Nifty ends with half a percent gain; Settles at 10,791 mark

Nifty finished the volatile day of trade with a gain of half a percent after inflation eased sharply in November and the new Reserve Bank of India (RBI) Governor Shaktikanta Das move to open up a dialogue with lenders pushed up banking counters. Sentiments remained upbeat since beginning of the trade, as the Central Statistics Office (CSO) in its latest data showed that India’s industrial output grew at an 11-month high of 8.1% in October mainly on the back of mining, power and manufacturing sectors coupled with higher offtake of capital as well as consumer durable goods. Industrial production measured in terms of Index of Industrial Production (IIP) grew 1.8% in October 2017. The previous high IIP growth rate was recorded in November last year at 8.5%. Market gave up some of their gains in last leg of trade with report that as many as 358 infrastructure projects worth Rs 150 or above, entailing a total investment of Rs 3.53 lakh crore, reported cost overruns as on August 1, 2018. However, markets managed to end with a gain of half a percent as traders took support with a report highlighting that RBI is likely to cut rate after CPI inflation eased to 2.33 percent in November 2018.

All the sectoral indices ended in green on the NSE except Metal. The top gainers from the F&O segment were PC Jeweller, Kaveri Seed Company and Ujjivan Financial Services. On the other hand, the top losers were Yes Bank, Jet Airways (India) and MindTree. In the index option segment, maximum OI continues to be seen in the 10,900-11,200 calls and 9900 -10,100 puts indicating this is the trading range expectation.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility decreased by 1.64% and reached 15.55. The 50-share Nifty was up by 53.95 points 0.50% to settle at 10,791.55.

Nifty December 2018 futures closed at 10824.95 on Thursday, at a premium of 33.40 points over spot closing of 10791.55, while Nifty January 2019 futures ended at 10870.80, at a premium of 79.25 points over spot closing. Nifty December futures saw an addition of 0.04 million (mn) units, taking the total outstanding open interest (OI) to 21.56 mn units. The near month derivatives contract will expire on December 27, 2018.

From the most active contracts, Yes Bank December 2018 futures traded at a premium of 0.25 points at 175.05 compared with spot closing of 174.80. The numbers of contracts traded were 64,378.

Indiabulls Housing Finance December 2018 futures traded at a premium of 3.30 points at 777.30 compared with spot closing of 774.00. The numbers of contracts traded were 39,758.

Reliance Industries December 2018 futures traded at a premium of 6.40 points at 1112.15 compared with spot closing of 1105.75. The numbers of contracts traded were 31,165.

Sun Pharmaceutical Industries December 2018 futures traded at a premium of 1.00 points at 423.00 compared with spot closing of 422.00. The numbers of contracts traded were 22,028.

State Bank of India December 2018 futures traded at a premium of 0.45 points at 289.30 compared with spot closing of 288.85. The numbers of contracts traded were 19,564.

Among Nifty calls, 11000 SP from the December month expiry was the most active call with an addition of 0.59 million open interests. Among Nifty puts, 10,800 SP from the December month expiry was the most active put with an addition of 1.30 million open interests. The maximum OI outstanding for Calls was at 11,000 SP (4.94mn) and that for Puts was at 10,000 SP (5.18mn). The respective Support and Resistance levels of Nifty are: Resistance 10,836.93 ---- Pivot Point 10,793.22 --- Support --- 10,747.83.

The Nifty Put Call Ratio (PCR) finally stood at 1.27 for December month contract. The top five scrips with highest PCR on OI were Berger Paints India (2.18), Hero Motocorp (1.81), V-Guard Industries (1.79), Godrej Consumer Products (1.47) and Adani Power (1.44).

Among most active underlying, Reliance Industries witnessed an addition of 0.62 million units of Open Interest in the December month futures contract, followed by Yes Bank witnessing a contraction of 2.42 million units of Open Interest in the December month contract, State Bank of India witnessed a contraction of 2.77 million units of Open Interest in the December month contract, ICICI Bank witnessed a contraction of 1.20 million units of Open Interest in the December month contract and Maruti Suzuki India witnessed a contraction of 0.01 million units of Open Interest in the December month future contract.