Nifty makes a positive closing after a range-bound session

S&P CNX Nifty after gyrating in a tight band finally managed a green close on Tuesday, though the mood remained cautious throughout the day and traders avoided active trading ahead of the discussion in the Lok Sabha on the FDI in multi brand retail even as the UPA government expressed confidence of defeating the motion against the move. Traders opted to remain on sidelines waiting for the development to finally get over. Also, there was some cautiousness due to RBI Deputy Governor Subir Gokarn’s statement that the fiscal deficit is likely to be around 5.5% of the GDP this financial year, while global ratings agency cautioned that a loosening in fiscal policy ahead of the 2014 elections can put pressure on ratings.

The global markets too were unable to give any direction to the local markets as the US markets ended lower overnight, while the Asian peers continued their sluggishness and made a mixed closing, though the underperforming China made a bounce back. Major European markets however, made a positive start and supported the local markets in last leg of trade.

Markets remained in consolidation phase and traders on the sidelines avoided any long position built-up. There was some weakness in the IT sector after the Indian rupee strengthened. Though, the banking stocks moved higher despite Moody's saying that it continues to maintain its negative outlook on the Indian banking system as asset quality is likely to weaken further in the current uncertain macro-economic environment, creating further stress on banks' profitability. On the sectoral front on NSE, most of the indices closed in green, though CNX IT was down 0.57%, CNX Auto down by 0.39% and CNX MNC was down by 0.31%. On the other hand, CNX Media up by 1.91%, CNX Energy up by 1.72%, CNX PSU Bank up by 1.49%, Bank Nifty up by 0.77%, CNX Finance up by 0.72% and CNX Consumption up by 0.64% were the top gainers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, inched up by 1.86% and reached 15.91. 

The India VIX witnessed an addition of 1.86% at 15.91 as compared to its previous close of at 15.62 on Monday.

The 50-share S&P CNX Nifty gained 18.30 points or 0.31% to settle at 5,889.25.

Nifty December 2012 futures closed at 5923.65 on Tuesday at a premium of 34.4 points over spot closing of 5,889.25, while Nifty January 2013 futures ended at 5956.00, at a premium of 66.75 points over spot closing. Nifty December futures saw an addition of 0.03 million (mn) units taking the total outstanding open interest (OI) to 19.74 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 at a discount of 0.20 at 33.85 compared with spot closing of 34.05. The number of contracts traded was 11,728.

Jaiprakash Associates December 2012 futures were at a discount of 0.75 at 101 compared with spot closing of 101.75. The number of contracts traded was 17,724.

Tata Motors December 2012 futures were at a premium of 1.7 point at 273.45 compared with spot closing of 271.75. The number of contracts traded was 11,548.

Reliance Power December 2012 futures were at a discount of 0.3 point at 98.35 compared with spot closing of 98.65. The number of contracts traded was 11,302.

DLF December 2012 futures were at a premium of 1.60 point at 214.5 compared with spot closing of 212.90. The number of contracts traded was 14,651.              

 Among Nifty calls, 6,000 SP from the December month expiry was the most active call with an addition of 0.81 million open interest.

Among Nifty puts, 5,500 SP from the  December month expiry was the most active put with  an addition  of 0.78 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (8.21mn) and that for Puts was at 5500 SP (6.57 mn).

The respective Support and Resistance levels are: Resistance 5903.13 -- Pivot Point 5881.06 -- Support 5867.18.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.30 for December -month contract.

The top five scrips with highest PCR on OI were ABB 2.33, PNB 1.60, Bharti Airtel 1.07, ABB 1.00 and HDFC 1.00.

Among most active underlying, Unitech witnessed an addition of 7.66 million of Open Interest in the December month futures contract followed by IFCI which witnessed an addition of 2.78 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed an addition of 4.06 million in the December month futures. Also, RCOM witnessed contraction of 1.68 million in Open Interest in the December month contract. Finally, Tata Motors witnessed contraction of 0.33 million of Open Interest in the near month futures contract.