Nifty ends on flat note on profit booking

Extending previous session’s rally,  Nifty made a gap-up opening in early deals on Monday, with the frontline gauge recapturing its crucial 6,300 bastion supported by firm global cues. The US markets moved modestly higher in last session on getting good GDP data, at its fastest pace in two years. Moreover, the Asian markets were trading mostly in the green terrain taking cues from the US markets and as the International Monetary Fund highlighted that it’s raising its outlook for the world’s largest economy. Firmness continued on street in late morning on report that foreign funds remained buyers of Indian stocks on December 20 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 990.19 crore on Friday, as per provisional data from the stock exchanges. Some support also came in from report that indirect-tax collections grew by 5% in the April-November period of this fiscal, crossing Rs 3 lakh crore mark. Meanwhile, public sector oil marketing companies (OMCs) viz,, BPCL, HPCL and IOC edged higher after they hiked petrol prices on Friday by 41 paise a litre following the government’s decision to raise commission paid to petrol pump dealers and firming global oil rates. Simultaneously, diesel rates were increased by 10 paise per litre due to a hike in dealers’ commission

Although not near day’s high point, nifty continued to trade sanguine on sustained buying activities by both funds and retail investors, thanks to optimistic global set-up. Nevertheless, dovish comments from PMEAC’s chairman, also added to the upside trigger in the equity markets. In a potential good news for the economy, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan, underscored that he expects, a fall in vegetable prices to likely ease the headline inflation and retail inflation to 6.5 percent and 9.20 percent respectively in December. Further, appreciation in rupee value against dollars also added to the optimistic sentiments. However, Nifty declined by the close as traders preferring to cash out their gains two trading sessions ahead of F&O series expiry. With profit-booking creeping in the final hour of trade, erasing all the early gains, the index, made a flat closing. Nifty, though managed to end tad lower, just below the 6,300 levels with gains of close to one tens of a percent.

NSE sectoral indices made a green closing; CNX Energy up by 3.46%, CNX Realty up by 2.84%, CNX Finance up by 2.31%, CNX PSE up by 2.16% and CNX Auto up by 2.00% were the gainers on index. On the other hand, CNX IT down by 1.08%, CNX Media down by 0.52%, CNX Service down by 0.29%, CNX Pharma down by 0.03%, were the losers on index.

The India VIX increased by 1.49% at 16.26 as compared to its previous close of 16.02 on Friday. The 50-share CNX Nifty increased by 10.25 points or 0.16% to settle at 6,284.50.

Nifty December 2013 futures closed at 6302.35 on Monday at a premium of 17.85 points over spot closing of 6,284.50, while Nifty January 2014 futures ended at 6360.25 at a premium of 75.75 points over spot closing. Nifty December futures saw contraction of 4.99 million (mn) units taking the total outstanding open interest (OI) to 13.37 mn units. The near month December 2013 derivatives contract will expire on December 26, 2013.

From the most active contracts, DLF December 2013 futures traded at a premium of 0.85 points at 170.55 compared with spot closing of 169.70. The number of contracts traded was 27,397.

Reliance Industries December 2013 futures were at a premium of 4.05 points at 897.00 compared with spot closing of 892.95. The number of contracts traded was 36,251. 

ICICI Bank December 2013 futures were at a premium of 3.50 points at 1101.40 compared with spot closing of 1097.90. The number of contracts traded was 23,991. 

L&T December 2013 futures were at a premium of 5.00 points at 1073.00 compared with spot closing of 1068.00. The number of contracts traded was 19,001. 

SBI December 2013 futures were at a discount of 0.80 points at 1764.40 compared with spot closing of 1765.20. The number of contracts traded was 34,476. 

 Among Nifty calls, 6,300 SP from the December month expiry was the most active call with an addition of 0.47 million open interest.

Among Nifty puts, 6,200 SP from the December month expiry was the most active put with an addition of 0.04 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (6.00 mn) and that for Puts was at 6,200 SP (6.71 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6312.35-- Pivot Point 6289.65- Support -- 6261.8.The Nifty Put Call Ratio (PCR) OI wise, stood at 1.02 for December month contract. The top five scrips with highest PCR on OI were Grasim 2 79, Mcleodruss 2.13, Auro Pharma 1.98, Dr reddy 1.54 and Wipro 1.45.

Among most active underlying, SBI witnessed contraction of 0.90 million in Open Interest in the December month futures contract followed by Reliance Industries witnessed contraction of 2.05 million of Open Interest in the December month contract; United Spirits witnessed contraction of 1.32 million of Open Interest in the December month futures. ICICI Bank witnessed contraction of 1.91 million of Open Interest in the December month contract and TCS witnessed contraction of 0.76 million in Open Interest in the near month futures contract.