After seesawing between the green and red territory near its crucial 5,100 mark for most part of the day’s trade, domestic benchmark CNX S&P Nifty snapped the session near equator on Wednesday ahead of key inflation data to be released tomorrow. Though, inflation numbers for the month of May are expected to come a tad higher at 7.61 percent as compared to 7.23 percent in the month of April. On the global front, Asian equity indices ended mostly in the green as traders remained optimistic amid speculation that the Federal Reserve will stimulate the economy and after the European Central Bank endorsed a plan to guarantee bank deposits, although a slump in shares of European retailer Esprit capped the gains. However, European counters, after a firm start, turned red and trading on a cautious note at this point of time. Back home, the Indian rupee appreciated by 25 paise to 55.54 as against the US dollar at the time of closing of Indian equities.
Initially, Indian benchmark started off on a cautious note stalling their previous session’s rally as investors opted to book profits. Moreover, selling in Auto stocks too dampened the sentiments and stocks like Maruti Suzuki, Tata Motors and M&M edged lower on the buzz that diesel cars may get expensive by Rs 2.55 lakh, with the oil ministry’s plan of imposing a special tax on diesel using vehicles. Afterwards, market pared its all losses and turned green supported by telecom stocks, which edged higher after the Reserve Bank of India approved the proposal to allow mobile phone companies to mortgage airwaves that will allow the companies to use spectrum as collateral and raise funds from banks for the upcoming auctions. Market again tumbled below the equator following depreciation in rupee and breached its crucial 5,100 mark. But 5,100 proved to be a very good support level as index started moving upward gradually following firm opening in European counters. Meanwhile, shares of Aviation space like Spicejet, Jet Air India and Kingfisher Airlines extended their gains for the second consecutive session as oil prices fell. Market traded between 5,100-5050 range in the final hour of trade and ended the trade on a flat note as investors remained on the safer side ahead of the May WPI data to be announced tomorrow.
Meanwhile, on NSE sectoral space CNX FMCG gained the most, garnering 1.22% followed by CNX Pharma down by 0.48% and CNX IT down by 0.38% while, CNX Auto up 1.60% and CNX Realty up by 1.51% remained top gainers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged 0.66% and reached 24.36.
The India VIX witnessed an addition of 0.66% at 24.36 as compared to its previous close of at 24.20 on Tuesday.
The 50-share S&P CNX Nifty gain 5.55 by point or 0.11% to settle at 5,121.45.
Nifty June 2012 futures closed at 5,123.00 at a premium of 1.55 points over spot closing of 5,121.45, while Nifty July 2012 futures were at 5,144.10 at a premium of 22.65 points over spot closing. The near month June 2012 derivatives contract will expire on Thursday i.e. June 28, 2012. Nifty June futures saw an addition of 0.45 million (mn) units taking the total outstanding open interest (OI) to 16.18 mn units.
From the most active contract, Reliance Communications June 2012 futures were at a premium of 0.45 point at 68.95 compared with spot closing of 68.50. The number of contracts traded was 11,485.
HDIL June 2012 futures were at a premium of 0.10 point at 75.35 compared with spot closing of 75.25. The number of contracts traded was 9,665.
Tata Motors June 2012 futures were at a premium of 1.55 point at 238.90 compared with spot closing of 237.35. The number of contracts traded was 19,873.
Tata Steel June 2012 futures were at a discount of 2.35 point at 409.60 compared with spot closing of 411.95. The number of contracts traded was 10,700.
ICICI Bank June 2012 futures were at a discount of 0.70 point at 848.70 compared with spot closing of 849.40. The number of contracts traded was 20,613.
Among Nifty calls, 5200 SP from the Jun month expiry was the most active call with an addition of 0.58 million open interest.
Among Nifty puts, 4800 SP from the Jun month expiry was the most active put with an addition of marginal in its open interest.
The maximum OI outstanding for Calls was at 5200 SP (6.44mn) and that for Puts was at 4800 SP (8.06mn).
The respective Support and Resistance levels are: Resistance 5145.75-- Pivot Point 5120.6--Support 5096.3.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.72 for June-month contract.
The top five scrips with highest PCR on OI were ABG Ship 7.33, ABB 4.00, Orient Bank 3.00, MRPL 2.75 and ITC 1.65
Among the most active underlying, IFCI witnessed an addition of 0.77 million of Open Interest in the June month futures contract followed by RCOM which witnessed an addition of 0.61 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed contraction of 0.65 million in the June month futures. Also, Tata Motors witnessed contraction of 0.15 million in Open Interest in the June month contract. Finally, HDIL witnessed contraction of 0.47 million of Open Interest in the near month futures contract.
