After witnessing fall of over four percent in past few sessions, Nifty snapped its losing streak on Tuesday, garnering a gain of 0.70 percent led by engineering major L&T along with index heavyweights Infosys and ICICI Bank. On the global front, US markets ended in the red overnight, while most of the Asian equity indices ended the trade in the negative terrain. However, European equities bounced back from 2012 lows, lifted by surprisingly strong German economic data, the German gross domestic product (GDP) driven by a surge in net exports expanded 0.5%, rebounding from the 0.2% contraction in the fourth quarter of 2011, while it rose by 1.2% from the corresponding period last year.
Back home, the key index extending its previous sessions’ losses started trade on a negative note, near intraday lows, breaching crucial 4,900 mark. However, within few minutes of the opening bell, the bourses gained momentum and entered the positive terrain as market priced in all negatives global and local. Moreover, the rupee too helped the sentiments recouping from day’s low in the early trade, gaining 19 paise from previous close at 53.97 a dollar, as Reserve Bank of India (RBI) stepped in with massive intervention. Afterwards, market extended its gains led by capital goods stocks on account of strong buying in engineering and construction conglomerate L&T. The company had reported March quarter earnings yesterday and the strong FY13 order inflow guidance is being seen as a key positive, considering the weak macro-economic environment. Thereafter, the bourses moved strictly in a tight range throughout the day but in the green as sentiments got some more boost after Germany reported better than expected economic data. Meanwhile, fertilizer stocks like FACT, National Fertilizers, Rashtriya Chemicals & Fertilizers and Chambal Fertilisers & Chemicals rallied in the range of 4-8 percent after Fertiliser Ministry approved 10% hike in urea prices, though these stocks mildly came off day's high after fertiliser secretary says any hike in urea price has to be cleared by cabinet. There is no change in urea prices as of now. Finally, Nifty ended the day’s trade with a gain of over 0.70 percentage point mainly led by Infosys (2.65%), L&T (5.18%) and ICICI Bank (2.16%).
Meanwhile, most of the sectoral indices on the NSE settled in the green, CNX Metal remained the major gainer, up 2.03% followed by CNX IT up 1.72% and CNX Infra up by 1.59% while CNX FMCG and CNX Media declined 0.80% and 0.27% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 4.21% and reached 22.28.
The India VIX witnessed contraction of 4.21% at 22.28 as compared to its previous close of at 23.26 on Monday.
The 50-share S&P CNX Nifty gained 35.00 points or 0.71% to settle at 4942.80.
Nifty May 2012 futures closed at 4942.25 at a discount of 0.55 points over spot closing of 4,942.80, while Nifty June 2012 futures were at 4959.65 at a premium of 16.85 points over spot closing. The near month May 2012 derivatives contract will expire on Thursday i.e. May 31, 2012. Nifty May futures saw a contraction of 0.48 million (mn) units taking the total outstanding open interest (OI) to 20.59 mn units.
From the most active contract, Tata Motors May 2012 futures were at a premium of 1.50 point at 291.75 compared with spot closing of 290.25. The number of contracts traded was 17,392.
HDIL May 2012 futures were at a premium of 0.65 point at 65.05 compared with spot closing of 64.40. The number of contracts traded was 9,588.
Tata Steel May 2012 futures were at a discount of 0.75 points at 418.5 compared with spot closing of 419.25. The number of contracts traded was 14,963.
Reliance Industries May 2012 futures were at a discount of 4.90 point at 677.40 compared with spot closing of 682.30. The number of contracts traded was 13,910.
JSW Steel May 2012 futures were at a premium of 4.80 point at 657.10 compared with spot closing of 652.30. The number of contracts traded was 9,887.
Among Nifty calls, 5200 SP from the May month expiry was the most active call with an addition of 0.12 million open interest.
Among Nifty puts, 4800 SP from the May month expiry was the most active put with an addition of 0.38 million open interest.
The maximum OI outstanding for Calls was at 5200 SP (7.70mn) and that for Puts was at 4800 SP (7.18mn).
The respective Support and Resistance levels are: Resistance 4975.81-- Pivot Point 4922.18--Support 4889.16.
The Nifty Put Call Ratio (PCR) OI wise stood at 0.90 for May -month contract.
The top five scrips with highest PCR on OI were ABG Ship 47.00, MPHASIS 5.00, Siemens 2.29, MRPL 2.00 and LT 1.41.
Among the most active underlying, Suzlon witnessed an addition of 0.23 million of Open Interest in the April month futures contract followed by IFCI which witnessed contraction of 0.79 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed an addition of 0.10 million in the April month futures. Also, UNITECH witnessed an addition of 3.08 million in Open Interest in the April month contract. Finally, JP Associates witnessed an addition of 1.30 million of Open Interest in the near month futures contract.
