Nifty snaps four session winning streak, closes with modest cut

S&P CNX Nifty after gyrating in a narrow band of 45 points snapped its four session gaining streak with a cut of 0.15 percent. There was no major buying in any corner that could lift the markets and the traders remained on sidelines ahead of the crucial discussion and vote in the parliament on the issue of FDI in retail. Though there was some encouraging economic data but traders waited for the political event to get over before taking any long bet. India’s manufacturing sector growth improved in November, registering the fastest pace in five months, driven by a strong pick up in new orders and improved purchasing activity. The HSBC India Manufacturing Purchasing Managers' Index (PMI) stood at 53.7 in November, up from 52.9 in October.

The global markets too remained sluggish and despite sign of manufacturing improvement across the globe, concern of US fiscal-cliff kept looming large, also there was Euro area finance ministers meet scheduled for the day, keeping the traders cautious.

Bulls that have been in high spirit for last four days opted to take a breather with blue-chip counters witnessing limited buyers, though the broader markets continued their upbeat mood and added significant gains. On the sectoral front on NSE, it was a mixed day with CNX Finance losing 0.56%, CNX Bank Nifty down by 0.45%, CNX Services down by 0.41%, CNX Pharma down by 0.25% and FMCG down by 0.24%. On the other hand, CNX realty up by 1.44%, CNX Media up by 1.18%, CNX Commodities up by 0.65%, CNX Metal up by 0.63% and CNX PSU Bank too was up by 0.63%. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, inched up by 3.10% and reached 15.62.

The India VIX witnessed an addition of 3.10% at 15.62 as compared to its previous close of at 15.15 on Friday.

The 50-share S&P CNX Nifty lost 8.90 points or 0.15% to settle at 5,870.95.

Nifty December 2012 futures closed at 5911.6 on Monday at a premium of 40.65 points over spot closing of 5,870.95, while Nifty January 2013 futures ended at 5943.1, at a premium of 72.15 points over spot closing. Nifty December futures saw an addition of 0.30 million (mn) units taking the total outstanding open interest (OI) to 19.71 mn units. The near month December 2012 derivatives contract will expire on December 27, 2012.

From the most active contracts, Unitech December 2012 futures were trading at flat. The number of contracts traded was 10,031.

Jaiprakash Associates December 2012 futures were trading at a discount of 0.35 at 97.25 compared with spot closing of 97.60. The number of contracts traded was 12,552.

Tata Motors December 2012 futures were at a premium of 2.2 point at 274.4 compared with spot closing of 272.20. The number of contracts traded was 13,888.

DLF December 2012 futures were at a premium of 1.85 point at 212 compared with spot closing of 210.15. The number of contracts traded was 10,408.

Tata Steel December 2012 futures were at a premium of 1.70 point at 391.55 compared with spot closing of 389.85. The number of contracts traded was 12,457.             

Among Nifty calls, 6,000 SP from the December month expiry was the most active call with an addition of 0.82 million open interest.

Among Nifty puts, 5,500 SP from the  December month expiry was the most active put with  an addition  of 0.84 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (7.39mn) and that for Puts was at 5500 SP (5.78 mn).

The respective Support and Resistance levels are: Resistance 5895.2 -- Pivot Point 5874.9 -- Support 5850.65.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.35 for December -month contract.

The top five scrips with highest PCR on OI were PNB 1.69, Bharti Airtel 1.16, Bhusan Steels 1.00, ABB 1.00 and Abirlanuvo 1.00.

Among most active underlying, NHPC witnessed an addition of 1.46 million of Open Interest in the December month futures contract followed by Unitech which witnessed contraction of 3.65 million of Open Interest in the near month contract. Meanwhile, GMR Infrastructure witnessed contraction of 2.70 million in the December month futures. Also, IFCI witnessed an addition of 1.56 million in Open Interest in the December month contract. Finally, RCOM witnessed contraction of 0.14 million of Open Interest in the near month futures contract.