Nifty ends flat after initial Diwali sparkle

Amid subdued trade, nifty ended flat on Friday as mild profit booking was seen at higher levels in late trades. A bout of initial volatility was witnessed as Nifty made opened in positive terrain in early deal as blue chips rallied on the back of strong foreign buying, marking a remarkable turnaround from two months earlier when the rupee fell to record lows and threatened a crisis of confidence. Intraday volatility continued on street as index pared initial gains in late morning. Sentiments remained up-beat after core sector industries recorded 8 percent growth in September, highest in the past 11 months. The growth in the eight infrastructure industries was mainly due to expansion in crude oil, steel and electricity production. Sentiments also got some boost after Department of Economic Affairs Secretary Arvind Mayaram has said that the government will meet the fiscal deficit target of 4.8 percent of GDP for the current financial year. Volatility was witnessed as index remained positive after reversing intraday gains in afternoon trade mainly buying witnessed in rate sensitive stocks such as banking, realty and auto. In last leg of trade, the index pared some gains but managed to close above 6,300 level.

NSE sectoral indices made a green closing. CNX PSU Bank up by 4.65%, CNX Realty up by 2.79%, CNX Media up by 1.40%, CNX Auto up by 1.26% and CNX Metal up by 1.20%. On the other hand, CNX FMCG down by 1.31%, CNX Energy down by 0.87% and CNX IT down by 0.60% there was losers on index.

The India VIX increased by 5.83% at 18.64 as compared to its previous close of 18.39 on Thursday. The 50-share CNX Nifty inclined by 8.05 points or 8.05% to settle at 6,307.20.

Nifty November 2013 futures closed at 6358.70 on Friday at a premium of 51.50 points over spot closing of 6307.20, while Nifty December 2013 futures ended at 6401.45 at a premium of 94.25 points over spot closing. Nifty November futures saw an addition of 0.06 million (mn) units taking the total outstanding open interest (OI) to 23.09 mn units. The near month November 2013 derivatives contract will expire on November 28, 2013.

From the most active contracts, DLF November 2013 futures last traded at a premium of 1.80 points at 158.70 compared with spot closing of 156.90. The number of contracts traded was 17,814.

IDFC November 2013 futures were at a premium of 1.30 points at 113.90 compared with spot closing of 112.60. The number of contracts traded was 19,434. 

Yes Bank November 2013 futures were at a premium of 4.15 points at 381.75 compared with spot closing of 377.60. The number of contracts traded was 26,432. 

ICICI Bank November 2013 futures were at a premium of 13.00 points at 1142.00 compared with spot closing of 1129.00. The number of contracts traded was 28,201. 

Union Bank of India November 2013 futures were at a premium of 1.30 points at 135.20 compared with spot closing of 133.90. The number of contracts traded was 23,178.    Among Nifty calls, 6,400 SP from the November month expiry was the most active call with an addition of 0.85 million open interest.

Among Nifty puts, 6,000 SP from the November month expiry was the most active put with an addition of 0.56 million open interest.

The maximum OI outstanding for Calls was at 6,400 SP (3.39 mn) and that for Puts was at 6,000 SP (3.92 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6330.88-- Pivot Point 6308.92-- Support -- 6285.23.The Nifty Put Call Ratio (PCR) OI wise, stood at 1.73 for November month contract. The top five scrips with highest PCR on OI were, Grasim 474, Havells 2.00, Srtransfin 2.00, Jain irrigation 1.33, and Bharat Forg 1.33.

Among most active underlying, SBI witnessed contraction of 1.70 million of Open Interest in the November month futures contract followed by United Spirits with an addition of 0.06 million of Open Interest in the near month contract; Reliance Industries witnessed an addition  of 0.44 million of Open Interest in the November month futures. Tata Consultancy Services witnessed contraction of 0.09 million in Open Interest in the November month contract and ICICI Bank witnessed addition of 0.76 million in Open Interest in the near month futures contract.