call with a contraction of 0.06 million open interests. Among Nifty puts, 10200 SP from the December month expiry was the most active put with an addition of 1.20 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (5.62 mn) and that for Puts was at 10000 SP (8.68 mn). The respective Support and Resistance levels of Nifty are: Resistance 10292.58--- Pivot Point 10243.92--- Support --- 10216.98.

The Nifty Put Call Ratio (PCR) finally stood at 0.94 for December month contract. The top five scrips with highest PCR on OI were Godrej Consumer Products (2.72), Marico (1.71), DLF (1.47), Maruti Suzuki India (1.35) and Berger Paints India (1.28).

Among most active underlying, Maruti Suzuki India witnessed an addition of 0.10 million units of Open Interest in the December month futures contract, followed by Tata Steel witnessing  a contraction of 0.20 million units of Open Interest in the December month contract, Reliance Industries witnessed an addition of 1.49 million units of Open Interest in the December month contract, Tata Motors witnessed an addition of  0.37 million units of Open Interest in the December month contract and Bharti Airtel witnessed  an addition of 0.55 million units of Open Interest in the December month future contract.