NSE benchmark index Nifty witnessed rally on seventh straight session and snapped the trade with a gain of about a percent on the back of strong global cues, sustained buying by foreign investors too supported the sentiments. Moreover, the index traded superbly throughout the day and crossed its crucial 5,600 mark. Earlier, the Indian equity market made a firm start tracking positive cues from global indices. Benchmark continued their relentless bull run till noon trade and crossed its crucial 5,600 mark on broad based buying witnessed on the NSE. In the early noon trade, market trimmed some of its gains as international crude oil prices rose over $93 per barrel due to which PSU oil marketing companies viz; BPCL, HPCL and IOC declined during the trade and snapped the session with a cut of over a percent. Afterwards, the index regained its strength taking positive cues from the rally in European counterparts and continued its bull run till end. Meanwhile, sugar stocks like Shree Renuka Sugars, Balrampur Chini Mills, EID Parry and Rana Sugars all traded high and ended the trade with a gain in the range of 4-7 percent on reports that the government on June 28, 2011 has issued a formal order for exports of an additional 5 lakh tonnes of sugar. Finally, Nifty snapped the day’s trade just over its crucial 5,600 mark with a gain of more than 50 points.
On the global front, the US markets extended their rally mood for the second consecutive day and all the major indices surged by over a percent overnight while, most of the Asian equity indices finished the trade in the positive terrain on Thursday on growing optimism about a solution to Greece’s debt crisis. The European counterparts were trading on a positive note where major indices like CAC, DAX and FTSE garnered gain of more than 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 Bank Nifty surging the most and ending with a gain of 0.90% followed by CNX IT up 0.69%, CNX Realty up 0.46% and CNX Infra up by 0.40%. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, slipped 0.15% and reached 19.46, while S&P Nifty moved higher by 55.15 points to close at 5,600.45.
The India VIX witnessed a drop of 0.15% at 19.46 on Wednesday as compared to its previous close of 19.49 on Tuesday.
The 50-share S&P CNX Nifty gained 55.15 points or 0.99% and settled at 5,600.45.
Nifty June 2011 futures closed at 5,608.00, at a premium of just 7.55 point over spot closing of 5,600.45, while Nifty July 2011 futures were at 5,629.95 at a premium of 29.50 points over spot closing. The near month June 2011 derivatives contract expires on Thursday, June 30, 2011. Nifty June futures saw addition of 10.76% or 1.76 million (mn) units, taking the total outstanding open interest (OI) to 18.16 mn units.
From the most active underlying, SBI’s June 2011 futures closed at a discount of 3.15 points at 2383.00 compared with spot closing of 2386.15. The number of contracts traded was 23,646.
Tata Motors June 2011 futures were at a premium of 2.45 point at 998.50 compared with spot closing of 996.05. The number of contracts traded was 21,265.
RIL June 2011 futures were at a premium of 0.60 points at 887.60 compared with spot closing of 887.00. The number of contracts traded was 23,702.
ICICI Bank June 2011 futures were at a premium of 1.30 at 1091.30 compared with spot closing of 1090.00. The number of contracts traded was 15,839.
Tata Steel June 2011 futures were at a premium of 0.55 at 602.50 compared with spot closing of 601.95. The number of contracts traded was 14,303.
Among Nifty calls, 5600 SP from the June month expiry was the most active call with addition of 0.42 million or 5.57%.
Among Nifty puts, 5600 SP from the June month expiry was the most active put with addition of 2.87 million or 65.06%.
The maximum Call OI outstanding for Calls was at 5600 SP (8.06 mn) and that for Puts was at 5600 SP (7.29 mn).
The respective Support and Resistance levels are: Resistance 5617.23 -- Pivot Point 5591.86 -- Support 5575.08.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.57 for June -month contract.
The top five scrips with highest PCR on OI were Areva T&D 4.00, Sun Pharma 2.10, Bharat Forge 2.00, Exide Industries 2.00 and Sun TV 1.86.
Among most active underlying, SBI witnessed a contraction of 4.81% of Open Interest (OI) in the June month futures contract followed by RIL witnessed a contraction of 16.20% of Open Interest (OI) in the near month contract. Meanwhile Tata Motors witnessed a contraction of 15.23% of OI in the June month futures while Tata Steel witnessed an addition of 5.69% of OI in the June month futures.
