Nifty ends on flat note amid profit booking

Nifty made a positive opening in early deals on Thursday as sentiments remained strong after the World Bank in its latest report highlighted that India’s economy is expected to grow by 6.2% in 2014 and 7.1 percent by 2016-17 as global demand recovers and domestic investment increases. On the global front, the US markets extended their rally mood overnight with S&P 500 surging to a new record high on the back of some upbeat earnings news from financial giant Bank of America. Moreover, most of the Asian equity benchmarks were trading in the green in early deals after core machine orders in Japan jumped a seasonally adjusted 9.3 percent on month in November to 882.6 billion yen. The headline figure shattered forecasts for an increase of 1.1 percent following the 0.6 percent gain in October. However, trend reversed during mid morning session as the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.58, compared with its close of 61.54/55 on Wednesday. Shares of telecom companies were also trading lower by around 6% over concerns that possible high bidding prices at the spectrum auction next month after eight companies applied to bid, signaling much stronger competition than expected also added to pessimistic sentiments.

During the noon trades, there was some sign of recovery on reports that government officials have indicated that the fiscal deficit will be below 4.8 per cent of GDP and it may come down to 4.65%. Finance Minister P Chidambaram too had stated that he is confident of Indian economy growing "step-by-step" and getting back to the high growth path in the next three years as global economy recovers. Some strength was also felt after rating agency Moody's said that India's sovereign downgrade is not on the cards. Positive start of the European markets also gave some fillip to the sluggish trade in the domestic market but in last leg of trade, index failed to attempt a pull-back in green and closed on a flat-to-negative note.

Most of the NSE sectoral indices made a red closing; CNX Metal up by 1.84%, CNX IT up by 1.61%, CNX Realty up by 0.52%, CNX PSE up by 0.27% and CNX MNC up by 1.14% was the top gainers on index. On the other hand, CNX Infra down by 1.03%, CNX Pharma down by 0.92%, CNX FMCG down by 0.85%, CNX Media down by 0.77% and CNX Auto down by 0.75% was the top losers on index.

The India VIX increased by 0.77% at 15.54 as compared to its previous close of 15.42 on Wednesday. The 50-share CNX Nifty decreased by 2.00 points or 0.03% to settle at 6,318.90.

Nifty January 2014 futures closed at 6329.85 on Thursday at a premium of 10.95 points over spot closing of 6,318.90, while Nifty February 2014 futures ended at 6365.60 at a premium of 46.70 points over spot closing. Nifty January futures saw an addition of 0.82 million (mn) units taking the total outstanding open interest (OI) to 19.02 mn units. The near month January 2014 derivatives contract will expire on January 30, 2014.

From the most active contracts, Bharti Airtel  January 2014 futures were at a premium of 0.35 points at 315.40 compared with spot closing of 315.05. The number of contracts traded was 12,565. 

Tata Steel January 2014 futures traded at a premium of 1.80 points at 382.80 compared with spot closing of 381.00. The number of contracts traded was 11,857.

Reliance Industries January 2014 futures were at a premium of 2.65 points at 887.85 compared with spot closing of 885.20. The number of contracts traded was 16,334. 

Coal India January 2014 futures were at a discount of 0.20 points at 302.45 compared with spot closing of 302.65. The number of contracts traded was 10,766.  

ICICI Bank January 2014 futures were at a premium of 3.15 points at 1062.60 compared with spot closing of 1,059.45. The number of contracts traded was 12,436.  Among Nifty calls, 6,400 SP from the January month expiry was the most active call with contraction of 0.11 million in open interest.

Among Nifty puts, 6,200 SP from the January month expiry was the most active put with contraction of 0.58 million open interest.

The maximum OI outstanding for Calls was at 6,400 SP (4.76 mn) and that for Puts was at 6,200 SP (6.54 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6343.65 -- Pivot Point 6321.75 - Support - 6297.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.17 for January month contract.

The top five scrips with highest PCR on OI were DR Reddy 3.05, HCL Tech 1.90, Infosys 1.90, HDFC 1.82 and Apollo Tyre 1.42.

Among most active underlying, SBI witnessed marginal contraction in Open Interest in the January month futures contract followed by Infosys witnessed contraction of 0.01 million of Open Interest in the January month contract; United Spirits witnessed marginal contraction in Open Interest in the January month futures. Reliance Industries witnessed contraction of 0.03 million of Open Interest in the January month contract and TCS witnessed an addition of 0.29 million in Open Interest in the near month futures contract.