Nifty pares losses to end on a flat note

Extending previous session's southward journey, Nifty made a negative start and traded in red terrain with a cut of around half a percent in early deals on Friday amid weak global cues. Overnight, US stocks fell on their first day of trading in 2014 as traders looked cashing in their recent gains coupled with concerns about the outlook for the global economy. Moreover, all the Asian equity markets were trading in the red with Chinese markets declining around one and half a percent after Growth in the country’s services sector fell to a four-month low in December as business expectations dropped. Selling was witnessed on street in frontline blue chip stocks in late morning trade as the Indian rupee depreciated to one-month low against the dollar. Shares of public sector oil marketing companies (OMCs) like, BPCL, HPCL and IOC remained under pressure, as the government said that it will 'look into' a demand to raise the quota of subsidised LPG cylinders to 12 per household in a year from the current limit of nine. Meanwhile, marketmen opted wait and watch approach ahead of the press conference of the Prime Minister where he will seek to dispel the perception of policy paralysis and will also highlight the steps taken to boost the economy.

Trade took a turn for the worse in noon on lack of announcement of any future trajectory to lift the economy from Prime Minister. Further, he added that all emerging economies, including India, faced slowdown in the past couple of years but the global growth cycle is turning for the better. The 50-share index traded within a range throughout the day. However, recovery towards the fag end of the session lifted the index above the 6200 level.

Most of the NSE sectoral indices made a mix closing; CNX IT up by 2.06%, CNX Realty up by 0.98%, CNX Media up by 0.61%, CNX Service up by 0.60% and CNX Pharma up by 0.50% were the top gainers on index. On the other hand, CNX Energy down by 1.54%, CNX PSE down by 1.51%, CNX Infra down by 1.40%, CNX Metal down by 1.19%, and CNX Auto down by 1.12% were the top losers on index.

The India VIX decreased by 4.11% at 15.87 as compared to its previous close of 16.55 on Thursday. The 50-share CNX Nifty decreased by 10.00 points or 0.16% to settle at 6,211.15.

Nifty January 2014 futures closed at 6251.75 on Friday at a premium of 40.60 points over spot closing of 6,211.15, while Nifty February 2014 futures ended at 6294.90 at a premium of 83.75 points over spot closing. Nifty January futures saw contraction of 1.70 million (mn) units taking the total outstanding open interest (OI) to 17.60 mn units. The near month January 2014 derivatives contract will expire on January 30, 2014.

From the most active contracts, DLF January 2014 futures traded at a discount of 0.05 points at 169.00 compared with spot closing of 169.05. The number of contracts traded was 10,742.

Tata Steel January 2014 futures were at a premium of 2.95 points at 416.20 compared with spot closing of 413.25. The number of contracts traded was 10,463.  

Aurobindo Pharma January 2014 futures were at a premium of 3.45 points at 398.65 compared with spot closing of 395.20. The number of contracts traded was 11,886. 

Reliance Industries January 2014 futures were at a premium of 6.60 points at 871.80 compared with spot closing of 865.20. The number of contracts traded was 18,091. 

ICICI Bank January 2014 futures were at a premium of 6.15 points at 1076.20 compared with spot closing of 1070.05. The number of contracts traded was 23,556. 

 Among Nifty calls, 6,500 SP from the January month expiry was the most active call with an addition of 0.02 million in open interest.

Among Nifty puts, 6,200 SP from the January month expiry was the most active put with contraction of 0.35 million open interest.

The maximum OI outstanding for Calls was at 6,500 SP (5.07 mn) and that for Puts was at 6,200 SP (4.03 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6204.88 -- Pivot Point 6188.07 - Support - 6154.43.

The Nifty Put Call Ratio (PCR) OI wise, stood at 0.94 for January month contract.

The top five scrips with highest PCR on OI were DR Reddy 1.96, Apollo Tyre 1.66, Hexaware 1.39, JSW Steel 1.26 and Mcleodruss 1.20.

Among most active underlying, SBI witnessed an addition of 0.69 million in Open Interest in the January month futures contract followed by United Spirits witnessed  an addition of 0.09 million of Open Interest in the January month contract; Reliance Industries witnessed an addition of 0.30 million of Open Interest in the January month futures. Infosys witnessed contraction of 0.13 million of Open Interest in the January month contract and ICICI Bank witnessed an addition of 0.85 million in Open Interest in the near month futures contract.