Nifty snaps December F&O series up by over 3%

The domestic index S&P CNX Nifty finally finished the December series on a jubilant note recapturing its crucial 6,250 level as global cues remained strong, moreover the index performed well during the series and closed higher by about 187 points or 3.07 percent compared to last series. Traders were seen rolling-over their positions to fresh month F&O contracts on a cautious note that the Reserve Bank of India (RBI) will surprise markets by cutting interest rates at its policy review in January 2014. Earlier, the benchmark, despite late hour volatility, traded with traction through-out the session as sentiments remained up-beat after Mauritius said that it has put additional safeguards in place for global business companies operating from its jurisdiction to ensure their substantial presence there and to boost its image as a preferred global financial centre.

Meanwhile, the global cues too remained sanguine with most of the Asian markets ended in the green terrain, as investors picked up stocks amid renewed optimism about the global economy on the back of recent encouraging data from the US, Europe and parts of Asia. Back home, some support also came in from rally in fertilizer stocks, which remained upbeat on reports that fertilizer Ministry was seriously considering industry's demand to raise the fixed production cost incurred by manufacturers. Meanwhile, stocks from public sector oil marketing companies (OMCs) like BPCL, HPCL and IOC edged higher on reports that the oil ministry has decided to move a Cabinet note for a higher increase in diesel price - in line with Rs 5 raise recommended by the Kirit Parikh committee. Power stocks too remained on buyers’ radar after CCEA approved mega power policy, wherein it approved changes in tapering coal linkage policy. Finally, Nifty managed to stay above its crucial 6,250 levels with marginal gains.

Most of the NSE sectoral indices made a green closing; CNX PSE up by 0.78%, CNX MNC up by 0.64% and Bank Nifty up by 0.49% were the top gainers on index. On the other hand, CNX Pharma down by 0.52%, CNX Auto down by 0.37% and CNX Realty down by 0.29%, were the top losers on index.

The India VIX decreased by 4.49% at 14.88 as compared to its previous close of 15.58 on Tuesday. The 50-share CNX Nifty increased by 10.50 points or 0.17% to settle at 6,278.90.

Nifty January 2014 futures closed at 6344.50 on Thursday at a premium of 65.60 points over spot closing of 6,278.90, while Nifty February 2014 futures ended at 6387.05 at a premium of 108.15 points over spot closing. Nifty January futures saw an addition of 3.00 million (mn) units taking the total outstanding open interest (OI) to 18.95 mn units. The near month January 2014 derivatives contract will expire on January 30, 2014.

From the most active contracts, Reliance Industries January 2014 futures traded at a premium of 9.30 points at 897.00 compared with spot closing of 887.70. The number of contracts traded was 23,266.

ICICI Bank January 2014 futures were at a premium of 7.30 points at 1110.45 compared with spot closing of 1103.15. The number of contracts traded was 19,029. 

SBI January 2014 futures were at a premium of 16.70 points at 1768.50 compared with spot closing of 1751.80. The number of contracts traded was 25,878. 

Axis Bank January 2014 futures were at a premium of 10.95 points at 1310.95 compared with spot closing of 1300.00. The number of contracts traded was 18,066. 

Among Nifty calls, 6,500 SP from the January month expiry was the most active call with an addition of 0.88 million open interest.

Among Nifty puts, 6,200 SP from the January month expiry was the most active put with an addition of 0.70 million open interest.

The maximum OI outstanding for Calls was at 6,500 SP (3.22 mn) and that for Puts was at 6,200 SP (2.74 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6301.28 -- Pivot Point 6280.37 - Support - 6257.98.

The Nifty Put Call Ratio (PCR) OI wise, stood at 0.93 for January month contract.

The top five scrips with highest PCR on OI were Hexaware Technologies 6.83, ABirla Nuvo 2.00, IndusInd Bank 1.65, HDFC Bank 1.42, and Jubilant Foodworks 1.36.

Among most active underlying, SBI witnessed an addition of 1.19 million in Open Interest in the January month futures contract followed by Axis Bank witnessed an addition of 1.01 million of Open Interest in the January month contract; Infosys witnessed an addition of 0.63 million of Open Interest in the January month futures. Aurobindo Pharma witnessed an addition of 5.18 million of Open Interest in the January month contract and Reliance Industries witnessed an addition of 3.05 million in Open Interest in the near month futures contract.