After falling in previous seven out of nine sessions due to Greece political crisis and depreciation in rupee, domestic index Nifty heaved a sigh of relief garnering a marginal gain of 0.25 percent in Thursday’s trade. Asian cues supported the domestic bourses as most of the Asian equity indices ended in the positive terrain on reports that Japan, world’s third largest economy expanded at a faster than expected rate of 1% in the first quarter of 2012, representing a slow recovery boosted by reconstruction from last year’s earthquake tsunami. However, weak opening in European counters spread jitters in Indian market as investors remained worried over euro-zone stability. Back home, the rupee hit a new intraday low today against the US dollar, after holding up for the better part of morning session.
Earlier, the Indian equity market made a gap-up opening powered by a firming trend on other Asian bourses post upbeat Japanese GDP data. Market extended its gains and regained its crucial 4,900 mark in the early trade. Meanwhile, telecom stocks like Idea Cellular, Bharti Airtel, Reliance Communication and MTNL too supported the sentiments and edged higher on report that the telecom regulator TRAI may be inclined to reconsider its recommendations on spectrum auction if the government asks it to do so. TRAI’s latest recommendations on spectrum auction propose to keep Rs 3,622 crore as reserve price per unit of 2G spectrum, more than 10 times the cost of the same permits in 2008. Moreover, sugar stocks continued to trade with traction after Directorate General of Foreign Trade (DGFT) relaxed exports norm for sugar. The index traded above its crucial 4,900 mark till first half getting firm cues from Asian peers. But, market started falling from its higher level in the noon trade following weak opening in European counters. Meanwhile, index heavyweight too weighed the sentiments, down by 3.50 percent following a downgrade by brokerage firm Nomura, which said the order guidance for FY13 looked challenging. In the last leg of trade, market turned red for a bit but Nifty managed to close in the green supported by stocks from fast moving consumer goods along with rate sensitive’s Realty counter.
Meanwhile, most of the sectoral indices on the NSE were settled in the green, CNX FMCG remained the major gainer, up 1.99% followed by CNX Realty up 0.86% and CNX Media up by 0.70% while CNX Infra and CNX Auto declined 1.05% and 0.53% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged 0.50% and reached 23.59.
The India VIX witnessed contraction of 0.51% at 23.59 as compared to its previous close of at 23.71 on Wednesday.
The 50-share S&P CNX Nifty gain 11.95 points or 0.25% to settle at 4870.20.
Nifty May 2012 futures closed at 4852.30 at a discount of 17.90 points over spot closing of 4,870.20, while Nifty June 2012 futures were at 4868.05 at a discount of 2.15 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 0.60 million (mn) units taking the total outstanding open interest (OI) to 21.48 mn units.
From the most active contract, Tata Motors May 2012 futures were at a premium of 2.05 point at 272.55 compared with spot closing of 270.50. The number of contracts traded was 23,751.
Tata Steel May 2012 futures were at a discount of 4.35 point at 402.55 compared with spot closing of 406.90. The number of contracts traded was 14,131.
Reliance Industries May 2012 futures were at a discount of 8.15 points at 678.65 compared with spot closing of 686.80. The number of contracts traded was 15,910.
ICICI Bank May 2012 futures were at a discount of 13.55 point at 771.95 compared with spot closing of 785.50. The number of contracts traded was 18,644.
HDFC May 2012 futures were closed flat at 633.45 compared with spot closing of 633.45. The number of contracts traded was 9,576.
Among Nifty calls, 5200 SP from the May month expiry was the most active call with contraction of 0.19 million open interest.
Among Nifty puts, 4800 SP from the May month expiry was the most active put with addition of marginal in open interest.
The maximum OI outstanding for Calls was at 5200 SP (7.22mn) and that for Puts was at 4800 SP (6.46mn).
The respective Support and Resistance levels are: Resistance 4911.56-- Pivot Point 4880.88--Support 4839.51.
The Nifty Put Call Ratio (PCR) OI wise stood at 0.84 for May -month contract.
The top five scrips with highest PCR on OI were MPHASIS 5.00, Siemens 2.43, MRPL 2.00 Indus Ind Bank 2.00 and Asian Paint 1.46.
Among the most active underlying, IFCI witnessed an addition of 0.32 million of Open Interest in the April month futures contract followed by RCOM which witnessed contraction of 0.06 million of Open Interest in the near month contract. Meanwhile, JP Associates witnessed contraction of 3.08 million in the April month futures. Also, Unitech witnessed contraction of 1.72 million in Open Interest in the April month contract. Finally, Tata Motors witnessed contraction of 0.66 million of Open Interest in the near month futures contract.
