Nifty ends near all time closing high level on last trading day of 2017

Key Indian benchmark Nifty ended the last trading day of 2017 on a positive note, logging gains of half a per cent, following firm Asian markets. The index traded on strong note throughout the session, with Securities and Exchange Board of India’s (SEBI) decision to relax entry norms for Foreign Portfolio Investors (FPIs) willing to invest in the Indian markets. Besides, SEBI would allow listing of security receipts issued by an asset reconstruction company (ARC) on stock exchange platform. Traders also took some encouragement with the private report stating that consumer confidence in India is likely to remain high over the next six months with a very optimistic outlook. Traders paid no heed towards the report stating that India reported a fiscal deficit of Rs 6.12 trillion ($95.77 billion) for April-November, or 112% of the budgeted target for the current fiscal year that ends in March. On the sectoral front, pharma stocks ended in green, amid credit rating agency, Crisil’s latest report that revenue of domestic pharma companies is seen growing at 9 per cent per annum over the next three fiscal years ending 2020, while Fast Moving Consumer Goods (FMCG) sector stocks also ended higher, amid report that the FMCG sector, which has been down in the dumps in the past two years with a tepid 4% revenue growth, is poised for a 'mean revision' with government shifting its focus towards boosting growth ahead of the next hustings.

All the sectoral indices ended in green on the NSE except Media and Metal. The top gainers from the F&O segment were Reliance Communications, Jaiprakash Associates and Reliance Power. On the other hand, the top losers were Infibeam Incorporation, Multi Commodity Exchange of India and Apollo Hospitals Enterprise.  In the index option segment, maximum OI continues to be seen in the 10400-11000 calls and 10000-10500 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 3.03% and reached 12.67. The 50-share Nifty was up by 52.80 points or 0.50% to settle at 10,530.70.

Nifty January 2018 futures closed at 10556.90 on Friday, at a premium of 26.20 points over spot closing of 10530.70, while Nifty February 2018 futures ended at 10577.40, at a premium of 46.70 points over spot closing. Nifty January futures saw an addition of 1.04 million (mn) units, taking the total outstanding open interest (OI) to 23.26 mn units. The near month derivatives contract will expire on January 25, 2018.

From the most active contracts, Infibeam Incorporation January 2018 futures traded at a premium of 0.05 points at 141.05 compared with spot closing of 141.00. The numbers of contracts traded were 33,176.

Reliance Capital January 2018 futures traded at a premium of 4.65 points at 582.65 compared with spot closing of 578.00. The numbers of contracts traded were 27,615.

Tata Motors January 2018 futures traded at a premium of 3.00 points at 434.20 compared with spot closing of 431.20. The numbers of contracts traded were 21,288.

Reliance Communications January 2018 futures traded at a discount of 1.00 points at 35.30 compared with spot closing of 36.30. The numbers of contracts traded were 15,754.

Axis Bank January 2018 futures traded at a premium of 2.55 points at 565.25 compared with spot closing of 562.70. The numbers of contracts traded were 15,083.

Among Nifty calls, 10600 SP from the January month expiry was the most active call with an addition of 0.33 million open interests. Among Nifty puts, 10500 SP from the January month expiry was the most active put with an addition of 1.13 million open interests.  The maximum OI outstanding for Calls was at 11000 SP (3.71mn) and that for Puts was at 10300 SP (4.58 mn). The respective Support and Resistance levels of Nifty are: Resistance 10550.05--- Pivot Point 10519.35--- Support --- 10500.00.

The Nifty Put Call Ratio (PCR) finally stood at 1.19 for January month contract. The top five scrips with highest PCR on OI were Godfrey Phillips India (3.00), Repco Home Finance (3.00), the Ramco Cements (1.70), SREI Infrastructure Finance (1.68) and Dalmia Bharat (1.30).

Among most active underlying, Reliance Communications  witnessed an addition of 24.38 million units of Open Interest in the January month futures contract, followed by Tata Motors witnessing  an addition of 3.03 million units of Open Interest in the January month contract, Maruti Suzuki India witnessed an addition of 0.06 million units of Open Interest in the January month contract, Reliance Industries witnessed an addition of  1.00 million units of Open Interest in the January month contract and Infibeam Incorporation witnessed  a contraction of 2.26 million units of Open Interest in the January month future contract.