Nifty closes flat with a negative bias

Nifty made positive start on the first trading day of 2014 with frontline gauges trading tad above their neutral lines on increased buying by funds as well as retail investors on the back of firm global cues. The US markets snapped the strong year 2013 on an upbeat note, traders remained in jubilation mood despite thin volumes, while release of a report from the Conference Board showing a bigger than expected rebound of consumer confidence too aided to the sentiments. However, all the major Asian markets are closed today on account of New Year. Back home, some support also came in on report that foreign institutional investors (FIIs) bought shares worth a net Rs 309.70 crore on December 31, 2013.

Meanwhile, the output of eight core sector industries grew 2.5% during April-November, showing signs of recovery. However, gains remained capped after India’s fiscal deficit in the April-November period reached 94% of the targeted budgetary estimate of Rs 5.42 lakh crore, raising concerns that India may well overshoot its ambitious target of containing the deficit at 4.8% of GDP. Some cautiousness also crept in as the retail inflation for industrial workers inched up marginally to 11.47 per cent in November compared to 11.06 per cent in October and 9.55 per cent in the same month last year due to higher prices of food items. In late morning session, higher level of buying was witnessed on street after PMEAC Chairman C Rangarajan's statement that Indian economy is likely to record 6-6.5 per cent growth in 2014-15. 

Index failed to hold earlier gains and entered into the red terrain in noon trade for a couple of times trading within a small range from negative and positive territory during the lacklustre session of trade. Most of the global markets were closed for the trading, unable to give any cues to the domestic market and settled the session slightly in the red.

Most of the NSE sectoral indices made a green closing; CNX Realty up by 2.46%, CNX PSU Bank up by 0.70%, CNX Infra up by 0.63%, CNX Pharma up by 0.42 and CNX Metal up by 0.29% were the top gainers on index. On the other hand, CNX IT down by 0.58%, CNX Energy down by 0.37%, CNX Finance down by 0.11%, CNX Service down by 0.08%, and CNX PSE down by 0.01% were the top losers on index.

The India VIX increased by 3.04% at 15.58 as compared to its previous close of 15.12 on Tuesday. The 50-share CNX Nifty decreased by 2.35 points or 0.04% to settle at 6,301.65.

Among Nifty calls, 6,500 SP from the January month expiry was the most active call with an addition of 0.22 million in open interest.

Among Nifty puts, 6,300 SP from the January month expiry was the most active put with an addition of 0.28 million open interest.

The maximum OI outstanding for Calls was at 6,500 SP (4.62 mn) and that for Puts was at 6,300 SP (4.07 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6319.82 -- Pivot Point 6309.03 - Support - 6290.87.

The Nifty Put Call Ratio (PCR) OI wise, stood at 0.90 for January month contract.

The top five scrips with highest PCR on OI were Apollotyre 1.69, Hexaware 1.49,  Mcleodruss 1.40, Indusind BK 1.32and DR Reddy 1.16.

Among most active underlying, United Spirits witnessed an addition of 0.01 million in Open Interest in the January month futures contract followed by SBI witnessed an addition of 0.06 million of Open Interest in the January month contract; Reliance Industries witnessed an addition of 0.16 million of Open Interest in the January month futures. TCS witnessed contraction of 0.03 million of Open Interest in the January month contract and Infosys witnessed an addition of 0.01 million in Open Interest in the near month futures contract.