Nifty twists on roll over day; churns record turnover

Nifty closed higher on Thursday a day of expiry for November derivative contracts but it failed to sustain the 6,100-mark due to volatility in last hour of trade. Nifty opened higher in early deals on back of covering-up of pending short positions in view of monthly expiry in the derivatives segment amid a firming trend in the Asian region in line with overnight gains in the US markets fuelled by upbeat jobs figures, mainly influenced the trading sentiment. However, the gains on the upside remained capped as the rupee fell in early trades with the unit at 62.33 per dollar versus Wednesday's close of 62.14/15. Month-end oil-related dollar demand will keep the rupee under pressure. Buying continued on the street in late morning ahead of Q2 GDP numbers to be announced tomorrow, as there is general belief that after a sluggish first quarter, India’s economy may have expanded by about 4.5 percent in the July-September period. Buying in telecom stocks too supported the sentiments with stocks like, Bharti Airtel, Idea Cellular and Tata Communications edging higher.

Firmness continued on street in the afternoon amid buying witnessed in Oil and gas company stocks after Oil Secretary Vivek Rae said that the Ministry of Petroleum and Natural Gas is working out a policy framework on shale gas exploration under which private domestic oil and gas players would get the right to explore shale gas or oil in their blocks. Volatility increased mainly in the dying hours of the trade, which lifted the index near day’s highest point. Additionally, market recorded second highest turnover of Rs 4.98 lakh crore on the F&O expiry session.

NSE sectoral indices made a green closing; CNX Infra up by 1.50%, CNX Media up by 1.34%, CNX Realty up by 1.18%, CNX Metal up by 1.03% and CNX PSE up by 0.87% % were the gainers on index. On the other hand, there was no loser on index.

The India VIX decreased by 2.03% at 20.71 as compared to its previous close of 21.14 on Wednesday. The 50-share CNX Nifty increased by 34.75 points or 0.57% to settle at 6,091.85.

Nifty December 2013 futures closed at 6148.80 on Thursday at a premium of 56.95 points over spot closing of 6,091.85, while Nifty January 2014 futures ended at 6199.15 at a premium of 107.30 points over spot closing. Nifty December futures saw an addition of 3.26 million (mn) units taking the total outstanding open interest (OI) to 17.30 mn units. The near month December 2013 derivatives contract will expire on December 26, 2013.

From the most active contracts, Reliance Industries December 2013 futures last traded at a premium of 6.35 points at 856.45 compared with spot closing of 850.10. The number of contracts traded was 23,792.

ICICI Bank December 2013 futures were at a premium of 2.50 points at 1048.85 compared with spot closing of 1046.35. The number of contracts traded was 22,071. 

United Spirits December 2013 futures were at a premium of 16.00 points at 2653.85 compared with spot closing of 2637.85. The number of contracts traded was 21,853. 

SBI December 2013 futures were at a premium of 13.70 points at 1778.70 compared with spot closing of 1765.00. The number of contracts traded was 23,390.    Among Nifty calls, 6,300 SP from the December month expiry was the most active call with an addition of 0.33 million open interest.

Among Nifty puts, 6,000 SP from the December month expiry was the most active put with an addition of 0.80 million in open interest.

The maximum OI outstanding for Calls was at 6,300 SP (4.00 mn) and that for Puts was at 6,000 SP (4.59mn).

The respective Support and Resistance levels of Nifty are: Resistance 6113.77-- Pivot Point 6091.03-- Support -- 6069.12.The Nifty Put Call Ratio (PCR) OI wise, stood at 0.88 for December month contract. The top five scrips with highest PCR on OI were, Tata Steel 1.66, L&T 1.76, Auro Pharma 1.56, JSW Steel 1.22and Cromp Greav 1.11.

Among most active underlying, SBI witnessed contraction of 1.35 million of Open Interest in the December month futures contract followed by United Spirits with contraction of 0.72 million of Open Interest in the near month contract; Reliance Industries witnessed an addition of 2.20 million of Open Interest in the December month futures. ICICI Bank witnessed contraction of 1.29 million in Open Interest in the December month contract and TCS witnessed contraction of 0.71 million in Open Interest in the near month futures contract.