Nifty ends at new closing high

Key Indian Benchmarks Nifty ended at new closing high on Tuesday, on firm European markets along with BJP's win in key state elections. After making a firm start, the index traded with traction throughout the day, taking support from Finance Ministry’s year end review report which stated that overall fundamentals of the economy remained strong in the current financial year, on the back of firm macroeconomic indicators, improvement in World Bank's ease of doing business ranking and sovereign rating upgrade by Moody's. The report also noted that manufacturing, electricity, gas, water supply & other utility services and trade, hotels, transport & communication and services related to broadcasting sectors registered growth of over 6.0 percent in Q2 of 2017-18 over Q2 of 2016-17. Some support also came with the private report which sees brighter growth prospects for India by FY20 and beyond. In last hour of trade, the Nifty extended its gains to end at fresh closing high, backed by heavy buying. Meanwhile, global rating agency Moody's report said that capital raising by a number of public sector banks (PSBs), including PNB and UBI, is credit positive because it will help improve their loss-absorbing buffers. Separately, Moody’s and its Indian arm ICRA in a joint report have kept a stable outlook for the Indian power sector over the next 12-18 months, reflecting their expectation of stable industry conditions and government policy initiatives.

All the sectoral indices ended in green on the NSE except IT. The top gainers from the F&O segment were Jain Irrigation Systems, Reliance Communications and Maruti Suzuki India. On the other hand, the top losers were Union Bank of India, HCL Technologies and Godfrey Phillips India. In the index option segment, maximum OI continues to be seen in the 10400-11000 calls and 9800-10400 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 7.07% and reached 12.18. The 50-share Nifty was up by 74.45 points or 0.72% to settle at 10,463.20.

Nifty December 2017 futures closed at 10470.95 on Tuesday, at a premium of 7.75 points over spot closing of 10463.20, while Nifty January 2018 futures ended at 10503.15, at a premium of 39.95 points over spot closing. Nifty December futures saw an addition of 0.08 million (mn) units, taking the total outstanding open interest (OI) to 19.54 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 27.40 point at 9818.60 compared with spot closing of 9846.00. The numbers of contracts traded were 38,115.

Tata Motors December 2017 futures traded at a discount of 0.15 points at 420.40 compared with spot closing of 420.55. The numbers of contracts traded were 19,046.

Vedanta December 2017 futures traded at a premium of 0.55 points at 317.45 compared with spot closing of 316.90. The numbers of contracts traded were 16,789.

Mahindra & Mahindra December 2017 futures traded at a premium of 3.45 points at 1553.85 compared with spot closing of 1550.40. The numbers of contracts traded were 13,028.
 
State Bank of India December 2017 futures traded at a premium of 0.05 points at 320.05 compared with spot closing of 320.00. The numbers of contracts traded were 10,363.

Among Nifty calls, 10500 SP from the December month expiry was the most active call with a contraction of 0.99 million open interests. Among Nifty puts, 10400 SP from the December month expiry was the most active put with an addition of 1.93 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (6.25 mn) and that for Puts was at 10000 SP (8.29 mn). The respective Support and Resistance levels of Nifty are: Resistance 10488.27--- Pivot Point 10447.13--- Support --- 10422.07.

The Nifty Put Call Ratio (PCR) finally stood at 1.18 for December month contract. The top five scrips with highest PCR on OI were Godrej Consumer Products (2.51), Maruti Suzuki India (1.64), Marico (1.51), IRB Infrastructure Developers (1.36) and JSW Energy (1.33).

Among most active underlying, Maruti Suzuki India witnessed an addition of 0.07 million units of Open Interest in the December month futures contract, followed by Reliance Industries witnessing  an addition of 0.02 million units of Open Interest in the December month contract, Tata Motors witnessed a contraction of 0.55 million units of Open Interest in the December month contract, State Bank of India witnessed a contraction of  2.45 million units of Open Interest in the December month contract and Tata Global Beverages witnessed  an addition of 0.63 million units of Open Interest in the December month future contract.