Nifty witnesses triple digit rally ahead of EGoM meet on fuel

The local benchmark, Nifty witnessed an exceptional day of trade on Friday and regained its crucial 5,450 level after hitting a triple digit rally. Benchmark witnessed a terrific run throughout the day’s trade and garnered gain of more than 150 points. The market got a strong start and remained on a northbound journey since early trade on the back of supportive cues from Asian markets while, sentiments remained burly ahead of Empowered Group of Ministers (EGoM) meet on fuel price revision. Market extended its gains as sustained buying was witnessed in almost all the key heavyweights and broader indices. Sharp fall in crude oil prices in international market and strong European cues on stability in Greece too aided the sentiments. Benchmark continued its bull run till end as PSU oil marketing companies traded superbly with decent gains on the back of plunge in international crude prices and expectation of EGoM taking a decision to raise domestic crude prices moreover, aviation stocks too remained in demand on the sharp fall in crude oil prices. Meanwhile, Sugar stocks like, Balrampur Chini, EID Parry, Shree Renuka Sugar and Rana Sugar all edged higher after the centre decided to allow export of an additional five lakh tonnes of sugar under the open general license (OGL). Finally, Nifty ended the day’s trade near its intraday high with a gain of about three percent.

On the global front, the US markets bounced back in late trade overnight but still could not manage an all green close. However, all the Asian equity indices barring Taiwan Weighted finished the day’s trade in the positive terrain on the last trading day of the week, led by Chinese Shanghai. The European counterparts were trading on a positive note where major indices like CAC, DAX and FTSE have garnered gain of about a percent at this point of time. Back home, broad based buying supported all sectoral indices on the NSE to settle in the positive territory with CNX Realty surging the most and ending with a gain of about four percent followed by CNX IT up 3.19%, Bank Nifty up 3.12% and CNX Realty up by 2.98%. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 0.92% and reached 19.32, while S&P Nifty moved higher by 151.25 points to close at 5,471.25.

The India VIX  shed 0.92% at 19.32 on Friday as compared to its previous close of 19.50 on Thursday.  

The 50-share S&P CNX Nifty gained 151.25 points or 2.84% and settled at 5,471.25.

Nifty June 2011 futures closed at 5,484.00, at a premium of 12.75 point over spot closing of 5,471.25, while Nifty July 2011 futures were at 5,497.00 at a premium of 25.75 points over spot closing. The near month June 2011 derivatives contract expires on Thursday, June 30, 2011. Nifty June futures saw addition of 9.52% or 2.31 million (mn) units, taking the total outstanding open interest (OI) to 26.59 mn units.

From the most active underlying, SBI’s June 2011 futures closed at a premium of 3.00 points at 2292.00 compared with spot closing of 2289.00. The number of contracts traded was 39,600.

Tata Steel June 2011 futures were at a premium of 2.10 point at 581.10 compared with spot closing of 579.00. The number of contracts traded was 26,027.

RIL June 2011 futures were at a premium of 2.50 points at 871.00 compared with spot closing of 868.50. The number of contracts traded was 32,002.

ICICI Bank June 2011 futures were at a premium of 2.30 at 1064.00 compared with spot closing of 1061.70. The number of contracts traded was 23,532.

Titan June 2011 futures were at a discount of 1.45 at 214.50 compared with spot closing of 215.95. The number of contracts traded was 10,045.

Among Nifty calls, 5500 SP from the June month expiry was the most active call with contraction of 0.59 million or 7.46%.

Among Nifty puts, 5400 SP from the June month expiry was the most active put with addition of 4.90 million or 110.68%.

The maximum Call OI outstanding for Calls was at 5500 SP (7.42 mn) and that for Puts was at 5400 SP (9.33 mn).

The respective Support and Resistance levels are: Resistance 5518.26 -- Pivot Point 5430.83 -- Support 5383.81.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.28 for June -month contract.

The top five scrips with highest PCR on OI were Areva T&D 4.00, Sun Pharma 1.84, Sun TV 1.76, Dr Reddy 1.39 and Asian Paints 1.17.

Among most active underlying, SBI witnessed a contraction of 8.45% of Open Interest (OI) in the June month futures contract followed by RIL witnessed a addition of 6.28% of Open Interest (OI) in the near month contract. Meanwhile Tata Steel witnessed a contraction of 21.11% of OI in the June month futures while ICICI Bank witnessed an addition of 11.00% of OI in the June month futures.