Nifty clocks good gains for the second day in a row

After trading in a range for most part of the day, sentiments turned bullish in the second half of the session as European counterparts made a good opening and after breaching the all new 6800 level ended the session just below it. Nifty ended the day’s trade in the positive terrain with a gain of over one and half percent. Sentiments remained up-beat as data showing that foreign funds remained net buyers of Indian stocks on April 7, 2014, buying shares worth a net Rs 703.71 crore and also on report that IMF forecasted better growth prospects for India in 2014. In the final hour of trade the index witnessed a spike up and touched its intraday high as healthy buying was observed in stocks like banks, capital goods, automobile, metal and healthcare sectors. The Indian currency after opening stronger depreciated and ended little changed with a negative bias.

In today's session traders added 6700 and 6800 puts and exited 6900 calls as they were expecting a small correction in Nifty. Nifty 6700 put shows maximum OI (near the strike price) where most of traders have written put options expecting Nifty to take support at this level. The top gainers from the F&O segment were Crompton Greaves, Sun Pharma, Shriram Transport Finance Company and Ashok Leyland. The top losers were Tech Mah, HCL Technologies, Infosys and ONGC.

Most of the sectoral indices on the NSE were settled in the green, CNX PSU Bank remained the major gainer, up 3.91% followed by Bank Nifty up 3.45%, CNX Finance up by 3.20%, CNX Pharma up by 2.60%, CNX Metal up by 2.29%, CNX Realty up by 2.25%, CNX Auto up by 1.78%, CNX Energy up by 1.21%, CNX FMCG up by 0.69% and CNX Media up by 0.21% while CNX IT declined by 1.04% remained the lone loser in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility ended up by 7.85% and reached 26.9125. The 50-share CNX Nifty increased by 101.15 points or 1.51% to settle at 6,796.20.

Among Nifty calls, 6,900 SP from the April month expiry was the most active call with contraction of 0.37 million open interest.

Among Nifty puts, 6,700 SP from the April month expiry was the most active put with addition of 1.31 million open interest.

The maximum OI outstanding for Calls was at 6,800 SP (3.82mn) and that for Puts was at 6,700 SP (6.17 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6834.90 -- Pivot Point 6770.00 - Support -- 6731.30.

The Nifty Put Call Ratio (PCR) finally stood at 1.52 for April month contract. The top five scrips with highest PCR on OI were HDFC 1.73, Century Textile 1.39, HDIL 1.16, PNB 1.12 and Ambuja Cement 1.10.

Among most active underlying, SBI witnessed addition of 0.41 million of Open Interest in the April month futures contract, followed by Ranbaxy witnessing a contraction of 0.32 million of Open Interest in the April month contract; SunPharma witnessed an addition of 0.28 million of Open Interest in the April month futures contract. ICICI Bank witnessed an addition of 0.62 million of Open Interest in the April month contract and Infy witnessed an addition of 0.43 million of Open Interest in the expiring April month's future contract.