Nifty ends flat amid weak global cues

The domestic index S&P CNX Nifty, ended marginally lower on the last trading day of 2012 as investors remained cautious over the dampened global cues. On global front, European markets opened lower as worries over US budget negotiations dominated the trading mood after policy makers failed to reach an agreement over the weekend. While, Asian counters ended mixed with Indonesia, Japan, South Korea and Taiwan markets remaining closed on account of year-end holidays. However, Chinese benchmark edged higher in the trade, helped by strength in Chinese insurers and brokerages after mainland regulators said they plan to let them develop and manage mutual funds.

Back home, market made a flat start as traders adopted cautious approach awaiting the crucial current account data. Nifty continued gyrating around their neutral line in absence of buying interest from traders on concerns over recession in the US after lawmakers failed to arrive at a consensus to avert fiscal crisis. Market continued its lackluster trade in red in a narrow range in the late afternoon session on account of selling in FMCG, IT and Infra stocks and taking cues from subdued European counterparts. Finally, Nifty ended the session with a marginal loss.

Meanwhile, most of the sectoral indices on the NSE made a mixed closing. CNX Realty up by 1.06%, CNX Media up by 0.78%, CNX PSU Bank up by 0.75%, CNX PSE up by 0.62% and CNX Auto up by 0.61% remained the top gainers in the trade. While CNX FMCG down 0.41%, CNX IT down 0.32%, CNX Finance down 0.14%, CNX Infra down 0.10% and CNX Service down 0.08% remained the losers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 9.68% and reached 14.95.

The India VIX witnessed an addition of 9.68% at 14.95 as compared to its previous close of at 13.63 on Friday.

The 50-share S&P CNX Nifty lost 3.25 points or 0.06% to settle at 5,905.10.

Nifty January 2013 futures closed at 5951.75 on Monday at a premium of 46.65 points over spot closing of 5,905.10, while Nifty February 2013 futures ended at 5988.70, at a premium of 83.60 points over spot closing. Nifty January futures saw an addition of 0.04 million (mn) units taking the total outstanding open interest (OI) to 16.37 mn units. The near month January 2013 derivatives contract will expire on January 31, 2013.

From the most active contracts, NMDC January 2013 futures were trading at a premium of 1.85 at 166.80 compared with spot closing of 164.95. The number of contracts traded was 4,793.

Hindalco Industries January 2013 futures were at a premium of 1.95 at 131.95 compared with spot closing of 130.00. The number of contracts traded was 4,700.

HDIL January 2013 futures were at a premium of 1.10 point at 112.65 compared with spot closing of 111.55. The number of contracts traded was 4,329.

DLF January 2013 futures were at a premium of 2.55 point at 232.35 compared with spot closing of 229.80. The number of contracts traded was 14,519.

Tata Motors January 2013 futures were at a premium of 0.90 point at 313.90 compared with spot closing of 313.00. The number of contracts traded was 6,183.  

Among Nifty calls, 6,000 SP from the January month expiry was the most active call with an addition of 0.47 million open interest.

Among Nifty puts, 5,800 SP from the January month expiry was the most active put with an addition of 0.45 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (5.50 mn) and that for Puts was at 5800 SP (5.24mn).

The respective Support and Resistance levels are: Resistance 5917.02-- Pivot Point 5907.08 -- Support 5895.17.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.26 for January -month contract.

The top five scrips with highest PCR on OI were GUJ Fluoro 50.00, Finan Tech 1.26, Grasim 1.11, Tata Chem 1.10 and ABB 1.00.

Among most active underlying, NHPC witnessed an addition of 12.57 million of Open Interest in the January month futures contract followed by Unitech which witnessed an addition of 3.12million of Open Interest in the near month contract. Meanwhile, IFCI witnessed   an addition of 1.00 million in the January month futures. Also, Jaiprakash Associates witnessed an addition of 0.47 million in Open Interest in the January month contract. Finally, RCOM witnessed an addition of 0.82 million of Open Interest in the near month futures contract.