Nifty continues bullish run for fifth consecutive session

Domestic index S&P CNX Nifty continued its upward journey for the fifth consecutive session on Monday as sentiments got underpinned after the unexpectedly better than expected US jobs data dimmed the fears of recession in the world’s largest economy. The Nifty snapped the day’s trade with a gain of over half a percentage point reclaiming its crucial 5,350 mark, led by banks, capital goods and metals stocks. However, the second half of trade was quite volatile due to fall in index heavyweight Reliance Industries. European markets also dampened the spirit of market a bit as Greek debt deal has not happened yet over the last weekend.

Earlier, domestic benchmark made a gap-down opening on the back of encouraging US jobs data. A fall in US unemployment rate led to bullish sentiments across global markets. Afterwards, market traded firm till late morning session as sentiments were supported by Metal stocks, which surged after LMEX, a gauge of six metals traded on the London Metal Exchange jumped 2.45% on February 3, 2012. Moreover, shares of cement companies surged triggered by good dispatches data in January 2012. But, in the noon trade the index took wild swing and Nifty pared most of its early gains following weakness in European peers. Traders also took some profits off the table after the recent rally in Indian equities. However, Nifty somehow managed to escape the wild swings in the dying hours supported by stocks from the high beta - Realty, Capital Goods and Metal counters led the late recovery for the markets as they rallied in the range of 1.5-4 percent. Meanwhile, the railway related stocks like Kernex Microsystems, BEML, Stone, India and Texmaco surged over 5% percent each after the ministry of finance approved Rs 3,000-crore loan to the Indian Railways. Finally, Nifty snapped the day’s trade recapturing 5,350 mark with a gain of over half a percentage point.

On the global front, the US markets staged a sharp rally on Friday while, sentiments remained jubilant in Asian region and most of the indices snapped the session in the positive terrain on Monday, tracking gains on Wall Street after strong US jobs data but worries about Greece’s unresolved debt crisis capped the gains. However, all the European counterparts were trading in the negative terrain at this point of time. Back home, most of the sectoral indices on the NSE were settled in the green, CNX Realty remained the major gainer, up 4.16% followed by CNX PSU Bank up 2.63% and Bank Nifty up by 1.34% while CNX Energy and CNX FMCG declined 0.25% and 0.14% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged 2.20% and reached 24.62.

The India VIX witnessed an addition of 1.68% at 24.09 as compared to its previous close of at 23.69 on Friday.

The 50-share S&P CNX Nifty gained 35.80 points or 0.67% to settle at 5361.65.

Nifty February 2012 futures closed at 5,366.85 at a premium of 5.20 points over spot closing of 5,361.65, while Nifty March 2012 futures were at 5,392.55 at a premium of 30.95 points over spot closing. The near month February 2012 derivatives contract expires on Thursday, February 23, 2012. Nifty February futures saw an addition of 1.71 million (mn) units taking the total outstanding open interest (OI) to 24.24 mn units.

From the most active contract by contract value, Tata Motors February 2012 futures were at a discount of 0.10 point at 251.90 compared with spot closing of 252.00. The number of contracts traded was 14,605.

DLF February 2012 futures were at a discount of 0.25 point at 234.75 compared with spot closing of 235.00. The number of contracts traded was 15,204.

Tata Steel February 2012 futures were at a premium of 2.45 point at 468.15 compared with spot closing of 465.70. The number of contracts traded was 16,694.

ICICI Bank February 2012 futures were at a discount of 0.80 point at 925.40 compared with spot closing of 926.20. The number of contracts traded was 25,274.

RIL February 2012 futures were at a premium of 2.70 point at 835.10 compared with spot closing of 832.40. The number of contracts traded was 13,822.

Among Nifty calls, 5400 SP from the February month expiry was the most active call with an addition of 0.67 million open interest.

Among Nifty puts, 5200 SP from the February month expiry was the most active put with an addition of 11.07 million open interest.

The maximum OI outstanding for Calls was at 5400 SP (5.41 mn) and that for Puts was at 5200 SP (7.20 mn).

The respective Support and Resistance levels are: Resistance 5392.05-- Pivot Point 5359.65-- Support 5329.25.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.68 for February-month contract.

The top five scrips with highest PCR on OI were Mcleodruss 24.00, Raymond 20.00, Areva T&D 18.67, IOB 5.00 and Polaris 4.82.

Among most active underlying, Unitech witnessed a contraction of 1.09 million of Open Interest in the February month futures contract followed by Tata Motors which witnessed an addition of 0.73 million of Open Interest in the near month contract. Meanwhile JP Associate witnessed a contraction of 0.79 million in the February month futures. Also, Hindalco witnessed contraction of 7.86 million in Open Interest in the February month contract. Finally, DLF witnessed a contraction of  0.77 million of Open Interest in the near month futures contract.