Final hour recovery helps Nifty to reclaim 5,150 mark

Domestic index S&P CNX Nifty on Thursday shot up in the last hour of trade, after languishing in the red for most of the day and snapped the day’s trade with a gain of about a percent recapturing its crucial 5,150 mark. Sentiments turned in the final hour of trade and bulls came back in action following short covering witnessed in realty and banking stocks. However, global cues remained subdued as all the Asian equity indices barring Nikkei ended the day’s trade in the negative terrain as the US Federal Reserve's policy announcement disappointed some investors who had expected more aggressive policy measures while, weak Chinese manufacturing data also dampened investor’s sentiments. Moreover, European counters too were trading in the red at this point of time. Back home, falling for the fourth-day today, the rupee tumbled to new low of 56.57 against the dollar on increased capital outflows from equity markets and rising demand from importers.

Initially, the Indian benchmark made a soft opening with negative bias following weak global cues. Afterwards, market witnessed a choppy trade in first half due to lack of fresh buying at its crucial 5,100 level. Meanwhile, cement stocks sulked on reports averring that Competition Commission of India (CCI), which deferred its verdict on alleged cartelization case of cement companies, is now mulling a fine of up to 3 times profit of cement companies. Moreover, cable and broadcasting companies edged lower on reports that the information and broadcasting ministry has extended the deadline for digitalization in four metros from June 30 to October 31, 2012. Meanwhile, weak Chinese manufacturing data also dampened investor’s sentiments. The HSBC China Manufacturing Purchasing Managers Index fell to 48.1 in June compared with a final reading of 48.4 in May. But it was the last leg of trade where market witnessed a sharp jump of over 70 points on the back of trend reversal in banking stocks due to short covering. Stocks like, SBI, ICICI Bank, HDFC Bank, AXIS Bank and Yes Bank all edged higher in the trade. Finally, Nifty snapped the terrific day of trade comfortably over its crucial 5,150 mark with a gain of about 0.90 percentage points.

Meanwhile, most of the sectoral indices on the NSE were settled in the green, CNX Realty remained the major gainer, up 3.19% followed by CNX PSU Bank up 2.26% and Bank Nifty up by 2.05% while CNX IT declined 0.13% remained the lone loser in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, tumbled 5.18% and reached 19.94.

The India VIX witnessed contraction of 5.18% at 19.94 as compared to its previous close of at 21.03 on Wednesday.

The 50-share S&P CNX Nifty gain 44.45 by point or 0.87% to settle at 5,165.00

Nifty June 2012 futures closed at 5,173.85 at a premium of 8.85 points over spot closing of 5,165.00, while Nifty July 2012 futures were at 5,191.65 at a premium of 26.65 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 0.80 million (mn) units taking the total outstanding open interest (OI) to 17.35 mn units.

From the most active contract, HDIL June 2012 futures were at a premium of 0.35 point at 79.65 compared with spot closing of 79.30. The number of contracts traded was 21,027.

Tata Motors June 2012 futures were at a premium of 1.15 point at 249.15 compared with spot closing of 248.00. The number of contracts traded was 20,040.

BHEL June 2012 futures were at a premium of 0.50 point at 223.80 compared with spot closing of 223.30. The number of contracts traded was 20,162.

DLF June 2012 futures were at a premium of 0.20 point at 194.20 compared with spot closing of 194.00. The number of contracts traded was 12,562.

Tata Steel June 2012 futures were at a discount of 0.45 point at 430.50 compared with spot closing of 430.95. The number of contracts traded was 11,299. 

Among Nifty calls, 5300 SP from the Jun month expiry was the most active call with an addition of 0.17 million open interest.

Among Nifty puts, 5000 SP from the Jun month expiry was the most active put with an addition of 0.04 million open interest.

The maximum OI outstanding for Calls was at 5300 SP (8.26mn) and that for Puts was at 5000SP (8.79mn).

The respective Support and Resistance levels are: Resistance 5192.45-- Pivot Point 5142.95--Support 5115.5.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.70 for June-month contract.

The top five scrips with highest PCR on OI were ABG Ship 6.33, Orient Bank 3.00, TATA Chemical 3.00, ABB 2.50 and Welcorp 2.33.

Among the most active underlying, IFCI witnessed contraction of 1.06 million of Open Interest in the June month futures contract followed by RCOM which witnessed  contraction of 0.38 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed an addition of 2.40 million in the June month futures. Also, GMR Infra witnessed contraction of 1.32 million in Open Interest in the June month contract. Finally, Tata Motors witnessed contraction of 2.64 million of Open Interest in the near month futures contract.