Nifty ends tepid session on a flat note

CNX S&P Nifty ended a tepid session on a flat note on Monday as investors remained on sidelines ahead of the winter session of Parliament. However, global markets supported the local index to cut some losses in the late trade as most of the Asian markets ended on a positive note on Monday as investors were encouraged by an improving outlook for talks to resolve an imminent fiscal crunch in the United States. Moreover, European markets too were trading in the green at this point of time with investors’ sentiment remained upbeat after progress in the fiscal-cliff situation negotiations in the US over the weekend.

Back home, Indian market traded in the red for most part of the day’s trade as investors stayed on the sidelines awaiting political developments before making any move as the Winter Session of Parliament kicks off from Nov 22. Congress-led United Progressive Alliance (UPA) government could face its toughest challenge in Parliament during the winter session as the opposition parties is prepared to oppose FDI in retail and corruption-related issues. Moreover, jitters were also witnessed at D-street after reports suggested that amendments to the controversial law against tax avoidance through foreign investments, ‘GAAR’, were been finalized, which after going through Prime Minister Office (PMO) will be reflected in the amended Chapter 10A. But, in the last leg of trade market made some soothing recovery on the back of appreciation in Indian rupee. Rupee came below 55/$ mark on fresh selling of the American currency by banks amid persistent capital inflows into the equity market. Moreover, some amount of support came in from Auto space as stocks like Bajaj Auto, Maruti Suzuki and M&M witnessed traction on hopes that the demand pick up during the festival sales would boost sales growth during the current month. But, the recovery was not able to take the index into the green as up-side remain capped by Public sector oil marketing companies like BPCL, HPCL and IOC continued to drag markets lower after the oil ministry said that under-recovery on high speed diesel applicable for second fortnight of November effective November 16, 2012 remains high. Finally, Nifty ended near its pre-close mark with a slight cut of about three points.

Meanwhile, most of the sectoral indices on the NSE were settled in the red, CNX PSU Bank remained the major loser, down 0.78% followed by CNX Metal down 0.74% and CNX PSE down by 0.74% while CNX FMCG and CNX Auto rose 0.93% and 0.91% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged by 2.84% and reached 16.68.

The India VIX witnessed an addition of 2.84% at 16.68 as compared to its previous close of at 16.22 on Friday.

The 50-share S&P CNX Nifty lost 2.65 points or 0.05% to settle at 5,571.40.

Nifty November 2012 futures closed at 5589.65 on Monday at a premium of 18.25 points over spot closing of 5,571.40, while Nifty December 2012 futures ended at 5622.80, at a premium of 51.40 points over spot closing. Nifty November futures saw contraction of 0.29 million (mn) units taking the total outstanding open interest (OI) to 14.74 mn units. The near month November 2012 derivatives contract will expire on November 29, 2012.

From the most active contracts, JP Associates November 2012 futures were trading at a premium of 0.35 at 89.35 compared with spot closing of 89.00. The number of contracts traded was 10,614.

Tata Motors November 2012 futures were trading at a premium of 0.60 at 264.85 compared with spot closing of 264.25. The number of contracts traded was 9,563.

DLF November 2012 futures were at a premium of 1.10 point at 205.60 compared with spot closing of 204.50. The number of contracts traded was 10,493.

Tata Steel November 2012 futures were at a premium of 0.95 point at 365.00 compared with spot closing of 364.05. The number of contracts traded was 11,370.

Reliance Industries November 2012 futures were at a premium of 0.10 point at 775.10 compared with spot closing of 775.00. The number of contracts traded was 12,481.  

Among Nifty calls, 5,800 SP from the November month expiry was the most active call with contraction of 0.14 million open interest.

Among Nifty puts, 5,400 SP from the November month expiry was the most active put with an addition  of 0.80 million open interest.

The maximum OI outstanding for Calls was at 5800 SP (9.18 mn) and that for Puts was at 5400 SP (0.80 mn).

The respective Support and Resistance levels are: Resistance 5593.01 -- Pivot Point 5571.13 -- Support 5549.52.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.89 for November -month contract.

The top five scrips with highest PCR on OI were Welcorp 11.54, Abirlanuvo 2.00, Maruti 1.66, CanBank 1.35 and Titan 1.34.

Among most active underlying, Unitech witnessed an addition of 0.24 million of Open Interest in the November month futures contract followed by Jaiprakash Associates which witnessed an addition of 0.53 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed contraction of 1.35 million in the November month futures. Also, Hindalco witnessed an addition of 0.20 million in Open Interest in the November month contract. Finally, Tata Motors witnessed an addition of 0.31 million of Open Interest in the near month futures contract.