After witnessing three days of continuous consolidation, CNX S&P Nifty snapped the day’s trade with a gain of about half a percent. However, market witnessed consolidation for most part of the trade indicating that investors are keenly waiting for the decision by European Central Bank after European Summit but, value buying in FMCG, banking and auto stocks helped Nifty to end at highest since April. On the global front, Asian markets ended on a mixed note as investors remained on sideline and booked some profits ahead of the European Central Bank’s meet expecting an interest rate cut. Moreover, European counters were trading in the positive terrain after a flattish start. Back home, first quarter results of FY13 and inflation data ahead of RBI’s first quarter review of monetary policy will also be closely watched by investors.
Earlier, triggered by the mixed sentiments around Asian markets, Indian benchmark kicked-off trade on a flat note. Within few minutes of the initial trade, market touched its intraday low breaching its crucial 5,300 mark as profit-booking witnessed in realty and metal stocks. Moreover, fall in Indian rupee too dampened the sentiments. But, the index got its crucial 5,300 level back and traded near that mark for entire first half. Meanwhile, retail stocks like Pantaloon, Shoppers Stop and Trent all rallied in the range of 3-10 percent on reports that the government is likely to revive an order allowing foreign investors to own majority stakes in Indian supermarkets and department stores after the presidential elections later this month. In addition, shares of basmati rice exporters like Kohinoor Foods, LT Foods and KRBL also rallied 8-15 percent after Indian government, in a bid to boost exports of rice, scrapped the minimum export price (MEP) on basmati rice. Now, producers of aromatic rice can sell it in the overseas market without any restriction. Afterwards, market continued its listless trade till mid noon session as European counters also failed to cheer the investors’ mood. But, in the final hour of trade, market picked up the speed after Mauritius Foreign Ministry said India has assured Mauritius economic interests won't be harmed and a joint working group will take place on August 27-28. Finally, Nifty ended the session with a gain of around half a percent well above its 5,300 bastion.
Meanwhile, most of the sectoral indices on the NSE were settled in the green, CNX FMCG remained the major gainer, up 1.22% followed by Bank Nifty up 1.07% and CNX Auto up by 0.74% while CNX Metal and CNX Realty declined 0.32% each in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, rose 0.43% and reached 18.35.
The India VIX witnessed an addition of 0.44% at 18.35 as compared to its previous close of at 18.27 on Wednesday.
The 50-share S&P CNX Nifty gained 24.75 points or 0.47% to settle at 5,327.30.
Nifty July 2012 futures closed at 5,344.50 at a premium of 17.20 points over spot closing of 5,327.30, while Nifty August 2012 futures were at 5373.90 at a premium of 46.60 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 0.47 million (mn) units taking the total outstanding open interest (OI) to 23.76 mn units.
From the most active contract, Reliance Communications July 2012 futures were at a premium of 0.70 point at 69.25 compared with spot closing of 68.55. The number of contracts traded was 7,658.
Tata Motors July 2012 futures were at a discount of 0.55 point at 237.80 compared with spot closing of 239.35. The number of contracts traded was 16,004.
HDIL July 2012 futures were at a premium of 0.40 point at 91.15 compared with spot closing of 90.75. The number of contracts traded was 9,075.
Tata Steel July 2012 futures were at a discount of 11.35 points at 440.45 compared with spot closing of 451.80. The number of contracts traded was 7,015.
ICICI Bank July 2012 futures were at a discount of 4.45 point at 917.80 compared with spot closing of 922.25. The number of contracts traded was 21,230.
Among Nifty calls, 5400 SP from the July month expiry was the most active call with an addition of 0.36 million open interest.
Among Nifty puts, 5000 SP from the July month expiry was the most active put with an addition of 0.35 million open interest.
The maximum OI outstanding for Calls was at 5400 SP (6.77mn) and that for Puts was at 5000 SP (7.27mn).
The respective Support and Resistance levels are: Resistance 5344.35 -- Pivot Point 5316.6--Support 5299.55.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.51 for July -month contract.
The top five scrips with highest PCR on OI were APIL 4.00, DIVISLAB 2.50, MRF 2.00, Sun Pharma 1.61, and Ambuja Cement 1.55.
Among the most active underlying, LITL witnessed an addition of 4.90 million of Open Interest in the July month futures contract followed by IFCI which witnessed contraction of 1.05 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed an addition of 0.62 million in the July month futures. Also, HDIL witnessed an addition of 0.89 million in Open Interest in the July month contract. Finally, Tata Motors witnessed an addition of 2.17 million of Open Interest in the near month futures contract.
