Bulls retaliate back; Nifty reclaims 5,300 mark

Bulls retaliated back on Friday and the local index S&P CNX Nifty snapped the day’s trade with a gain of over two percentage point after falling for three days, as global risk appetite got a boost from signs that Greece moving closer to avert a default. Globally, Asian markets closed with big gains after Greece managed to secure a deal with private creditors to accept a haircut on their bonds. Moreover, China’s consumer price index rose 3.2 percent in February, slower than the 4.5 percent on-year rise in January. The report was a welcome relief for markets looking to policymakers in Beijing to keep Asia’s biggest economy humming with more stimulus measures.

The market made a gap-up opening and regained its crucial 5,300 mark in early trade on firm Asian stocks. Moreover, metal share too supported the sentiments with Sterlite and Tata Steel gaining over 3 percent each in the initial trade. Tata Steel is looking to foray into merchant mining, a move that could mark the emergence of a new metals and mining powerhouse. Afterwards, the market extended initial gains to hit fresh intraday high in morning trade. The uptrend continued in the morning trade as investors were busy in buying beaten down fundamentally strong stocks. Meanwhile, Commerce Secretary Rahul Khullar said that exports grew by 4.3 percent year-on-year to $24.6 billion, while imports increased by 20.6 percent in February. Imports stood at $39.8 billion in February 2012, resulting in a trade deficit of $15.2 billion. Afterwards, the key benchmark regained strength after trimming intraday gains in early afternoon trade as European counters witnessed mixed opening. Meanwhile, FMCG and Software shares witnessed some profit booking. In the final hour of trade, the index regained its strength to hit intraday high with bank shares gained on hopes of reduction in the cash reserve ratio (CRR) by the Reserve Bank of India (RBI) in its forthcoming monetary policy review. Finally, Nifty snapped the day’s trade with a gain of over 100 points comfortably over its crucial 5,300 level.

Moreover, Multi Commodity Exchange (MCX) made a superb debut and snapped the session at Rs 1,296.70, a premium of 25.65% or higher by 264.70 points as against its issue price of Rs 1,032. Meanwhile, most of the sectoral indices on the NSE were settled in the green, CNX Metal remained the major gainer, up 5.15% followed by CNX PSU Bank up 3.68% and Bank Nifty up by 3.68% while CNX FMCG and CNX IT declined 0.18% and 0.07% in the trade, respectively. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 3.26% and reached 25.47.

The India VIX witnessed contraction of 3.27% at 25.47 as compared to its previous close of at 26.33 on Wednesday.

The 50-share S&P CNX Nifty gain 113.10 points or 2.17% to settle 5333.55Nifty March 2012 futures closed at 5,364.15 at a premium of 30.60 points over spot closing of 5,333.55, while Nifty April 2012 futures were at 5,401.10 at a premium of 67.55 points over spot closing. The near month March 2012 derivatives contract expires on Thursday, March 29, 2012. Nifty March futures saw an addition of 0.37 million (mn) units taking the total outstanding open interest (OI) to 25.27 mn units.

From the most active contract, Tata Motors March 2012 futures were at a discount of 0.45 point at 280.45 compared with spot closing of 280.90. The number of contracts traded was 12,011.

Hindalco Industries March 2012 futures were at a premium of 1.40 point at 135.85 compared with spot closing of 134.45. The number of contracts traded was 10,229.

DLF March 2012 futures were at a premium of 0.45 at 205.35 compared with spot closing of 204.90. The number of contracts traded was 10,740.

HDIL March 2012 futures were at a premium of 1.25 point at 104.85 compared with spot closing of 103.60. The number of contracts traded was 11,283.

Tata Steel March 2012 futures were at a discount of 0.40 point at 455.20 compared with spot closing of 455.60. The number of contracts traded was 17,837. 

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 an addition of 0.41 million open interest.

The maximum OI outstanding for Calls was at 5600 SP (5.16mn) and that for Puts was at 5200 SP (7.24mn).

The respective Support and Resistance levels are: Resistance 5353.36-- Pivot Point 5322.48 -- Support 5302.66.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.21 for March -month contract.

The top five scrips with highest PCR on OI were ABGSHIP 8.90, JP POWER 6.22, SCI 2.05, DRREDDY 1.93, and MARUTI 1.76

Among most active underlying, Suzlon witnessed an addition of 0.96 million of Open Interest in the March month futures contract followed by IFCI which witnessed contraction of 0.96 million of Open Interest in the near month contract. Meanwhile, LITL witnessed an addition of 2.37 million in the March month futures. Also, GVKPIL witnessed an addition of 3.04 million in Open Interest in the March month contract. Finally, RCOM witnessed an addition of 1.05 million of Open Interest in the near month futures contract.