Nifty ends unchanged ahead of winter session of Parliament

After witnessing a gap up opening, CNX S&P Nifty ended the session almost unchanged as investors turned cautious ahead of the winter session of Parliament, which is likely to begin from Nov 22 as Mamata Banerjee led Trinamool Congress is likely to bring no confidence motion against the incumbent UPA. Global cues remained unsupportive as Asian shares exhibited mixed close as investors weighed the hopes of a compromise in the US fiscal crisis against Moody’s Investors Service scrapping France's top-notch credit rating, which highlighted downside risk from the euro zone debt woes. Gains in Asia largely evaporated after the Bank of Japan concluded a policy meeting without any new action. Meanwhile, European stocks traded lower on Tuesday after ratings agency yanked France's coveted AAA credit rating.

Back home, market kick started with a huge gap on the upside as supportive cues from US markets provided the much needed support to the local benchmark in first half. Investors’ morale got buttressed on the back of reports that US housing data came better-than-expected. Moreover, market also got some support in the initial trade with the statement of C Rangarajan, chairman of Prime Minister’s Economic Advisory Council that government will strive to rein in the fiscal deficit within the revised target of 5.3% of GDP for 2012. However, disappointing cues from European markets took their toll on domestic sentiments in second half and dragged the frontline gauges below the psychological 5,550 (Nifty) levels. Investors mainly resorted to profit booking following the decline in European markets. The sentiment also took a hit after shares of gold finance companies, namely, Manappuram Finance and Muthoot Finance dipped on Tuesday after the Reserve Bank of India, in a bid to dissuade people from indulging in speculative activity, banned banks from advancing any loans to its customers for purchasing gold in any form, which includes primary gold, gold bullion, gold jewellery, gold coins, units of gold Exchange Traded Funds (ETF) and units of gold mutual funds. Even losses in pharmaceuticals stocks, namely Cipla, Ranbaxy Laboratories, added to pessimistic environment. EGoM on the proposed National Pharmaceutical Pricing Policy, headed by Agriculture Minister Sharad Pawar, will meet on Nov 21 to discuss concerns raised by the finance ministry. But, market pared all its losses in the late trade supported by recovery in European counters. Finally, Nifty ended the volatile session almost unchanged reclaiming crucial 5,550 mark.

Meanwhile, most of the sectoral indices on the NSE were settled in the red, CNX Realty remained the major loser, down 3.19% followed by CNX Media down 0.99% and CNX Metal down by 0.75% while CNX Finance and CNX Auto rose 0.67% and 0.59% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined by 5.22% and reached 15.81.

The India VIX witnessed contraction of 5.22% at 15.81 as compared to its previous close of at 16.68 on Monday.

The 50-share S&P CNX Nifty flat 0.15 points to settle at 5,571.55.

Nifty November 2012 futures closed at 5583.85 on Tuesday at a premium of 12.30 points over spot closing of 5,571.55, while Nifty December 2012 futures ended at 5615.50, at a premium of 43.95 points over spot closing. Nifty November futures saw contraction of 0.66 million (mn) units taking the total outstanding open interest (OI) to 14.07 mn units. The near month November 2012 derivatives contract will expire on November 29, 2012.

From the most active contracts, Reliance Communications November 2012 futures were trading at a premium of 0.60 at 59.10 compared with spot closing of 58.50. The number of contracts traded was 10,658.

JP Associates November 2012 futures were trading at a premium of 0.35 at 86.15 compared with spot closing of 85.80. The number of contracts traded was 11,931.

Tata Motors November 2012 futures were at a premium of 0.40 point at 266.95 compared with spot closing of 266.55. The number of contracts traded was 13,701.

DLF November 2012 futures were at a premium of 0.40 point at 199.95 compared with spot closing of 199.55. The number of contracts traded was 14,888.

ICICI Bank November 2012 futures were at a premium of 2.05 point at 1028.95 compared with spot closing of 1026.90. The number of contracts traded was 13,064.

Among Nifty calls, 5,800 SP from the November month expiry was the most active call with contraction of 0.85 million open interest.

Among Nifty puts, 5,400 SP from the November month expiry was the most active put with an addition  of 0.34 million open interest.

The maximum OI outstanding for Calls was at 5800 SP (8.32 mn) and that for Puts was at 5400 SP (7.52 mn).

The respective Support and Resistance levels are: Resistance 5607.38 -- Pivot Point 5577.87 -- Support 5542.03.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.92 for November -month contract.

The top five scrips with highest PCR on OI were Welcorp 11.54, Abirlanuvo 2.00, Maruti 1.73, M&M 1.59 and BHARTI Airtel 1.34.

Among most active underlying, Suzlon Energy witnessed contraction of 32.88 million of Open Interest in the November month futures contract followed by Jaiprakash Associates which witnessed contraction of 4.36 million of Open Interest in the near month contract. Meanwhile, IFCI witnessed an addition of 1.04 million in the November month futures. Also, RCOM witnessed contraction of 0.88 million in Open Interest in the November month contract. Finally, Hindalco Industries witnessed contraction of 0.12 million of Open Interest in the near month futures contract.