Bulls take control over the market; Nifty ends near 5,000 mark

Bulls held their control throughout the day’s trade on Monday and Nifty ending the remarkable day of trade near its crucial 5,000 level with the gains of 1.30 percent supported by firm global cues while recovery in rupee too aided to the sentiments. Globally, sentiments turned bullish in the Asian region and all the major equity indices barring Jakarta Composite snapped the day’s trade in the positive terrain on Monday, after an opinion poll indicated that Greece’s pro-austerity conservative New Democracy party swung into first place ahead of next month’s elections moreover, mainland Chinese shares rallied over a percentage point amid expectations for a policy stimulus. Meanwhile, all the European equity indices were trading in the green at this point of time.

Buoyed by strong Asian cues, the benchmark index started trade on a positive note recapturing its crucial 4,950 mark. However, right after the opening bell the index fell to register its intraday low albeit in green. Meanwhile, telecom stocks like Idea Cellular, Bharti Airtel and Reliance Communication all edged higher after Telecom Commission asked the Telecom Regulatory Authority of India (TRAI) to analyse the impact of pricing on subscribers, operators and government revenues. Afterwards, market witnessed a range-bound session near its crucial 4,950 mark till mid noon trade. Meanwhile, Oil marketing companies stock BPCL and HPCL edged lower after Oil Minister Jaipal Reddy announced that the government currently is not looking at a hike in diesel, LPG and kerosene prices, however, the key index maintained its positive momentum. It was the last leg of trade, where market changed its gear and gained about 50 points in final hour supported by recovering rupee and firm opening in European counters. Finally, Nifty ended the day’s trade near its intraday high near its crucial 5,000 level aided by buying in banking, infra, auto and power companies.

Meanwhile, all the sectoral indices on the NSE settled in the positive territory with CNX PSU Bank gaining the most, up 3.61% followed by Bank Nifty up by 2.56%, CNX Infra up by 1.90% and CNX Auto up by 1.62% in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, tumbled 5.80% and reached 23.68.

The India VIX witnessed contraction of 5.81% at 23.68 as compared to its previous close of at 25.14 on Friday.

The 50-share S&P CNX Nifty gain 65.25 by point or1.33% to settle at 4985.65.

Nifty May 2012 futures closed at 4,975.40 at a discount of 10.25 points over spot closing of 4,985.65, while Nifty June 2012 futures were at 4,981.20 at a discount of 4.45 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 1.08 million (mn) units taking the total outstanding open interest (OI) to 17.80 mn units.

From the most active contract, Tata Motors May 2012 futures were at a discount of 0.10 point at 277.00 compared with spot closing of 277.10. The number of contracts traded was 17,973.

Tata Steel May 2012 futures were at a discount of 0.55 point at 410.40 compared with spot closing of 410.95. The number of contracts traded was 22,308.

BHEL May 2012 futures were at a discount of 1.05 points at 216.85 compared with spot closing of 217.90. The number of contracts traded was 14,343.

ICICI Bank May 2012 futures were at a discount of 16.75 point at 819.20 compared with spot closing of 835.95. The number of contracts traded was 21,712.

Reliance Industries May 2012 futures were at a discount of 7.75 point at 693.25 compared with spot closing of 701.00. The number of contracts traded was 11,461.

Among Nifty calls, 5100 SP from the May month expiry was the most active call with contraction of 0.03 million open interest.

Among Nifty puts, 4700 SP from the May month expiry was the most active put with  contraction of 0.79 million open interest.

The maximum OI outstanding for Calls was at 5100 SP (6.48 mn) and that for Puts was at 4700 SP (8.57mn).

The respective Support and Resistance levels are: Resistance 5009.96-- Pivot Point 4970.63--Support 4946.31.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.94 for May-month contract.

The top five scrips with highest PCR on OI were ABG Ship 46.00, WelCorp 6.63, Asian Paints 2.07 Tata Communication 2.00, and MPHASIS 1.50.

Among the most active underlying, Suzlon witnessed contraction of 12.76 million of Open Interest in the April month futures contract followed by IFCI which witnessed a contraction of 9.82 million of Open Interest in the near month contract. Meanwhile, JP Associates witnessed contraction of 6.09 million in the April month futures. Also, RCOM witnessed contraction of 6.26 million in Open Interest in the April month contract. Finally, Unitech witnessed contraction of 6.70 million of Open Interest in the near month futures contract.