Nifty end near day’s low ahead of IIP, CPI

Key Indian benchmark Nifty ended on a weak note on Tuesday near intraday low, tracking weak cues from Asian markets. The index traded on a lackluster note throughout the day, as traders remained on sidelines ahead of the key economic data -- October IIP and November CPI, which are scheduled to be released later in the day. Sentiments remained pessimistic with the report stating that India’s retail inflation likely breached the central bank’s 4.0 percent medium-term target in November after unseasonably heavy rains sent food prices soaring. Some anxiety also came with rising global crude oil prices which would stoke inflation and impact future interest rate decisions of the Reserve Bank of India (RBI). Traders failed to get any sense of relief with UN report stating that the growth rate of India's economy is projected to accelerate from this year's 6.7 percent to 7.2 percent next year and 7.4 percent in 2019 making it again the world's fastest-growing major economy, overcoming the slowdown from demonetization. The market participants also paid no heed towards Care Ratings’ latest quick survey report highlighting that on the whole majority are satisfied with the implementation of new tax regime. The survey found that there was no perceptible change in the cost of raw materials and demand for products & services post GST implementation.

All the sectoral indices ended in red on the NSE. The top gainers from the F&O segment were MindTree, Dr. Reddy's Laboratories and Oil & Natural Gas Corporation. On the other hand, the top losers were Fortis Healthcare, Hindustan Petroleum Corporation and United Breweries. 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 increased by 7.88% and reached 15.26. The 50-share Nifty was down by 82.10 points or 0.80% to settle at 10,240.15.

Nifty December 2017 futures closed at 10264.50 on Tuesday, at a premium of 24.35 points over spot closing of 10240.15, while Nifty January 2018 futures ended at 10299.20, at a premium of 59.05 points over spot closing. Nifty December futures saw an addition of 0.20 million (mn) units, taking the total outstanding open interest (OI) to 21.37 mn units. The near month derivatives contract will expire on December 28, 2017.

From the most active contracts, Vedanta December 2017 futures traded at a premium of 1.40 point at 293.60 compared with spot closing of 292.20. The numbers of contracts traded were 16,291.

Reliance Industries December 2017 futures traded at a premium of 2.15 points at 919.90 compared with spot closing of 917.75. The numbers of contracts traded were 15,149.

Tata Steel December 2017 futures traded at a premium of 2.30 points at 691.30 compared with spot closing of 689.00. The numbers of contracts traded were 15,131.

Tata Motors December 2017 futures traded at a premium of 1.70 points at 407.95 compared with spot closing of 406.25. The numbers of contracts traded were 13,702.
 
State Bank of India December 2017 futures traded at a premium of 0.90 points at 318.90 compared with spot closing of 318.00. The numbers of contracts traded were 13,290.

Among Nifty calls, 10400 SP from the December month expiry was the most active call with an addition of 0.31 million open interests. Among Nifty puts, 10200 SP from the December month expiry was the most active put with a contraction of 0.28 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (5.82 mn) and that for Puts was at 10000 SP (9.07 mn). The respective Support and Resistance levels of Nifty are: Resistance 10300.77--- Pivot Point 10265.48--- Support --- 10204.87.

The Nifty Put Call Ratio (PCR) finally stood at 0.99 for December month contract. The top five scrips with highest PCR on OI were Godrej Consumer Products (2.55), Marico (1.75), Maruti Suzuki India (1.28), DLF (1.28) and JSW Energy (1.27). 

Among most active underlying, Reliance Industries witnessed an addition of 0.52 million units of Open Interest in the December month futures contract, followed by Maruti Suzuki India witnessing  an addition of 0.01 million units of Open Interest in the December month contract, State Bank of India witnessed a contraction of 2.41 million units of Open Interest in the December month contract, Tata Steel  witnessed a contraction of  0.37 million units of Open Interest in the December month contract and Tata Motors witnessed  a contraction of 0.54 million units of Open Interest in the December month future contract.