Nifty ends above 7650 mark; achieves all time high closing

Nifty continued its bull run for third straight session and closed the wonderful day of trade with gains of about a percent as sentiments remained buoyant on the back of broad based buying along with heavyweights. Strong inflows from foreign institutional investors (FIIs) and supportive cues from global equity markets also helped gains. After a positive opening, market started extending its gains as sustained buying witnessed mostly of the key heavyweights. Afterwards, the local index extended its gains and conquered its crucial 7,650 mark in morning trade on hopes that the Narendra Modi-led government would take quick decision to put the economy back on track. Moreover, on the global front, Asian stocks rose on better-than-expected. US payrolls, Chinese trade and Japanese economic-growth data too aided the sentiment. However, some amount of profit booking emerged at higher level, but nifty managed to end the day’s trade with a gain of about a percent above its crucial 7,650 level. Shares of rail stocks surged after President Pranab Mukherjee in his address to the Joint Session of Parliament said that the government will launch a diamond quadrilateral project of high-speed trains, while Fertiliser shares rose on reports that the government plans to raise the price of urea, the fertiliser most used by its farmers, by at least 10% in order to contain subsidy costs that are straining the budget.

After three continuous sessions of bull run, investors were now keeping an eye on international trade, industrial production and consumer inflation numbers this week. Overall, the investors' sentiments are likely to remain positive as all are hopeful of an economic turnaround. However, one may also expect some amount of profit-booking in coming days after this rally. The much-awaited Budget expected to be unveiled by mid-July will be the first major policy document of the Narendra Modi government. Looking at the index option data for June series maximum call OI is seen at 7500 followed by 8000 strike prices whereas maximum put OI is at 7500 & 7200 strike prices suggesting broader range is likely in between 7200-8000 levels. In today's session, the 7700, 7800 and 7900 Call strikes saw addition of 3.28, 5.46 and 11.32 lakh shares, respectively. On the other hand, 7600, 7500 and 7400 Put strikes saw addition of 5.29, 15.69 and 12.26 lakh shares, respectively. Meanwhile, some traders exited from 7400, 7500 and 7600 puts on the back of profit booking.

Meanwhile, India VIX - the gauge of underlying volatility in the market - has risen in today's session as traders turned cautious after the benchmark breached the psychological level of 7650. The top gainers from the F&O Securities were Unitech, Grasim Industries and India Cements. The top losers were Jubilant Foodworks, Hindustan Petroleum Corporation and Oil & Natural Gas Corporation (ONGC). Among the top gainers, Grasim Industries futures ended the trade with a gain of 11.73%, on hopes of revival in demand amid firm cement prices. While Among the top losers, ONGC futures ended the trade with a cut of 2.08% on the back of profit booking.

Most of the sectoral indices on the NSE were settled in the green, CNX Realty up by 5.96%, CNX Media up by 3.80%, CNX Metal up by 1.68%, CNX Auto up by 1.60%, CNX IT up by 0.81%, CNX Finance up by 0.45%, CNX Pharma up by 0.45%, Bank Nifty up by 0.16% and CNX Energy up by 0.09% while CNX PSU Bank declined by 0.23% and CNX FMCG down by 0.13%, remained the losers in the trade.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 6.96% and reached 17.09. The 50-share CNX Nifty increased by 71.20 points or 0.94% to settle at 7,654.60. Nifty June 2014 futures closed at 7669.75 on Monday at a premium of 15.15 points over spot closing of 7,654.60, while Nifty July 2014 futures ended at 7701.60 at a premium of 47.00 points over spot closing. Nifty June futures saw an addition of 1.24 million (mn) units, taking the total outstanding open interest (OI) to 15.17 mn units. The near month June 2014 derivatives contract will expire on June 26, 2014.

From the most active contracts, Unitech June 2014 futures were flat compared with spot closing of 37.85. The number of contracts traded was 26,600.

Reliance Communications June 2014 futures were at a premium of 0.05 points at 153.55 compared with spot closing of 153.50. The number of contracts traded was 18,601.

Idea Cellular June 2014 futures were at a premium of 0.90 points at 147.40 compared with spot closing of 146.50. The number of contracts traded was 23,093.

DLF June 2014 futures traded at a premium of 2.85 points at 242.75 compared with spot closing of 239.90. The number of contracts traded was 20,792.

Power Grid June 2014 futures traded at a premium of 0.75 points at 137.95 compared with spot closing of 137.20. The number of contracts traded was 23,858. Among Nifty calls, 7,600 SP from the June month expiry was the most active call with an addition of 0.32 million open interest. Among Nifty puts, 7,500 SP from the  June month expiry was the most active put with an addition of 0.96 million open interest. The maximum OI outstanding for Calls was at 7,500 SP (4.47 mn) and that for Puts was at 7,200 SP (4.29 mn).  The respective Support and Resistance levels of Nifty are: Resistance 7692.12 --- Pivot Point 7636.18 --- Support --- 7598.67.

The Nifty Put Call Ratio (PCR) finally stood at 1.10 for June month contract. The top five scrips with highest PCR on OI were Mcleod Russel India with 1.64, Hero MotoCorp with 1.54, Tata Steel with 1.28, UltraTech Cement with 1.05, Maruti Suzuki with 0.99.

Among most active underlying, Unitech witnessed an addition of 19.52 million of Open Interest in the June month futures contract, followed by Larsen & Toubro witnessing an addition of 0.06 million of Open Interest in the June  month contract; while Tata Steel witnessed contraction of 0.03 million of Open Interest in the June month futures contract, State Bank of India witnessed contraction 0.04 million of Open Interest in the June month contract and DLF witnessed contraction of 0.78 million  of Open Interest in the June month's future contract.