NSE benchmark index Nifty extended its bull run for sixth straight session and snapped the trade with a gain of about 20 points. However, the index traded in the negative terrain in first half of the trade while, recovery in second half helped benchmark to snap the day’s trade with a gain of over 0.30 percent. Earlier, the Indian equity market made a firm start tracking overnight gains in the US market. But, immediately pared all its gain and turned red as most of the Asian counterparts reversed their initial gains and profit booking in oil & gas counter on domestic front too dampened the sentiments. Market continued its downfall and touched its intraday low below its crucial 5,500 level in mid morning trade as international crude oil prices edged higher in the morning. But market got strong support near its psychological 5,500 mark and started moving upward and regained its green terrain in mid morning trade as crude oil prices again cooled a bit. Meanwhile, PSU OMC’s like Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Indian Oil Corporation ended the trade with cut in the range of 1.5-2 percent on account of profit booking post its smart rally in the previous two sessions while, Tyre stocks remained jubilant during the trade and Ceat surged the most gaining over 16% followed by JK Tyre up by 7%, MRF gained 4% and Apollo Tyres was up by 3% on the buzz that Commerce Ministry has proposed removal of 20% duty on the rubber up to 1 lakh tonne due to rising domestic rubber prices. 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 made a good bounce back on Monday on signs that a widespread European debt crisis could be averted, while Most of the Asian equity indices reversed their initial losses and finished in the positive terrain on Tuesday. However, European counterparts were trading mostly higher at this point of time. Back home, on the sectoral front on the NSE, CNX Infra was the major gainer, surging 0.77% followed by Bank Nifty and CNX Realty while, CNX IT dipped 0.17%. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 2.50% and reached 19.49, while S&P Nifty closed at 5,545.30 gaining 18.70 points or 0.34%.
The India VIX witnessed a drop of 2.50% at 19.49 on Tuesday as compared to its previous close of 19.99 on Monday.
The 50-share S&P CNX Nifty gained 18.70 points or 0.34% and settled at 5,545.30.
Nifty June 2011 futures closed at 5,546.00, at a premium of just 0.70 point over spot closing of 5,545.30, while Nifty July 2011 futures were at 5,565.00 at a premium of 19.70 points over spot closing. The near month June 2011 derivatives contract expires on Thursday, June 30, 2011. Nifty June futures saw addition of 13.56% or 2.64 million (mn) units, taking the total outstanding open interest (OI) to 22.19 mn units.
From the most active underlying, SBI’s June 2011 futures closed at a discount of 2.00 points at 2338.00 compared with spot closing of 2340.00. The number of contracts traded was 25,753.
ICICI Bank June 2011 futures were at a premium of 3.25 point at 1080.40 compared with spot closing of 1077.15. The number of contracts traded was 17,723.
RIL June 2011 futures were at a premium of 1.50 points at 873.00 compared with spot closing of 871.50. The number of contracts traded was 20,708.
Tata Steel June 2011 futures were at a premium of 1.70 at 588.50 compared with spot closing of 586.80. The number of contracts traded was 14,973.
Tata Motors June 2011 futures were at a discount of 0.15 at 983.45 compared with spot closing of 983.60. The number of contracts traded was 17,223.
Among Nifty calls, 5600 SP from the June month expiry was the most active call with addition of 0.38 million or 5.28%.
Among Nifty puts, 5500 SP from the June month expiry was the most active put with addition of 0.92 million or 14.15%.
The maximum Call OI outstanding for Calls was at 5600 SP (7.64 mn) and that for Puts was at 5500 SP (7.44 mn).
The respective Support and Resistance levels are: Resistance 5570.28 -- Pivot Point 5533.31 -- Support 5508.33.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.56 for June -month contract.
The top five scrips with highest PCR on OI were Sun Pharma 2.39, Tata Power 2.05, Bharat Forge 2.00, Exide Industries 2.00 and NMDC 2.00.
Among most active underlying, SBI witnessed an addition of 0.15% of Open Interest (OI) in the June month futures contract followed by RIL witnessed an addition of 0.27% of Open Interest (OI) in the near month contract. Meanwhile Tata Motors witnessed a contraction of 1.00% of OI in the June month futures while ICICI Bank witnessed an addition of 8.96% of OI in the June month futures.
