Greek bailout deal helps Nifty to surpass 5,600 level

Indian benchmark extended their northbound journey and Nifty ended the day’s trade over its crucial 5,600 mark with a gain of 0.80 percent, as investors cheered the long-awaited agreement for a crucial second bailout package for debt-stricken Greece, ahead of the first release of India's new annual CPI inflation data. Euro-zone finance ministers concluded 13 hours of talks by sealing a bailout for the country that will resolve its immediate financing needs with a 130-billion-euro rescue package and measures to cut its debt to 121 percent of GDP by 2020. Back home, index heavyweight Reliance Industries (RIL), banking and capital goods stocks too boosted the sentiments. Moreover, foreign institutional investors continued to remain buyers in the Indian markets. As per the provisional data, FIIs bought shares worth net Rs 536.49 crore on Friday. They bought shares worth Rs 12149.25 crore this month so far.

Earlier, the Indian equity market made a cautious start following weakness in Asian counters but, market immediately gathered strength supported by sustained buying by foreign funds. Moreover, telecom stocks like Idea Cellular, Tata Communication, Bharti Airtel and Reliance Communication too supported the sentiments and edged higher after TRAI issued draft guidelines for the sale and allocation of mobile phone frequency. The new TRAI policy aims at simplifying licensing rules, providing greater transparency, and encouraging mergers and acquisitions. Nifty surpassed its crucial 5,600 mark in early noon trade supported by index heavyweights; RIL zoomed by nearly 3 percent while, ONGC rallied about 4 percent on reports that the overseas investors have assured the government that they would buy the proposed five percent stake in the company. Moreover, BHEL was the top Nifty gainer, up 4.5 percent on reports that the Cabinet Committee on Economic Affairs (CCEA) will impose import duty at the rate of 20 percent on the power generation equipment for projects above 1,000 megawatts (MW). Moreover, shares of real estate companies continued their upward rally, on expectation of reduction in interest rates, will increase the demand for properties going forward. But, in the mid morning trade, market trimmed its gains and lost its psychological 5,600 mark as European counters opened on a weak note. Meanwhile, inflation based on the all India Consumer Price Index stood at 7.65% in January. While food and beverages reported a moderate rate of price rise of 4.11% year-on-year in January, the inflation numbers for fuel and light, and clothing, bedding and footwear segments were in double-digits. But, in the last leg of trade, market regained its strength and recaptured its important 5,600 mark. Finally, Nifty snapped the day’s trade with a gain of over 40 points.

On the global front, the US markets remained closed on Monday, unable to give any cue to the other global markets while, most of the Asian equity indices pared their losses in the late trade on Tuesday after euro zone policy makers agreed to a second bailout package for Greece in marathon talks that went deep into the Brussels night. However, all the European counterparts were trading on a negative note where major indices like CAC, DAX and FTSE were trading with a cut of over half a percent at this point of time. Back home, broad based buying supported most of the sectoral indices on the NSE to settle in the positive territory with CNX Realty surging the most and ending with a gain of 4.67% followed by CNX Energy up 1.78% and CNX PSU Bank up 1.17% while, CNX MNC down by 0.48% was the lone loser on the NSE sectoral indices. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, zoomed 8.56% and reached 26.25.

The India VIX witnessed an addition of 8.56% at 26.25 as compared to its previous close of at 24.18 on Friday.

The 50-share S&P CNX Nifty accumulated 42.85 points or 0.77% to settle at 5,607.15.

Nifty February 2012 futures closed at 5,622.15 at a premium of 15.00 points over spot closing of 5,607.15, while Nifty March 2012 futures were at 5,663.70 at a premium of 56.55 points over spot closing. The near month February 2012 derivatives contract expires on Thursday, February 23, 2012. Nifty February futures saw contraction of 5.78 million (mn) units taking the total outstanding open interest (OI) to 16.42 mn units.

From the most active contract, Tata Motors February 2012 futures were at a premium of 1.80 points at 272.45 as compared with spot closing of 270.65. The number of contracts traded was 18,879.

DLF February 2012 futures were at a premium of 1.65 point at 259.65 compared with spot closing of 258.00. The number of contracts traded was 17,801.

Tata Steel February 2012 futures were at a premium of 4.20 point at 493.95 compared with spot closing of 489.75. The number of contracts traded was 30,418.

Reliance Industries February 2012 futures were at a premium of 3.20 point at 843.60 compared with spot closing of 840.40. The number of contracts traded was 37,925.

ICICI Bank February 2012 futures were at a premium of 4.85 point at 994.90 compared with spot closing of 992.05. The number of contracts traded was 25,648.

Among Nifty calls, 5600 SP from the February month expiry was the most active call with an addition of 0.29 million open interest. 

Among Nifty puts, 5400 SP from the February month expiry was the most active put with an addition of 0.68 million open interest.

The maximum OI outstanding for Calls was at 5600 SP (6.07 mn) and that for Puts was at 5400 SP (7.11 mn).

The respective Support and Resistance levels are: Resistance 5631.85-- Pivot Point 5596.8-- Support 5572.1

The Nifty Put Call Ratio (PCR) OI wise stood at 2.48 for February -month contract.

The top five scrips with highest PCR on OI were Patel Engineering 13.67, Canara Bank 10.80, Ruchi Soya  10.00, OnMobile 6.80 and Federal bank  6.00.

Among most active underlying, Tata Motors witnessed a contraction of 0.54 million of Open Interest in the February month futures contract followed by Reliance Communication witnessed a contraction of 0.73 million of Open Interest in the near month contract. Meanwhile IDFC witnessed a contraction of 0.35 million in the February month futures. Further, DLF witnessed a contraction of 0.28 million in Open Interest in the February month contract. Finally, Bharti Airtel witnessed a contraction of 0.38 million of Open Interest in the near month futures contract.