Nifty snaps February F&O series up by 6.30%

The domestic index S&P CNX Nifty finally finished the February series on a good note recapturing its crucial 5,450 level as global cues remained positive, moreover the index performed well during the series and closed higher by about 325 points or 6.30 percent compared to last series. However, gains remained capped on the back of last two disappointing sessions of the February F&O series. Today, sentiments continue to remain bearish for second day in a row and the domestic index Nifty ended the volatile day of trade in the red on Thursday. Though, the index swung between negative and positive territory before closing and snapped the session below its crucial 5,500 mark with a cut of 0.40 percent on profit selling mainly in realty, metal and auto stocks.

Earlier, the Indian equity market made a soft start as investors remained on the safer side as today was the expiry of February F&O series. But, market immediately made a smart recovery and turned positive on the back of some short covering with Nifty recapturing its crucial 5,500 level after dipping below the psychological mark in the early trade. Afterwards, the benchmark widely followed the global cues which dragged the market below its crucial 5,500 mark once again. Market touched its intraday low near its crucial 5,450 mark in the early noon trade. Meanwhile, recent rally in crude oil prices too dampened the traders’ sentiments as surge in crude prices will impact significantly on the Indian economy as the nation imports more than 70% of the commodity for domestic requirements. In the mid noon trade, the market pared off its early losses on the back of a firm turnaround of the European markets and robust earnings of Ranbaxy. In the last hour of trade, the market hit the peak with Nifty at an intraday high of 5,537.40 level. Meanwhile, PSU OMCs rose on recent reports that the prices of auto and cooking fuels are likely to shoot up steeply in the first week of March 2012 after assembly elections. BPCL, HPCL and Indian Oil Corporation were up between 2-5%. However, losses in heavyweights capped the upside and the benchmark moved into the negative terrain in the last few minutes of trade. Finally, Nifty snapped the sluggish day of trade with a cut of about half a percentage point.

On the global front, the US markets closed lower overnight while, stocks in Asian region fell on Thursday as investors remained concern that the rescue package of $170 billion announced for Greece on Tuesday will not be sufficient to keep the debt-laden country from eventually defaulting. Moreover, most of 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 red, CNX Realty remained the major loser, down 2.43% followed by CNX Media down 1.44% and CNX Metal down by 1.13% while CNX FMCG and CNX Energy surged 0.61% and 0.73% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, tumbled 9.21% and reached 24.33.

The India VIX witnessed a contraction of 2.47% at 24.33 as compared to its previous close of at 26.80 on Wednesday.

The 50-share S&P CNX Nifty declined 22.05 points or 0.40% to settle at 5,483.30.

Nifty February 2011 futures closed at 5,488.25 at a premium of 4.95 points over spot closing of 5,483.30, while Nifty March 2011 futures were at 5,539.00 at a premium of 55.70 points over spot closing. The near month February 2012 derivatives contract expired today i.e. February 23, 2012. Nifty February futures saw contraction of 3.59 million (mn) units taking the total outstanding open interest (OI) to 12.25 mn units.

From the most active contract, DLF March 2011 futures were at a discount of 2.75 point at 235.05 compared with spot closing of 237.80. The number of contracts traded was 16,705.

RIL March 2011 futures were at a premium of 18.00 point at 850.60 compared with spot closing of 832.60. The number of contracts traded was 19,912.

ICICI Bank March 2011 futures were at a premium of 11.00 points at 955.00 compared with spot closing of 944.00. The number of contracts traded was 22,973.

DLF February 2011 futures were at a discount of 4.25 point at 233.55 compared with spot closing of 237.80. The number of contracts traded was 16,677.

SBI March 2011 futures were at a premium of 10.00 point at 2280.00 compared with spot closing of 2270.00. The number of contracts traded was 28,677.

Among Nifty calls, 5600 SP from the February month expiry was the most active call with an addition of 2.07 million open interest. 

Among Nifty puts, 5400 SP from the February month expiry was the most active put with an addition of 0.36 million open interest.

The maximum OI outstanding for Calls was at 5600 SP (8.25 mn) and that for Puts was at 5400 SP (1.04 mn).

The respective Support and Resistance levels are: Resistance 5526.86-- Pivot Point 5493.83-- Support 5450.26

The Nifty Put Call Ratio (PCR) OI wise stood at 1.89 for February -month contract.

The top five scrips with highest PCR on OI were Ruchi Soya 20.00, Canara Bank 10.80, Patel Engineering 10.25, Oriental Bank 9.00 and Onmobile 7.00.

Among most active underlying, Tata Motors witnessed a contraction of 7.06 million of Open Interest in the February month futures contract followed by Reliance Communication witnessed a contraction of 1.01 million of Open Interest in the near month contract. Meanwhile Sterlite Industries witnessed an addition of 1.13 million in the February month futures. Further, DLF witnessed a contraction of 0.32 million in Open Interest in the March month contract. Finally, Bharti Airtel witnessed a contraction of 5.09 million of Open Interest in the near month futures contract.