Nifty adds over half a percent; regains 5,300 mark

The local benchmark, Nifty witnessed a decent day of trade and snapped the session with a gain of over half a percent on Thursday. However, the global cues continued to remain unsupportive as the US markets lost its way in the late hours overnight after Fed trimmed its economy growth forecast and most of the Asian markets ended the trade in the red, though the domestic market managed to garner gain of over 40 points and regained its crucial 5,300 mark. Earlier, market opened in the red on the back of weak global cues but turned positive, supported by the gains in the heavyweights like Reliance Industries, Wipro, SBI etc. Market continued bull run till mid noon trade and touched its intraday high despite the rise in inflation, food inflation has surged again and stood at 9.13% versus 8.96% (WoW) for week ended June 11, Primary articles inflation (WoW) has come in at 12.62% versus 12.86%, while fuel group remained unchanged at 12.84% (WoW). Afterwards, the index fell from its high levels by about 30 points as weak opening in European counterparts dampened the investors’ sentiments. But, the benchmark got strong support near its crucial 5,300 mark and again started moving up. Meanwhile, PSU oil marketing companies viz HPCL, BPCL and IOC edged higher in the trade on report that the Oil Ministry is seeking to scrap customs duty on crude, excise duty on diesel. If duty stays then the ministry is seeking Rs 4 per liter price hike in diesel, Rs 9 per liter price hike in kerosene and Rs 150 hike in LPG while, sugar stocks surged ahead of a meeting of Empowered Group of Ministers on food to take a call on allowing export of more sugar. Finally, market snapped the day’s trade comfortably over its crucial 5,300 mark with a gain of over half a percent.

On the global front, the US markets slipped lower overnight, disappointed by Fed lowering the economic forecasts, while Most of the Asian equity indices finished the day’s trade in the negative terrain on Thursday as investors booked profit after a two-day rally. Moreover, all the European counterparts were trading on a lower note, where major indices, DAX and CAC were trading with a cut of more than a percent in the trade at this point of time. Back home, on the sectoral front on the NSE, CNX IT was the major gainer, surging 0.93% followed by Bank Nifty up 0.49% and CNX Infra up by 0.32% while, CNX Realty dipped 0.51%. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 6.65% and reached 19.50, while S&P Nifty closed at 5,320.00 gaining 41.70 points or 0.79%.

The India VIX shed 6.65% at 19.50 on Thursday as compared to its previous close of 20.89 on Wednesday.  

The 50-share S&P CNX Nifty gained 41.70 points or 0.79% and settled at 5,320.00.

Nifty June 2011 futures closed at 5,319.00, at a discount of 1.00 point over spot closing of 5,320.00, while Nifty July 2011 futures were at 5,330.00 at a premium of 10.00 points over spot closing. The near month June 2011 derivatives contract expires on Thursday, June 30, 2011.

Nifty June futures saw addition of 4.50% or 1.11 million (mn) units, taking the total outstanding open interest (OI) to 26.01 mn units.

From the most active underlying, Titan June 2011 futures closed at a discount of 7.75 points at 221.75 compared with spot closing of 229.50. The number of contracts traded was 14,487.

RIL June 2011 futures were at a premium of 0.05 point at 870.80 compared with spot closing of 870.75. The number of contracts traded was 23,876.

SBI’s June 2011 futures were at a premium of 2.25 points at 2167.50 compared with spot closing of 2165.25. The number of contracts traded was 17,632.

Orchid Chemicals June 2011 futures were at a discount of 0.75 at 252.60 compared with spot closing of 253.35. The number of contracts traded was 17,543.

Tata Motors June 2011 futures were at a premium of 1.65 at 946.50 compared with spot closing of 944.85. The number of contracts traded was 17,365.

Among Nifty calls, 5300 SP from the June month expiry was the most active call with contraction of 0.51 million or 9.74%.

Among Nifty puts, 5300 SP from the June month expiry was the most active put with addition of 1.74 million or 28.44%.

The maximum Call OI outstanding for Calls was at 5300 SP (4.81 mn) and that for Puts was at 5300 SP (7.86 mn).

The respective Support and Resistance levels are: Resistance 5349.65 -- Pivot Point 5300.95 -- Support 5271.30.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.01 for June -month contract.

The top five scrips with highest PCR on OI were Asian Paints 3.00, Bharat Forge 2.00, Sun Pharma 1.68, Sun TV 1.59 and PNB 1.50.

Among most active underlying, GTL witnessed an addition of 26.28% of Open Interest (OI) in the June month futures contract followed by RIL witnessed a contraction of 5.87% of Open Interest (OI) in the near month contract. Meanwhile SBI witnessed a contraction of 0.97% of OI in the June month futures while Tata Motors witnessed an addition of 2.33% of OI in the June month futures.