Bulls made a spectacular comeback after a sharp cut in previous session holding their control throughout the day’s trade on Tuesday with Nifty garnering over a percentage point gains and ended the remarkable day of trade tad below its crucial 5,350 level supported by firm European cues. However, most of the Asian markets fell on Tuesday after reports, which showed that Chinese imports grew about half the pace as economist expected, this indicated that China which is regarded as the World's second biggest economy is gradually slowing down. Back home, the sentiments remained cheerful on expectations that leading companies may report encouraging Q1 FY13 numbers.
Earlier, the market made a positive start shrugging off subdued cues from regional peers and regained its crucial 5,300 mark in mid morning trade supported by buying in metal counters as US aluminum giant Alcoa reported Q2 June 2012 earnings and revenue that beat market expectation after an increase in orders from the auto and aerospace industries. Afterwards, market traded in the tight band but, much above the equator as sentiments were supported by banking stocks, which surged after IndusInd Bank reported stellar Q1 number. The bank has posted a rise of 31.12% in its net profit at Rs 236.26 crore for the quarter ended June 30, 2012 as compared to Rs 180.18 crore for the same quarter in the previous year. Sudden spike up was witnessed in the last leg of trade and Nifty touched its intraday high near its crucial 5,350 mark following firm trade in European counterparts as Euro area finance chiefs agreed a deal which will release 30 billion euros of bailout funds for Spain’s troubled lenders by the end of July. The euro zone ministers also decided to grant Spain an extra year until 2014 to reach its deficit reduction targets. Moreover, the sentiments were also supported by FMCG space, which traded in the red for most part of the day, suddenly turned the top gainer on NSE sectoral front on report that monsoon, which came late, seems to be advancing gradually to cover most parts of the country. The meteorological department officials predicted that medium rainfall will continue for the coming two to three days all over the city. Finally, Nifty snapped the day’s trade near its intraday high with a massive 70 points gain.
Meanwhile, all the sectoral indices on the NSE settled in the positive territory with CNX FMCG gaining the most, up 1.67% followed by CNX Realty up by 1.63% and CNX Infra up by 1.58% in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, tumbled 4.75% and reached 17.83.
The India VIX witnessed contraction of 4.75% at 17.83 as compared to its previous close of at 18.72 on Monday.
The 50-share S&P CNX Nifty gained 70.20 points or 1.33% to settle at 5,345.35.
Nifty July 2012 futures closed at 5,358.15 at a premium of 12.80 points over spot closing of 5,345.35, while Nifty August 2012 futures were at 5384.95 at a premium of 39.60 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 0.73 million (mn) units taking the total outstanding open interest (OI) to 23.54 mn units.
From the most active contract, Reliance Communications July 2012 futures were at a premium of 0.65 point at 71.65 compared with spot closing of 71.00. The number of contracts traded was 10,860.
Tata Motors July 2012 futures were at a discount of 3.05 point at 243.20 compared with spot closing of 246.25. The number of contracts traded was 17,567.
ICICI Bank July 2012 futures were at a discount of 0.70 point at 942.10 compared with spot closing of 942.80. The number of contracts traded was 24,657.
Tata Steel July 2012 futures were at a discount of 11.10 points at 428.55 compared with spot closing of 439.65. The number of contracts traded was 10,203.
HDFC July 2012 futures were at a premium of 1.35 point at 683.35 compared with spot closing of 682.00. The number of contracts traded was 8,152.
Among Nifty calls, 5400 SP from the July month expiry was the most active call with an addition of 0.20 million open interest.
Among Nifty puts, 5000 SP from the July month expiry was the most active put with an addition of 0.52 million open interest.
The maximum OI outstanding for Calls was at 5400 SP (7.67mn) and that for Puts was at 5000 SP (7.91mn).
The respective Support and Resistance levels are: Resistance 5252.25 -- Pivot Point 5318.9--Support 5351.2.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.47 for July -month contract.
The top five scrips with highest PCR on OI were APIL 4.00, DIVISLAB 2.00, MRF 2.00, Sun Pharma 1.49, and Ambuja Cement 1.10.
Among the most active underlying, IFCI witnessed an addition of 3.51 million of Open Interest in the July month futures contract followed by RCOM which witnessed an addition of 1.16 million of Open Interest in the near month contract. Meanwhile, HDIL witnessed contraction of2.30 million in the July month futures. Also, Jaiprakash Associates witnessed an addition of 1.08 million in Open Interest in the July month contract. Finally, Tata Motors witnessed contraction of 1.03million of Open Interest in the near month futures contract.
