Nifty ends tad higher ahead of release of Nov IIP data

Nifty made a flat opening in near neutral lines as investors remained on sidelines ahead of the November index of industrial production data to be released later today. On the global front, the US markets ended mostly flat overnight ahead of the release of the closely watched monthly jobs report as traders seemed reluctant to make any significant moves. Moreover, Asian equity benchmarks were exhibiting mixed trend as release of Chinese trade data that indicates slowing growth momentum in the world’s second-largest economy weighed on investors’ sentiments. Trend reversed in mid morning account of buying in IT stocks after Infosys Q3 results beat expectations. Infosys posted a 21 per cent rise in quarterly net profit, beating estimates, as stronger economic growth in Europe and the United States revived demand for outsourcing services. Market sentiments got boosted as the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.94, compared with its close of 62.07/08 on Thursday, January 9, 2014.

In early noon trades, narrower trade deficit data for month of December bolstered sentiment. On the macro-front, with exports registering growth of 3.49% to $26.35 billion for the month of December, India’s trade deficit narrowed to $10.14 billion in December from $17.59 billion a year earlier. Furthermore, the ZyFin Business firm highlighted that Indian economic growth is likely to improve in the coming future on the back of increasing exports and industrial activity in the country. ZyFin Research's Business Cycle Indicator (BCI) has registered 4.7 percent growth in December 2013 compared to the same period in the previous year. However, the index took a turn for the worse in last leg of trade after IndusInd Bank’s Q3 results spelled pessimism for the entire banking pivotal. Private sector lender stocks tanked close to 3% on asset quality concerns, even as the bank reported better than expected net profit growth by 29.8 percent, year-on-year basis to Rs 346.9 crore. The bank’s Gross non-performing assets (NPA) climbed to 1.18 percent during the quarter from 1.11 percent in earlier quarter and 0.99 percent in a year ago period.

Most of the NSE sectoral indices made a red closing; CNX IT up by 2.16%, CNX FMCG up by 1.34%, CNX Media up by 0.37%, CNX Energy up by 0.26% and CNX Pharma up by 0.24% were the top gainers on index. On the other hand, CNX PSU Bank down by 1.74%, CNX Realty down by 1.63%, CNX Bank down by 1.51%, CNX Metal down by 1.36% and CNX Finance down by 1.18% were the top losers on index.

The India VIX decreased by 3.70% at 15.58 as compared to its previous close of 16.18 on Thursday. The 50-share CNX Nifty increased by 3.10 points or 0.05% to settle at 6,171.45.

Nifty January 2014 futures closed at 6178.25 on Friday at a premium of 6.80 points over spot closing of 6,171.45, while Nifty February 2014 futures ended at 6214.80 at a premium of 43.35 points over spot closing. Nifty January futures saw contraction of 0.02 million (mn) units taking the total outstanding open interest (OI) to 17.04 mn units. The near month January 2014 derivatives contract will expire on January 30, 2014.

From the most active contracts, Tata Steel January 2014 futures were at a premium of 2.25 points at 386.25 compared with spot closing of 384.00. The number of contracts traded was 12,501. 

Reliance Industries January 2014 futures were at a premium of 4.10 points at 860.25 compared with spot closing of 856.15. The number of contracts traded was 31,064. 

ICICI Bank January 2014 futures were at a contraction of 0.20 points at 1029.80 compared with spot closing of 1030.00. The number of contracts traded was 30,075.  

United Spirits January 2014 futures traded at a premium of 6.80 points at 2799.80 compared with spot closing of 2793.00. The number of contracts traded was 21,948.

L&T January 2014 futures were at a premium of 2.90 points at 959.90 compared with spot closing of 957.00. The number of contracts traded was 12,418.  Among Nifty calls, 6,300 SP from the January month expiry was the most active call with an addition of 0.01 million in open interest.

Among Nifty puts, 6,000 SP from the January month expiry was the most active put with contraction of 0.19 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (5.11mn) and that for Puts was at 6,000 SP (5.24 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6227.17 -- Pivot Point 6183.38 - Support - 6127.67.

The Nifty Put Call Ratio (PCR) OI wise, stood at 0.99 for January month contract.

The top five scrips with highest PCR on OI were DR Reddy 2.84, Infosys 1.44, Apollo Tyre 1.38, Jubl Food 1.37 and JSW Steel 1.14.

Among most active underlying, SBI witnessed an addition of 7.36 million in Open Interest in the January month futures contract followed by Reliance Industries witnessed  contraction of 0.39 million of Open Interest in the January month contract; United Spirits witnessed an addition of 0.09 million of Open Interest in the January month futures. ICICI Bank witnessed an addition of 0.77 million of Open Interest in the January month contract and TCS witnessed an addition of 0.10 million in Open Interest in the near month futures contract.