Indian benchmark index -- Nifty -- ended the session with modest gains, amid a volatile trading. Market snapped the session over its crucial 5,350 level with a gain of about 0.40 percentage point. Moreover, liquidity post ECB’s second tranche of long term refinancing operation tried to keep the market buoyant, though concerns like rising oil prices that alleviated hopes of rate cuts in forthcoming monetary policy by RBI still persist. Global cues remained supportive as US market edged higher overnight on improvement on the jobs front while, all the Asian peers ended higher on the back of upbeat sales for US retailers on Thursday, which helped the regional mood.
Earlier, Indian benchmarks fell in early trade after opening higher, with ONGC leading the drop after a muted response to a government stake sale. The index touched its intraday low in the morning trade as selling persists due to the uncertainty over the results of the UP elections and the forthcoming important Budget. But, the benchmark came off lows later as the green signals on the global front eased the worries of domestic investors. Meanwhile, stocks of auto makers attracted increased buying in mid morning trade support largely on the back of rise in their sale in February. The benchmark traded with conviction in the late morning trade and touched its intraday high in the early noon trade near its crucial 5,400 level, as sentiments were supported by cement sector stocks after major companies reported decent monthly sales numbers. Afterwards, market witnessed a steep fall of about 60 points and turned red breaching its crucial 5,350 level as high beta Realty index plunged over two percent after heavyweight DLF continued to reel under immense selling pressure on reports flagged concerns about the company’s financial health and limited the upside chances for the frontline indices. Further, the market traded range-bound near its neutral line but, in the end market negotiated a positive closing recapturing its crucial 5,350 mark.
Meanwhile, CNX Media remained the major gainer, up 2.19% followed by Bank Nifty up 1.41% and CNX PSU Bank up by 0.99% while CNX Realty and CNX PSE declined 2.28% and 0.70% respectively on the NSE. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged 0.61% and reached 27.84.
The India VIX witnessed an addition of 0.61% at 27.84 as compared to its previous close of at 27.67 on Thursday.
The 50-share S&P CNX Nifty gain 19.60 points or 0.37% to settle at 5359.35
Nifty March 2012 futures closed at 5,391.50 at a premium of 32.15 points over spot closing of 5,359.35, while Nifty April 2012 futures were at 5,426.30 at a premium of 66.95 points over spot closing. The near month March 2012 derivatives contract expires on Thursday, March 29, 2012. Nifty March futures saw contraction of 0.46 million (mn) units taking the total outstanding open interest (OI) to 25.12 mn units.
From the most active contract, Tata Motors March 2012 futures were at a premium of 1.65 point at 268.65 compared with spot closing of 267.00. The number of contracts traded was 11,131.
Hindalco Industries March 2012 futures were at a premium of 1.70 point at 149.10 compared with spot closing of 147.40. The number of contracts traded was 12,096.
DLF March 2012 futures were at a premium of 2.40 points at 205.10 compared with spot closing of 202.70. The number of contracts traded was 26,839.
HDIL March 2012 futures were at a premium of 1.40 point at 105.80 compared with spot closing of 104.40. The number of contracts traded was 12,347.
Tata Steel March 2012 futures were at a premium of 0.20 point at 467.20 compared with spot closing of 467.00. The number of contracts traded was 13,002.
Among Nifty calls, 5600 SP from the March month expiry was the most active call with an addition of 0.03 million open interest.
Among Nifty puts, 5200 SP from the March month expiry was the most active put with contraction of 0.05 million open interest.
The maximum OI outstanding for Calls was at 5600 SP (4.49mn) and that for Puts was at 5200 SP (7.37mn).
The respective Support and Resistance levels are: Resistance 5396.25 -- Pivot Point 5355.65 -- Support 5318.75.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.36 for March -month contract.
The top five scrips with highest PCR on OI were JP POWER 4.63, CANBK 2.00, SCI 1.88, SKUMARSYNF 1.86 and MARUTI 1.80
Among most active underlying, Suzlon witnessed contraction of 3.33 million of Open Interest in the March month futures contract followed by IFCI which witnessed contraction of 1.66 million of Open Interest in the near month contract. Meanwhile R.COM witnessed contraction of 0.18million in the March month futures. Also, Tata Motors witnessed contraction of 1.89 million in Open Interest in the March month contract. Finally, UNITECH witnessed an addition of 0.70 million of Open Interest in the near month futures contract.
