After three days of consolidation, bulls hold back their control throughout the day’s trade on Friday and Nifty ended remarkable day of trade with a gain of over two percent, recapturing its crucial 5,250 level buoyed by the government’s moves to revive the economy. Besides, the finance ministry proposing a monetary limit for invoking the controversial General Anti-Tax Avoidance Rules (GAAR) in its draft guidelines issued late on Thursday night lifted the trading sentiment. Moreover, cues from global market also remained terrific as all the Asian equity indices snapped the session in the positive zone while; European stocks maintained morning gains on the back of the agreement to use the continent’s permanent bailout fund to recapitalize struggling banks. EU leaders also agreed to the idea of a tighter union in the long term. Back home, the rupee, too, pulled back sharply gaining 1.4 percent, and traded below the psychological 56 against the dollar mark.
Earlier, the Indian market made a gap-up start recapturing its crucial 5,200 mark on hopes that the government will announce economic reforms to revive the Indian economy. Moreover, positive news coming from Europe also helped the gains in Indian markets. Afterwards market traded jubilantly and regained its crucial 5,250 level as the trading sentiments were buoyed after the Finance Ministry proposing a monetary limit for invoking the controversial GAAR in its draft guidelines issued late last night. Meanwhile, Auto stocks surged in the trade after state-run oil firms announced reduction in petrol prices by Rs 2.46 per litre effective June 29, 2012. Moreover, power generation stocks extended their gains on hopes that a recent fall in international coal prices could boost profitability. Thereafter, Nifty continued its northbound journey till end and snapped the session near its intraday high level with a gain of about 130 points as firm opening in European counters too aided the sentiments.
Meanwhile, all the sectoral indices on the NSE settled in the positive territory with CNX Metal gaining the most, up 3.38% followed by Bank Nifty up by 3.37% and CNX Infra up by 2.18% in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, tumbled 7.46% and reached 19.08.
The India VIX witnessed contraction of 1.54% at 19.08 as compared to its previous close of at 20.62 on Thursday.
The 50-share S&P CNX Nifty gained 129.75 points or 2.52% to settle at 5,278.90.
Nifty July 2012 futures closed at 5,297.35 at a premium of 18.45 points over spot closing of 5,278.90, while Nifty August 2012 futures were at 5322.00 at a premium of 43.10 points over spot closing. The near month July 2012 derivatives contract will expire on Thursday i.e. July 26, 2012. Nifty July futures saw an addition of 3.55 million (mn) units taking the total outstanding open interest (OI) to 21.63 mn units.
From the most active contract, Tata Motors July 2012 futures were at a discount of 2.10 point at 239.85 compared with spot closing of 241.95. The number of contracts traded was 17,119.
Cairn India July 2012 futures were at a premium of 2.00 point at 309.25 compared with spot closing of 307.25. The number of contracts traded was 35,072.
BHEL July 2012 futures were at a premium of 1.80 point at 233.55 compared with spot closing of 231.75. The number of contracts traded was 12,415.
Tata Steel July 2012 futures were at a discount of 11.50 points at 431.60 compared with spot closing of 443.10. The number of contracts traded was 13,410.
ICICI Bank July 2012 futures were at a premium of 10.70 point at 900.15 compared with spot closing of 889.45. The number of contracts traded was 27,102.
Among Nifty calls, 5400 SP from the July month expiry was the most active call with an addition of 1.85 million open interest.
Among Nifty puts, 5000 SP from the July month expiry was the most active put with an addition of 0.46 million open interest.
The maximum OI outstanding for Calls was at 5400 SP (4.60mn) and that for Puts was at 5000 SP (6.24mn).
The respective Support and Resistance levels are: Resistance 5313.76-- Pivot Point 5251.38--Support 5216.51.
Among the most active underlying, Suzlon witnessed contraction of 1.06 million of Open Interest in the July month futures contract followed by IFCI which witnessed an addition of 4.15 million of Open Interest in the near month contract. Meanwhile, LITL witnessed an addition of 12.89 million in the July month futures. Also, RCOM witnessed an addition of 0.52 million in Open Interest in the July month contract. Finally, Jaiprakash Associates witnessed an addition of 2.48 million of Open Interest in the near month futures contract.
