Nifty ends slightly ahead of earnings season

Volatility continued on street as the Nifty, after making positive opening, slipped into red in early deals on Thursday, tracking feeble global cues. Overnight, the US markets made a mixed closing despite payroll processor ADP reporting that private sector employment increased by more than expected in the month of December. Moreover, most of the Asian equity benchmarks were trading in the red led by Japanese Nikkei which edged lower by over one and a half percent as stronger yen weighed on export-oriented stocks. Investors turned cautious during the late morning session ahead of November industrial production data tomorrow and inflation numbers due next week. In currency front, Indian rupee was trading lower at 62.23 compared to its close of 62.07 on Wednesday, tracking broad gains in the dollar versus major currencies also add to the pessimistic sentiments. However, losses on the down-side remained capped as some support came in from Economic Affairs Secretary Arvind Mayaram's statement that 2013-14 is likely to end with an economic growth of about 5 percent on the back of spurt in investment activities in the latter half of the fiscal. Meanwhile, shares of Gold finance companies like Muthoot, Manappuram Finance traded jubilantly on the decision of Reserve Bank of India (RBI) to allow finance companies to offer loans of up to 75% of the value of pledged gold as against 60% earlier.

In absence of buying interest in noon trades, index slipped to day’s low ahead of the crucial earning season that would commence with Infosys reporting its Q3FY14 numbers on Friday. Nevertheless, pessimistic regional counterparts are also adding to the downside of the bourses. Nifty, down with loss of over one tenth of a percent are oscillating above the crucial 6,150 levels. During the last leg of the session index broke out in green for a brief period, however could not hold on to its gains and yet again resumed its declining streak. The Nifty concluded the session with loss of close to one tenth of a percent.

Most of the NSE sectoral indices made a red closing; CNX PSE up by 1.26%, CNX Metal up by 1.03%, CNX Energy up by 0.85%, CNX Pharma up by 0.71% and CNX Energy up by 0.46% were the top gainers on index. On the other hand, CNX Realty down by 2.56%, CNX PSU Bank down by 1.60%, CNX Infra down by 1.13, CNX Finance down by 0.66 and CNX Auto down by 0.62 were the top losers on index.

The India VIX decreased by 0.85% at 16.18 as compared to its previous close of 16.32 on Wednesday The 50-share CNX Nifty decreased by 6.25 points or 0.10% to settle at 6,168.35.

Nifty January 2014 futures closed at 6184.45 on Thursday at a premium of 16.10 points over spot closing of 6,168.35, while Nifty February 2014 futures ended at 6223.40 at a premium of 55.05 points over spot closing. Nifty January futures saw contraction of 0.19 million (mn) units taking the total outstanding open interest (OI) to 17.07 mn units. The near month January 2014 derivatives contract will expire on January 30, 2014.

From the most active contracts, SSLT January 2014 futures traded at a premium of 1.60 points at 201.60 compared with spot closing of 200.00. The number of contracts traded was 12,524.

Reliance Industries January 2014 futures were at a premium of 1.60 points at 854.60 compared with spot closing of 853.00. The number of contracts traded was 15,197. 

Tata Steel January 2014 futures were at a premium of 2.10 points at 393.30 compared with spot closing of 391.20. The number of contracts traded was 12,694. 

ICICI Bank January 2014 futures were at a premium of 5.40 points at 1055.75 compared with spot closing of 1050.35. The number of contracts traded was 16,086.  

L&T January 2014 futures were at a premium of 5.45 points at 977.70 compared with spot closing of 972.25. The number of contracts traded was 11,205.  Among Nifty calls, 6,300 SP from the January month expiry was the most active call with contraction of 0.01 million in open interest.

Among Nifty puts, 6,000 SP from the January month expiry was the most active put with an addition  of 0.05 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (5.09 mn) and that for Puts was at 6,000 SP (5.43 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6188.18 -- Pivot Point 6168.22 - Support - 6148.38.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.01 for January month contract.

The top five scrips with highest PCR on OI were DR Reddy 1.78, Apollo Tyre 1.75, Jubl Food 1.29, JSW Steel 1.25, and Infosys 1.07.

Among most active underlying, SBI witnessed an addition of 7.19 million in Open Interest in the January month futures contract followed by Reliance Industries witnessed  contraction of 0.30 million of Open Interest in the January month contract; United Spirits witnessed contraction of 0.05 million of Open Interest in the January month futures. ICICI Bank witnessed contraction of 0.08 million of Open Interest in the January month contract and TCS witnessed an addition of 0.04 million in Open Interest in the near month futures contract.