Nifty ends with modest gains post three sessions carnage

After massive fall of over 200 points or 3.80 percent in previous three sessions post major events like union budget and monetary policy, key benchmark Nifty witnessed technical bounce back and snapped the day’s trade with modest gain of about 20 points. After a firm opening, market turned choppy in afternoon trade following brutal global cues but, negotiated a positive close in the end as short-covering witnessed in the last leg of trade post three sessions’ of massacre. Globally, in Asia, markets ended mostly in red with financial and energy shares weighing on investor sentiments. Investors took money off the table with the ongoing corporate earnings season failing to meet expectations. While, European shares were trading lower on Tuesday, as investors took more profits after a rally to an eight month high last week.

The domestic benchmark edged higher after flat start as sentiment was supported by high beta realty banking stocks. Market extended its rally and touched intraday high just near its crucial 5,300 mark in the mid morning trade. Meanwhile, banking stocks rose on bargain hunting after sliding for last two trading sessions post budget. Stocks like SBI, PNB, Kotak Bank and HDFC bank surged 1-4 percent in the trade. Afterwards, the index trimmed some of its gains from its high point as hefty selling in rate sensitive Automobile pocket exerted pressure on the frontline gauges as most auto stocks got dragged, led by Tata Motors, Bajaj Auto, M&M and Maruti Suzuki. Meanwhile, UB group stocks dipped on reports that Kingfisher may lose its flying permit. Vijay Mallya has been asked by the Directorate General of Civil Aviation to present a clear picture of the cash-strapped private carrier. Market turned red in the mid noon trade and the 50-unit S&P CNX Nifty hit their lowest level in nearly two weeks following weak opening in European counters. Thereafter , a bout of volatility was witnessed in late trade as key benchmark index pared all its losses and negotiated a positive closing with a modest gain of 0.34 percent supported by short-covering in fundamentally strong stocks.

Back home, most of the sectoral indices on the NSE settled in the positive territory with CNX Realty gaining the most, up 1.57% followed by CNX PSU Bank up by 1.46% and CNX Pharma up by 2.67% while, CNX Auto declined by 1.15% remained the lone loser in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 4.48% and reached 21.94.

The India VIX witnessed contraction of 4.48% at 21.94 as compared to its previous close of at 22.97 on Monday.

The 50-share S&P CNX Nifty gain 17.80 points or 0.34% to settle at 5274.85.

Nifty March 2012 futures closed at 5,297.00 at a premium of 22.15 points over spot closing of 5,274.85, while Nifty April 2012 futures were at 5,338.35 at a premium of 63.50 points over spot closing. The near month March 2012 derivatives contract expires on Thursday, March 29, 2012. Nifty March futures saw contraction of 0.89 million (mn) units taking the total outstanding open interest (OI) to 25.89 mn units.

From the most active contract, Tata Motors March 2012 futures were at a premium of 1.00 point at 272.90 compared with spot closing of 271.90. The number of contracts traded was 19,168.

HDIL March 2012 futures were at a premium of 0.55 point at 94.55 compared with spot closing of 94.00. The number of contracts traded was 14,208.

Reliance Industries March 2012 futures were at a premium of 6.55 at 764.55 compared with spot closing of 758.00. The number of contracts traded was 14,334.

Tata Steel March 2012 futures were at a premium of 0.15 point at 454.95 compared with spot closing of 454.80. The number of contracts traded was 18,287.

ICICI Bank March 2012 futures were at a premium of 8.85 point at 913.85 compared with spot closing of 905.00. The number of contracts traded was 18,427. 

Among Nifty calls, 5500 SP from the March month expiry was the most active call with an addition of 0.19 million open interest.

Among Nifty puts, 5200 SP from the March month expiry was the most active put with an addition of 0.23 million open interest.

The maximum OI outstanding for Calls was at 5500 SP (6.76mn) and that for Puts was at 5200 SP (7.85mn).

The respective Support and Resistance levels are: Resistance 5303.71-- Pivot Point 5268.48 -- Support 5239.61.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.06 for March -month contract.

The top five scrips with highest PCR on OI were ABG Ship 8.70, JP Power 4.79, DR reddy 2.78, Siemens 2.38 and SCI 2.37

Among most active underlying, Suzlon witnessed contraction of 1.59 million of Open Interest in the March month futures contract followed by IFCI which witnessed contraction of 1.99 million of Open Interest in the near month contract. Meanwhile, LITL witnessed an addition of 0.98 million in the March month futures. Also, RCOM witnessed contraction of 0.47 million in Open Interest in the March month contract. Finally, Tata Motors witnessed contraction of 3.02 million of Open Interest in the near month futures contract.