Bulls make spectacular comeback; Nifty just shy 5,300 level

Bulls made spectacular comeback, after a sharp cut in previous two sessions, holding their control throughout the day’s trade on Friday with Nifty slammed a century and ended the remarkable day of trade tad below its crucial 5,300 level supported by all the sectoral indices on the NSE ending in the green with realty, PSE banks and metals leading the up-move. Finance Minister Pranab Mukherjee's clarification on P-Notes boosted sentiments. Globally, European stocks rose in early trade on Friday as bargain hunters jumped in following a sharp three-session drop while, most of the Asian equity indices ended the day’s trade in the green. Back home, the Indian rupee gained 30 paise at 51.10 a dollar as the Reserve Bank of India said it would infuse Rs 10,000 crore via open market operations (OMOs) today to alleviate the tight liquidity conditions.

Earlier, the market made a firm opening recapturing its crucial 5,200 mark led by some bottom fishing after two sessions’ of downfall. The sentiments also got support by the sharp jump in core sector. The eight core infrastructure industries that account for nearly 40% in the IIP grew at 6.8% in February against 0.5% last month. Uptrend on the index continued in mid morning trade as sentiments got a boost after the Reserve Bank said it will buy up to Rs 10,000 crore of bonds through open market operations today. Afterwards, market prolonging its jubilant run breached its crucial 5,300 mark in late trade after finance minister’s comments that holders of P-notes will have no tax liability in India. The up-move was also supported by heavyweights - Reliance, Infosys and ICICI Bank which advanced in trades. Reliance ADAG group shares too remained in the green. RCom added 1.50 percent, Reliance Infra moved up 3.50 percent, Reliance Media Works was up about 4 percent in trades. Finally, market ended the day’s trade with a massive gain of over two percent and a tad below its crucial 5,300 mark.

Meanwhile, all the sectoral indices on the NSE were settled in the green, CNX Realty remained the major gainer, up 2.99% followed by CNX PSE up 2.97%, Bank Nifty up by 2.87%, CNX Energy up 2.78% and CNX Metal up by 2.71% in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, tumbled 8.01% and reached 22.38.

The India VIX witnessed contraction of 8.01% at 22.38 as compared to its previous close of at 24.33 on Thursday.

The 50-share S&P CNX Nifty gain 116.70 points or 2.25% to settle at 5,295.55.Nifty April 2012 futures closed at 5,333.25 at a premium of 37.70 points over spot closing of 5,295.55, while Nifty May 2012 futures were at 5,367.25 at a premium of 71.70 points over spot closing. The near month April 2012 derivatives contract will expire on Thursday i.e. April 26, 2012. Nifty April futures saw contraction of 0.46 million (mn) units taking the total outstanding open interest (OI) to 20.43 mn units.

From the most active contract, Hindalco Industries April 2012 futures were at a premium of 1.50 point at 130.90 compared with spot closing of 129.40. The number of contracts traded was 6,861.

HDIL April 2012 futures were at a premium of 0.75 point at 86.40 compared with spot closing of 85.65. The number of contracts traded was 8,972.

Tata Steel April 2012 futures were at a premium of 2.25 points at 471.25 compared with spot closing of 469.00. The number of contracts traded was 15,057.

Reliance Industries April 2012 futures were at a premium of 8.45 point at 756.35 compared with spot closing of 747.90. The number of contracts traded was 16,384.

HDFC Bank April 2012 futures were at a premium of 7.70 point at 524.65 compared with spot closing of 516.95. The number of contracts traded was 8,026.  

Among Nifty calls, 5400 SP from the April month expiry was the most active call with an addition of 0.36 million open interest.

Among Nifty puts, 5000 SP from the April month expiry was the most active put with contraction of 0.29 million open interest.

The maximum OI outstanding for Calls was at 5400 SP (3.53mn) and that for Puts was at 5000 SP (5.38mn).

The respective Support and Resistance levels are: Resistance 5333.88-- Pivot Point 5268.76 -- Support 5230.43.

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

The top five scrips with highest PCR on OI were ABG Ship 4.00, Hindustan Zinc 4.00, Siemens 1.60, Grasim 1.25 and Jubilant Food 1.11.

Among most active underlying, Suzlon witnessed an addition of 10.44 million of Open Interest in the April month futures contract followed by IFCI which witnessed an addition of 0.75 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed an addition of 2.63 million in the April month futures. Also, Tata Motors witnessed contraction of 0.04 million in Open Interest in the April month contract. Finally IVRCL Infra witnessed an addition of 1.66 million of Open Interest in the near month futures contract.