Nifty settles in green; reclaims 10,300 mark

Key Indian benchmark Nifty ended in green with gains of over half a percent on Friday, reclaiming its psychological level of 10,300 mark. The index performed in high spirit throughout the day as exit polls indicated a clear majority win for Bharatiya Janata Party (BJP) in both Gujarat as well as Himachal Pradesh assembly elections. Traders remained optimistic as the International Monetary Fund (IMF), which is slated to come out with an update of its projections of India’s growth rate along with the rest of the world in January, sees benefits in the medium-term from the demonetisation exercise which India carried out about a year ago. The market also got some boost with the private report stating that India's economic growth has bottomed out and the GDP growth will recover further to 7 per cent over the next few quarters but it is likely to take few years to return to 7.5 per cent above levels. Separately, Finance Minister Arun Jaitley has said that the strengthening of public sector banks (PSBs), infrastructure and housing will be top priorities for government next year. Besides, investors got some support after global rating agency Moody’s kept a stable outlook for non-financial corporate in the country, except for telcos, on which it has a negative outlook for 2018. It said that stable outlook is underpinned by the expectation that GDP growth of around 7.6% will result in higher sales volumes. 

All the sectoral indices ended in green on the NSE except PSU Banking. The top gainers from the F&O segment were Gujarat State Fertilizers & Chemicals, Vedanta and Escorts. On the other hand, the top losers were Tech Mahindra, Cipla and Tata Communications. In the index option segment, maximum OI continues to be seen in the 10200-10800 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 8.94% and reached 14.94. The 50-share Nifty was up by 81.15 points or 0.79% to settle at 10,333.25.

Nifty December 2017 futures closed at 10359.50 on Friday, at a premium of 26.25 points over spot closing of 10333.25, while Nifty January 2018 futures ended at 10392.10, at a premium of 58.85 points over spot closing. Nifty December futures saw a contraction of 1.19 million (mn) units, taking the total outstanding open interest (OI) to 19.74 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 discount of 0.55 points at 298.30 compared with spot closing of 298.85. The numbers of contracts traded were 23,042.

HDFC Bank December 2017 futures traded at a premium of 5.70 points at 1876.70 compared with spot closing of 1871.00. The numbers of contracts traded were 17,665.

Yes Bank December 2017 futures traded at a premium of 0.15 points at 316.20 compared with spot closing of 316.05. The numbers of contracts traded were 16,972.

Reliance Industries December 2017 futures traded at a premium of 2.95 points at 923.95 compared with spot closing of 921.00. The numbers of contracts traded were 13,018.
 
State Bank of India December 2017 futures traded at a premium of 1.35 points at 313.70 compared with spot closing of 312.35. The numbers of contracts traded were 11,731.
Among Nifty calls, 10500 SP from the December month expiry was the most active call with an addition of 0.40 million open interests. Among Nifty puts, 10300 SP from the December month expiry was the most active put with an addition of 1.21 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (7.35 mn) and that for Puts was at 10000 SP (9.19 mn). The respective Support and Resistance levels of Nifty are: Resistance 10364.35--- Pivot Point 10342.00--- Support --- 10310.90.

The Nifty Put Call Ratio (PCR) finally stood at 1.01 for December month contract. The top five scrips with highest PCR on OI were Godrej Consumer Products (2.64), Marico (1.44), JSW Energy (1.32), DLF (1.12) and Infosys (1.09).

Among most active underlying, Reliance Industries witnessed an addition of 0.73 million units of Open Interest in the December month futures contract, followed by HDFC Bank witnessing  a contraction of 0.30 million units of Open Interest in the December month contract, State Bank of India witnessed an addition of 2.18 million units of Open Interest in the December month contract, Vedanta witnessed a contraction of  1.20 million units of Open Interest in the December month contract and Maruti Suzuki India witnessed  an addition of 0.06 million units of Open Interest in the December month future contract.