Nifty extended its gaining streak for the third straight session and the key benchmark snapped the low volume session with decent gains of about 40 points led by IT stocks amid a weak rupee and renewed expectations of US Fed easing monetary policy to boost growth prospects. On the global front, Asian shares rose on Monday as weaker-than-expected US growth data left open the possibility for more monetary stimulus from the Federal Reserve while, European counters were trading mixed at this point of time. Back home, bargain hunting in beaten down Information Technology counter coupled with gains in Technology and high beta Realty sector, worked in the favor of 50 scrip sensitive index. However, the decline of Fast Moving Consumer Goods (FMCG) counters capped the gains.
Initially, after making a cautious start the local index gained momentum triggered by favourable sentiments from global markets. However, the market registered day’s lows right at the opening bell. The sentiments were boosted by survey made by Confederation of Indian Industry survey, showing that India’s business confidence has bettered from the previous quarter, though it also pointed that concerns over stagnancy in reforms and rising cost of finance and raw materials still remain. The CII Business Confidence Index for the first quarter of the current fiscal (April-June) was pegged at 55, as against 52.9 in the last quarter of 2011-12. As the day progressed the gauges added to early gains and surged to register day’s highs at noon recapturing its crucial 5,250 mark. But, the market trimmed gains of about 40 points in mid noon trade following weak opening in Europe, though the index remained well above the equator. In the final hour of trade market regained its strength supported by some good earning reports from Dabur India, Bank of India and Godrej Consumer Products. Meanwhile, IT stocks remained major supporter to the market helped by the weaker rupee and hopes for more stimulus from the US Fed after data showed cooling US growth. Finally, Nifty ended the day’s trade tad below its crucial 5,250 mark with a gain of 0.75 percent.
Meanwhile, most of the sectoral indices on the NSE were settled in the green, CNX IT remained the major gainer, up 2.39% followed by CNX Energy up 1.24% and CNX Realty up by 1.07% while CNX FMCG declined 0.31% remained the lone loser in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged 1.19% and reached 17.82.
The India VIX witnessed an addition of 1.19% at 17.82 as compared to its previous close of at 17.89 on Friday.
The 50-share S&P CNX Nifty gain 39.15 points or 0.75% to settle at 5,248.15.
Nifty May 2012 futures closed at 5267.85 at a premium of 19.70 points over spot closing of 5248.15, while Nifty June 2012 futures were at 5,283.90 at a premium of 35.75 points over spot closing. The near month May 2012 derivatives contract will expire on Thursday i.e. May 31, 2012. Nifty May futures saw an addition of 0.46 million (mn) units taking the total outstanding open interest (OI) to 18.56 mn units.
From the most active contract, Tata Motors May 2012 futures were at a premium of 0.15 point at 317.15 compared with spot closing of 317.00. The number of contracts traded was 12,246.
HDIL May 2012 futures were at a premium of 0.70 point at 81.35 compared with spot closing of 80.65. The number of contracts traded was 7,545.
DLF May 2012 futures were at a premium of 1.25 points at 188.65 compared with spot closing of 187.40. The number of contracts traded was 8,688.
Pantaloon Retail May 2012 futures were at a premium of 3.95 point at 189.95 compared with spot closing of 186.00. The number of contracts traded was 16,670.
Tata Steel May 2012 futures were at a premium of 1.55 point at 465.35 compared with spot closing of 463.80. The number of contracts traded was 8,148. Among Nifty calls, 5600 SP from the May month expiry was the most active call with an addition of 0.08 million open interest.
Among Nifty puts, 5100 SP from the May month expiry was the most active put with an addition of 0.28 million open interest.
The maximum OI outstanding for Calls was at 5600 SP (4.48mn) and that for Puts was at 5100 SP (4.65mn).
The respective Support and Resistance levels are: Resistance 5273.05-- Pivot Point 5237.25-- Support 5212.35.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.22 for May -month contract.
The top five scrips with highest PCR on OI were Grasim 2.67, Dabur 2.00, Ind Hotel 2.00, PNB 1.74, and TCS 1.49
Among the most active underlying, Suzlon witnessed contraction of 0.57 million of Open Interest in the April month futures contract followed by LITL which witnessed an addition of 2.36 million of Open Interest in the near month contract. Meanwhile, IFCI witnessed contraction of 0.65 million in the April month futures. Also, RCOM witnessed an addition of 0.12 million in Open Interest in the April month contract. Finally, JP Associates Infra witnessed contraction of 0.71 million of Open Interest in the near month futures contract.
