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Weekly wrap: Sensex, Nifty gain despite weak Dec expiry


Sensex and Nifty managed to eke out gains this week but the major action was witnessed in the mid-cap space. Nifty and Nifty ascended 0.3-0.5 percent to close the week at 27,242 and 8200 levels respectively while BSE small-cap and CNX Mid-cap hoisted 0.2-0.9 percent this week.

Benchmark indices managed to log gains despite a weak expiry of the December series F&O contract this week.

Confirming the historical trend, overseas investors remained sellers in the holiday truncated week. FIIs were net sellers of stocks worth Rs 1298.66 in both the cash and derivative segment while DIIs bought stocks worth Rs 1414.55.

Despite all this key benchmarks managed to stay in the green zone helped by domestic

Traders rolled over fewer positions in the January series derivates segment form the November series in the Nifty futures segment, indicating investors have turned cautious after the recent correction.

Global volatility in crude oil prices and concerns over Russian currency slump added to risk aversion. The holiday season overseas was one of the reason for low volumes this week, said experts. Nifty ended a whopping 3.7 percent down in the December series and experts are not bullish on January series either but suggest against shorting or betting on a fall in the index. 

“Monthly VWAP (Volume weight age average) of the series is at around 8350 levels. Now, it has to scale above 8350-8375 zones to see the next leg of rally towards 8540 and higher levels. As per the recent trend upside is limited then the downside so traders are required to remain cautious and take calculative risk,” said Chandan Taparia – Derivative Analyst at Anand Rathi.

Top weekly Nifty gainers were JSPL, UltraTech, Bharti Airtel, DLF, NTPC, BoB & M&M 2.7% which rallied between 2-9 percent. Hindalco, L&T, BHEL,

Tata Power and Infosys were the top losers, scrapping  2.3-3.6 percent. From mid-caps 3i Infotech, Guj Gas JSL Stainless, Future Retail, Opto Circuits and India Cements hoisted 12-28 percent.

During the week, Real estate and PSU Banks were the top sectoral gainers followed by capital goods and consumer durables.

UR Bhatt of Dalton capital told CNBC TV18 that he expects Nifty hover in the range of 7900-8300 in the run to budget and public sector banks could be the big gainers of 2015.

The sentiment is reflected by Taparia who said he is witnessing build up of significant long positions in the banking space; Bank Nifty was up 3 percent and touched its all-time high levels in the December series and is also likely to drive the next leg of the rally feels Taparia.

CNX PSU bank index was up 2.1 percent while Bank Nifty –a mix of PSU and private bank stocks– eked 0.4 percent gains.


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