Bulls retaliated back on Friday after a steep fall in previous session and the local index S&P CNX Nifty snapped the day’s trade with a gain of over one and half a percentage point on renewed hopes that the Reserve bank of India (RBI) on June 18 will cut key policy rates and also lower the cash reserve ratio to boost growth and liquidity. Moreover, global cues too remained supportive as expectations of more monetary stimulus boosted by a British plan to flood its recession-hit economy with cash, and after economic data in the United States rekindled talk of more Fed easing. Moreover, all the European counters were trading on a firm note at this point of time. Back home, better than expected Q1 advance tax numbers from banking and cement companies too boosted the sentiments. Banks like SBI, Bank of Baroda, Yes Bank, Union Bank Central Bank of India all reported higher Q1 advance tax numbers while, Cement major ACC, Ultratech Cement and Ambuja Cement reported 175%, 12.5% and 20% higher advance tax for Q1 respectively.
Market made a bounce back in initial trade tracking firm global cues amid intensifying hopes that additional stimulus is on its way from the US Federal Reserve following the initial jobless claims data which rose for the fifth time in last six weeks and as consumer prices fell 0.3 percent in May, the biggest drop in more than three years. Afterwards, market started extending its initial gains and regained its crucial 5,100 mark in early noon trade supported by Auto stocks on report that SIAM averred Oil Minister S Jaipal Reddy's proposal of additional taxes of up to Rs 2.55 lakh on diesel vehicles to be taken up only after the heavy industries ministry’s approval. However, the Department of Heavy Industry (DHI) had made clear its opposition to additional tax on diesel vehicles in a meeting last week. Thereafter, the index continued its jubilant run till the end supported by banking and Realty stocks which rallied on 25 basis points rate cut hopes. Moreover, firm opening in European counters too supported the sentiments. Meanwhile, cues from the money market too remained positive as rupee came off the day’s low and was showing signs of appreciation against the US dollar. Finally, Nifty ended the session with a gain of over one and a half percent recapturing crucial 5,100 mark.
Meanwhile, all the sectoral indices on the NSE settled in the positive territory with CNX Auto gaining the most, up 2.59% followed by Bank Nifty up by 2.32%, CNX Realty up by 1.92% and CNX Infra up by 1.59% in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down 0.66% and reached 25.54.
The India VIX witnessed contraction of 0.66% at 25.54 as compared to its previous close of at 25.71 on Thursday.
The 50-share S&P CNX Nifty gain 84.30 by point or 1.67% to settle at 5,139.05.
Nifty June 2012 futures closed at 5,147.70 at a premium of 8.65 points over spot closing of 5,139.05, while Nifty July 2012 futures were at 5,167.95 at a premium of 28.90 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 0.74 million (mn) units taking the total outstanding open interest (OI) to 16.33 mn units.
From the most active contract, Tata Motors June 2012 futures were at a premium of 1.75 point at 241.25 compared with spot closing of 239.50. The number of contracts traded was 29,307.
HDIL June 2012 futures were at a premium of 0.50 point at 74.60 compared with spot closing of 74.10. The number of contracts traded was 8,348.
Tata Steel June 2012 futures were at a discount of 1.30 point at 412.60 compared with spot closing of 413.90. The number of contracts traded was 9,124.
ICICI Bank June 2012 futures were at a premium of 6.05 point at 847.75 compared with spot closing of 841.70. The number of contracts traded was 20,958.
RIL June 2012 futures were at a premium of 3.00 point at 729.45 compared with spot closing of 726.45. The number of contracts traded was 8,655.
Among Nifty calls, 5200 SP from the Jun month expiry was the most active call with an addition of 0.06 million open interest.
Among Nifty puts, 4800 SP from the Jun month expiry was the most active put with an addition of 0.18 million open interest.
The maximum OI outstanding for Calls was at 5200 SP (6.44mn) and that for Puts was at 4800 SP (8.36mn).
The respective Support and Resistance levels are: Resistance 5167.11-- Pivot Point 5118.13--Support 5090.06.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.77 for June-month contract.
The top five scrips with highest PCR on OI were ABG Ship 7.17, ABB 4.00, Orient Bank 3.00, Tata Chem 3.00 and APIL 2.00
Among the most active underlying, IFCI witnessed contraction of 16.76 million of Open Interest in the June month futures contract followed by RCOM which witnessed contraction of 0.61 million of Open Interest in the near month contract. Meanwhile, UNITECH witnessed an addition of 3.88 million in the June month futures. Also, Jaiprakash Associates witnessed an addition of 0.31 million in Open Interest in the June month contract. Finally, Tata Motors witnessed an addition of 0.22 million of Open Interest in the near month futures contract.
