Nifty continues its bull run for fifth straight session; surpasses 5,500 mark

The local benchmark, Nifty extended its gains for fifth straight day and snapped the session with a gain of over a percent on Monday. However, the global cues remained unsupportive as the US markets wilted in Friday’s session after getting weak earnings number and most of the Asian markets ended the trade in the red today, though the domestic market managed to garner gain of over 50 points and crossed its crucial 5,500 mark. Earlier, market opened in the red on the back of weak Asian counterparts but turned positive, supported by rally in public sector undertaking (PSU) oil marketing companies and surpassed its crucial 5,500 level in the early trade. Decline in global crude oil prices too aided the sentiments. The index continued its bull run and touched intraday high breaching its crucial 5,550 level in afternoon trade as European stocks recovered from their initial lows as miners and car makers posted some of the strongest gains. But, it pared some of its gains as investors sold off their holdings in the realty sector. Afterwards, the local index traded in the tight range till the end. Meanwhile, PSU counter which includes all oil companies, up and down stream performed well, with ONGC surging over 4 percent. Other oil marketing companies viz. HPCL, BPCL and IOC too soared in the range of 3-6 percent after the hike in the price of diesel by Rs 3 per litre, kerosene by Rs 2 per litre and domestic liquid petroleum gas (LPG) by Rs 50 per cylinder. Simultaneously, the government removed the 5 per cent Customs duty on crude oil, brought down the import duty on petrol and diesel from 7.5 per cent to 2.5 per cent and reduced the excise duty on diesel by Rs 2.6 to Rs 2 per litre. Finally, Nifty snapped the day’s trade comfortably over its crucial 5,500 mark with a gain of over a percent.

On the global front, the US markets wilted in Friday’s session after getting weak earnings number, while all the Asian equity indices barring Shanghai Composite finished the day’s trade in the positive terrain on Monday amid fears of spreading European debt crisis after a ratings agency placed Italian banks on a review for a possible downgrade. However, European counterparts were trading on a higher note at this point of time. Back home, on the sectoral front on the NSE, Bank Nifty was the major gainer, surging 1.64% followed by CNX Infra up 1.45% and CNX IT up by 0.49% while, CNX Realty dipped 1.00%. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged 3.46% and reached 19.99, while S&P Nifty closed at 5,526.60 gaining 55.35 points or 1.01%. The markets registered volumes of over Rs 1.77 lakh crore while the turnover for NSE F&O segment remained on the lower side compared to Friday at over Rs 1.63 lakh crore.

The India VIX witnessed a gain of 3.46% at 19.99 on Monday as compared to its previous close of 19.32 on Friday.  

The 50-share S&P CNX Nifty gained 55.35 points or 1.01% and settled at 5,526.60.

Nifty June 2011 futures closed at 5,536.60, at a premium of 10.00 point over spot closing of 5,526.60, while Nifty July 2011 futures were at 5,550.90 at a premium of 24.30 points over spot closing. The near month June 2011 derivatives contract expires on Thursday, June 30, 2011. Nifty June futures saw addition of 3.13% or 0.68 million (mn) units, taking the total outstanding open interest (OI) to 22.57 mn units.

From the most active underlying, SBI’s June 2011 futures closed at a premium of 2.15 points at 2326.15 compared with spot closing of 2324.00. The number of contracts traded was 31,651.

ICICI Bank June 2011 futures were at a premium of 0.15 point at 1083.15 compared with spot closing of 1083.00. The number of contracts traded was 22,353.

Tata Steel  June 2011 futures were at a premium of 0.05 points at 589.45 compared with spot closing of 589.40. The number of contracts traded was 18,500.

ONGC June 2011 futures were at a premium of 1.00 at 284.75 compared with spot closing of 283.75. The number of contracts traded was 15,171.

Tata Motors June 2011 futures were at a premium of 0.50 at 977.00 compared with spot closing of 976.50. The number of contracts traded was 17,356.

Among Nifty calls, 5500 SP from the June month expiry was the most active call with contraction of 1.03 million or 14.67%.

Among Nifty puts, 5500 SP from the June month expiry was the most active put with addition of 1.81 million or 36.78%.

The maximum Call OI outstanding for Calls was at 5500 SP (5.99 mn) and that for Puts was at 5500 SP (6.75 mn).

The respective Support and Resistance levels are: Resistance 5574.75 -- Pivot Point 5504.50 -- Support 5456.35.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.50 for June -month contract.

The top five scrips with highest PCR on OI were BEML 3.00, Sun Pharma 2.04, Bharat Forge 2.00, Sun TV 1.79 and Areva T&D 1.33.

Among most active underlying, SBI witnessed an addition of 0.20% of Open Interest (OI) in the June month futures contract followed by RIL witnessed an addition of 1.59% of Open Interest (OI) in the near month contract. Meanwhile Tata Steel witnessed a contraction of 13.82% of OI in the June month futures while ICICI Bank witnessed an addition of 16.42% of OI in the June month futures.