Nifty ends at fresh record closing high

The equity benchmark Nifty settled at fresh record closing high level on Friday, with gains of half a per cent. The index traded jubilantly throughout the day, with traders taking some support from Chairman of the Economic Advisory Council to the Prime Minister Bibek Debroy's statement that India is expected to be a $ 6.5-7 trillion economy by 2030, and at the current exchange rate it would touch $ 10 trillion by 2035-40. Some optimism also came with the ICRA's monthly review report which stated that the growth in the index of industrial production (IIP) is expected to rebound in November after hitting a three-month low of 2.2% in October this year, backed by improvement in major indicators, such as auto production, non-oil merchandise exports and rail freight growth. In the last leg of trade, Nifty touched its crucial 10,500 mark, but ended tad below that mark. Still, it managed to end at record high as traders also took some encouragement with Commerce and Industry Minister Suresh Prabhu's statement that the government is committed to increasing India's contribution to global trade in a 'very significant' manner.

All the sectoral indices ended in green on the NSE except Metal. The top gainers from the F&O segment were Reliance Naval and Engineering, Engineers India and Hindustan Construction Company. On the other hand, the top losers were Reliance Communications, IFCI and Can Fin Homes.  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 4.12% and reached 11.58. The 50-share Nifty was up by 52.70 points or 0.50% to settle at 10,493.00.

Nifty December 2017 futures closed at 10505.45 on Friday, at a premium of 12.45 points over spot closing of 10493.00, while Nifty January 2018 futures ended at 10545.00, at a premium of 52 points over spot closing. Nifty December futures saw a contraction of 0.43 million (mn) units, taking the total outstanding open interest (OI) to 17.73 mn units. The near month derivatives contract will expire on December 28, 2017.

From the most active contracts, Reliance Infrastructure December 2017 futures traded at a premium of 2.10 points at 528.95 compared with spot closing of 526.85. The numbers of contracts traded were 27,388.

Reliance Capital December 2017 futures traded at a premium of 3.30 points at 486.30 compared with spot closing of 483.00. The numbers of contracts traded were 24,684.

Infosys December 2017 futures traded at a premium of 1.95 points at 1039.80 compared with spot closing of 1037.85. The numbers of contracts traded were 21,456.

Maruti Suzuki India December 2017 futures traded at a premium of 33.20 points at 9733.20 compared with spot closing of 9700.00. The numbers of contracts traded were 19,920.
 
State Bank of India December 2017 futures traded at a premium of 1.55 points at 320.65 compared with spot closing of 319.10. The numbers of contracts traded were 16,003.

Among Nifty calls, 10500 SP from the December month expiry was the most active call with a contraction of 0.89 million open interests. Among Nifty puts, 10400 SP from the December month expiry was the most active put with an addition of 0.36 million open interests.  The maximum OI outstanding for Calls was at 10500 SP (5.64 mn) and that for Puts was at 10000 SP (7.51 mn). The respective Support and Resistance levels of Nifty are: Resistance 10513.32--- Pivot Point 10480.78--- Support --- 10460.47.

The Nifty Put Call Ratio (PCR) finally stood at 1.42 for December month contract. The top five scrips with highest PCR on OI were Godrej Consumer Products (2.91), Marico (1.58), Hindalco Industries (1.57), IRB Infrastructure Developers (1.50) and DLF (1.50).

Among most active underlying, Maruti Suzuki India witnessed a contraction of 0.03 million units of Open Interest in the December month futures contract, followed by State Bank of India witnessing  a contraction of 2.16 million units of Open Interest in the December month contract, Reliance Industries witnessed a contraction of 4.04 million units of Open Interest in the December month contract, Reliance Infrastructure  witnessed a contraction of  1.07 million units of Open Interest in the December month contract and Infosys witnessed  a contraction of 2.96 million units of Open Interest in the December month future contract.