Snapping its five days losing streak, domestic index S&P CNX Nifty gained some strength and snapped the session above its crucial 5,200 mark with a gain of about half a percent. Though, market traded below its psychological level for most part of the day but trend reversal in final hour helped the index to end near intraday high. The gains were mainly backed by recovery in Auto and power stocks. On the global front, Asian counters snapped the session mostly in the red after Federal Reserve Chairman Ben Bernanke offered a gloomy view of the US economy, but hopes that the central bank is moving closer to more stimulus measures limited the day’s losses. Though, European markets traded firmly in the early session.
Back home, benchmark started the session on a flat note and traded cautiously near its neutral line on weak cues from Asian peers. Moreover, the sentiments were also dampened by half a percent fall in index heavyweight Reliance Industries. Afterwards, the index continued to traded flat till mid noon trade due to lack of positive trigger from domestic as well as global markets. But, market gained strength in the last leg of trade and recaptured its crucial 5,200 mark garnering about 30 points on the back of recovery in Power space as the sector is expecting some supportive decisions from the Cabinet meeting scheduled for tomorrow. In addition, Auto space too recovered from the day’s low and ended with a gain of about 0.70 percent supported by in-line Q1 numbers from Bajaj Auto. The company reported a marginal rise of 1.03% in its net profit at Rs 718.39 crore. Meanwhile, annual rate of inflation, based on the consumer prices index (CPI) in India, eased in the month of June to 10.02 percent as compared to 10.36 percent for the previous month of April 2012. However, the gains remained capped as nervousness prevailed over monsoon’s weak progress in the crucial July month moreover; investors also remained concern over the Government’s ability to push through pending reforms like diesel decontrol, reduction in fertilizer subsidy and clearance of financial sector bills. Finally, Nifty snapped the session near intraday high adding gain of about half a percent.
Meanwhile, most of the sectoral indices on the NSE settled in the green, CNX Metal remained the major gainer, up 1.48% followed by CNX Realty up 0.83% and CNX Infra up by 0.79% while CNX PSU Bank and CNX Pharma declined 1.14% and 0.64% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 1.91% and reached 17.44.
The India VIX witnessed contraction of 1.91% at 17.44 as compared to its previous close of at 17.78 on Tuesday.
The 50-share S&P CNX Nifty gained 23.45 points or 0.45% to settle at 5,216.30.
Nifty July 2012 futures closed at 5,223.55 at a premium of 7.25 points over spot closing of 5,216.30, while Nifty August 2012 futures were at 5246.30 at a premium of 30.00 points over spot closing. The near month July 2012 derivatives contract will expire on Thursday i.e. July 26, 2012. Nifty July futures saw contraction of 0.47 million (mn) units taking the total outstanding open interest (OI) to 23.83 mn units.
From the most active contract, Tata Motors July 2012 futures were at a premium of 0.95 point at 222.45 compared with spot closing of 221.50. The number of contracts traded was 18,224.
Tata Steel July 2012 futures were at a premium of 1.15 point at 412.45 compared with spot closing of 411.30. The number of contracts traded was 10,655.
ICICI Bank July 2012 futures were at a premium of 2.40 point at 941.10 compared with spot closing of 938.70. The number of contracts traded was 20,731.
Adani Enterprises July 2012 futures were at a premium of 0.75 points at 199.45 compared with spot closing of 198.70. The number of contracts traded was 18,760.
SBI July 2012 futures were at a discount of 1.40 point at 2,187.00 compared with spot closing of 2,188.40. The number of contracts traded was 30,854. Among Nifty calls, 5300 SP from the July month expiry was the most active call with contraction of 0.10 million open interest.
Among Nifty puts, 5000 SP from the July month expiry was the most active put with contraction of 0.12 million open interest.
The maximum OI outstanding for Calls was at 5300 SP (9.42mn) and that for Puts was at 5000 SP (8.39 mn).
The respective Support and Resistance levels are: Resistance 5202.73 -- Pivot Point 5202.73--Support 5182.61.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.24 for July -month contract.
The top five scrips with highest PCR on OI were AIL 4.00, BEML 2.00, Bajaj-Auto 1.69, OPTO Circui 1.50, and Hero Moto co 1.28.
Among the most active underlying, IFCI witnessed contraction of 6.79 million of Open Interest in the July month futures contract followed by LITL which witnessed an addition of 2.39 million of Open Interest in the near month contract. Meanwhile, Unitech witnessed contraction of 0.84 million in the July month futures. Also, RCOM witnessed an addition of 0.10 million in Open Interest in the July month contract. Finally, JP Associates witnessed an addition of 0.40 million of Open Interest in the near month futures contract.
