Nifty ends volatile day of trade with modest gain

The local benchmark, Nifty snapped its three day’s losing streak and ended the volatile day of trade with a modest gains on Thursday on the back of good corporate earning numbers and ease in food inflation. Earlier, the Indian equity market made a firm start tracking positive cues from the global indices. Sustained selling in rate sensitive realty dragged the market in the red in the mid-morning trade while, some of the Asian peers gave up their initial gains too weighing the sentiments. Afterwards, firm opening in European markets and ease in food inflation supported the market to regain its positive zone. The food price index declined at 7.47% during the week ending May 7, compared with a corresponding figure of 7.70% a week ago. Market traded range bound till mid afternoon and took U-turn and slipped into red as investors remained cautious on fear of further rate hike by RBI and also waited for some important results but once the Indian Inc started reporting good results market started climbing up. The companies like L&T, Ashok Leyland, Jet Air India and Lakshmi Vilas Bank all reported a sound Q4 and FY11 numbers meanwhile, Fertilizer stocks like National Fertilizers, Rashtriya Chemicals and Fertilizers and Nagarjuna Fertilisers and Chemicals ended the trade with a gain of in a range of 1.50-4 percent on report that Fertiliser companies may be allowed to hike maximum retail prices of Di-ammonium phosphate (DAP) by over Rs 600 per tonne as the fertiliser ministry is planning to move a Cabinet proposal in this regard. Finally, Nifty snapped the day’s trade with a modest gain.

On the global front, the US markets finally got a halt to their three days long losing streak, supported by the gains in the materials and energy stocks, while Asian equity indices finished the day’s trade on a mixed note on Thursday. Moreover, all the European counterparts were trading on a higher note where major indices, DAX, CAC and FTSE were trading with a gain of more than a percent in the trade at this point of time. Back home, on the sectoral front on the NSE, CNX Realty was the major laggard, losing 3.08% followed by Bank Nifty down 0.38% while, CNX Infra surged 0.50% and CNX IT rose 0.18%. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 1.44% and reached 20.41, while S&P Nifty closed at 5,428.10 haining 7.50 points or 0.14%.

The India VIX was down by 1.44% to 20.41 on Thursday compared to its previous close of 20.71 on Wednesday.  

The 50-share S&P CNX Nifty finally settled at 5,428.10 after gaining 7.50 points or 0.14%.

Nifty May 2011 futures closed at 5,433.95, at a premium of 5.85 points over spot closing of 5,428.10, while Nifty June 2011 futures were at 5,443.50 at a premium of 15.40 points over spot closing. The near month May 2011 derivatives contract expires on Thursday, May 26, 2011.

Nifty May futures saw addition of 4.47% or 1.16 million (mn) units, taking the total outstanding open interest (OI) to 27.14 mn units.

From the most active underlying, L&T May 2011 futures closed at a premium of 3.95 points at 1613.00 compared with spot closing of 1609.05. The number of contracts traded was 112,470.

SBI’s May 2011 futures were at a discount of 18.00 point at 2308.00 compared with spot closing of 2326.00. The number of contracts traded was 25,921.

Tata Motors May 2011 futures were at a premium of 0.90 points at 1154.95 compared with spot closing of 1154.05. The number of contracts traded was 15,773.

Tata Steel May 2011 futures were at a premium of 0.30 points at 563.50 compared with spot closing of 563.20. The number of contracts traded was 15,961.

ICICI Bank May 2011 futures were at a premium of 3.80 points at 1036.00 compared with spot closing of 1032.20. The number of contracts traded was 17,190.

For Nifty calls, 5500 strike price (SP) from the May series was the most active call with an addition of 0.29 mn or 3.66%.

Among Nifty puts, 5400 SP from the May month expiry was the most active put with an addition of 0.50 mn or 6.41%.

The maximum Call OI outstanding was at 5500 SP (8.47) and that for Puts at 5400 SP (8.31).

The respective Support and Resistance levels are: Resistance 5450.05 -- Pivot Point 5430.65 -- Support 5408.70.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.64 for May-month contracts.

The top five scrip’s with highest PCR on OI were JindalSWHL 2.00, MRF 2.00, Grasim 1.42, Hero Honda 1.40 and Ranbaxy 1.35.

Among most active underlying L&T witnessed an addition of 33.16% in the May month futures contract, followed by SBI which saw an addition of 3.62% of OI in the near month contract. RIL witnessed a contraction  of 3.98% in this month futures.