The domestic index S&P CNX Nifty finally finished its jubilant run for the June series near its crucial 5,650 level as global cues remained strong, moreover the index performed superbly during the series and it closed higher by 235 points or 4.34 percent compared to last series. The Indian equity market made a positive starts tracking strong cues from global indices after Greece government approved the austerity plan and comfortably crossed the crucial 5,600 mark in initial trade but, profit booking witnessed in some of the blue chip stocks led the index to pare its initial gains of about 30 points, though the market remained firm and traded over its crucial 5,600 mark. The local index traded in the tight range but firmly till late afternoon as sharp fall in the weekly food inflation boosted the investors’ sentiments. India’s food inflation after soaring to its two and half month’s high level in the last week has fallen to 7.78% on annual basis for the week ended June 18, from an annual rise of 9.13% recorded in the last week. Benchmark moved sharply higher in the last half an hour of trade as buying activity intensified in realty and banking space and crossed the psychological 5,650 mark. But, in last few minute Nifty pared some of its gains and finally snapped the terrific day of trade with a gain of about one percent.
On the global front, The US markets extended their rally mood for the third straight day overnight while, all the Asian equity indices witnessed upswing on Thursday as investors continued their buying momentum after Greece approved a harsh austerity package to prevent the heavily indebted country from a massive default. The European counterparts were trading on a positive note 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 Realty surging the most and ending with a gain of 1.15% followed by CNX IT up 0.82%, CNX Bank up 0.82% and CNX Infra up by 0.54%. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, dropped 5.39% and reached 18.41, while S&P Nifty moved higher by 46.95 points to close at 5,647.40.
The India VIX witnessed a drop of 5.39% at 18.41 on Thursday as compared to its previous close of 19.46 on Wednesday.
The 50-share S&P CNX Nifty gained 46.95 points or 0.84% and settled at 5,647.40.
Nifty June 2011 futures closed at 5,647.80, at a premium of just 0.40 point over spot closing of 5,647.40, while Nifty July 2011 futures were at 5,652.55 at a premium of 5.15 points over spot closing. The near month June 2011 derivatives contract expired today. Nifty June futures saw contraction of 9.91% or 1.41 million (mn) units, taking the total outstanding open interest (OI) to 12.84 mn units.
From the most active underlying, SBI’s June 2011 futures closed at a premium of 7.40 points at 2404.40 compared with spot closing of 2397.00. The number of contracts traded was 30,197.
SBI’s July 2011 futures were at a premium of 14.70 point at 2411.70 compared with spot closing of 2397.00. The number of contracts traded was 21,068.
RIL June 2011 futures were at a premium of 3.35 points at 898.40 compared with spot closing of 895.05. The number of contracts traded was 23,611.
Titan June 2011 futures were at a premium of 0.60 at 214.30 compared with spot closing of 213.70. The number of contracts traded was 9,308.
ICICI Bank June 2011 futures were at a premium of 3.80 at 1094.55 compared with spot closing of 1090.75. The number of contracts traded was 16,759.
Among Nifty calls, 5700 SP from the July month expiry was the most active call with addition of 0.82 million or 32.33%.
Among Nifty puts, 5600 SP from the July month expiry was the most active put with addition of 1.11 million or 72.98%.
The maximum Call OI outstanding for Calls was at 5700 SP (3.38 mn) and that for Puts was at 5600 SP (2.63 mn).
The respective Support and Resistance levels are: Resistance 5668.16 -- Pivot Point 5637.13 -- Support 5616.36.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.24 for July -month contract.
The top five scrips with highest PCR on OI were ACC 3.53, Sun Pharma 2.88, Grasim 2.00, Sun TV 1.89 and Siemens 1.83.
Among most active underlying, SBI witnessed an addition of 27.20% of Open Interest (OI) in the July month futures contract followed by RIL witnessed an addition of 16.95% of Open Interest (OI) in the near month contract. Meanwhile ICICI Bank witnessed an addition of 18.49% of OI in the July month futures while Tata Motors witnessed an addition of 15.47% of OI in the July month futures.
