Nifty manages a close with modest gains after a volatile day of trade

NSE benchmark index Nifty managed a close in green after a very volatile day of trade on Tuesday, though the start of the index was in positive terrain bucking global cues as the US markets closed lower and most of the Asian markets were moving cautiously in the early trade on the back of European concerns. However the domestic markets could not hold up to its gain and in the very first hour of trade, briefly slipped into red as investors worried of the global situation booked profits at the higher levels. But early buying in the auto stocks and some of the beaten down stocks of last session helped the market to quickly regain its position, but bouts of profit booking continued with mixed set of earnings announcements. It was in the afternoon trade that market gained momentum and surged to its high point of the day as the other Asian markets reversed their losses and the European markets made a positive start. But the investors lacked conviction and once again opted to take profit off the table and the index suffered a sharp slide plunging to its intraday low in the final hours and it seemed that the market will continue its somber mood and will again close in red. It was the final moments buying in the banking and ADAG stocks that led the markets back into green, finally closing with modest gains.

On the sectoral front Losses in FMCG, realty and metals were offset by gains in capital goods, banks and pharmaceutical stocks. While Bank Nifty closed with gains of 0.55%, CNX Realty and CNX IT closed with losses of 0.49% and 0.14% respectively. On the global front, barring the Chinese market all other Asian markets closed in green, while the European market, which have put jitters in the global markets made an all green start and all the major indices were trading with quarter-to-half a percent of gains.

The India VIX declined 5.27% at 19.93 on Tuesday as compared to its previous close of 21.04 on Monday.  

The 50-share S&P CNX Nifty added 8.30 points or 0.15% and settled at 5,394.85.

Nifty May 2011 futures closed at 5,393.90, at a discount of 0.95 points over spot closing of 5,394.85, while Nifty June 2011 futures were at 5,392.65 at a discount of 2.20 points over spot closing. The near month May 2011 derivatives contract expires on Thursday, May 26, 2011. Nifty May futures saw addition of 9.32% or 2.21 million (mn) units, taking the total outstanding open interest (OI) to 26.00 mn units.

From the most active underlying, SBI’s May 2011 futures closed at a premium of 7.95 points at 2232.70 compared with spot closing of 2224.75. The number of contracts traded was 29,350.

Tata Steel May 2011 futures were at a premium of 1.55 point at 567.00 compared with spot closing of 565.45. The number of contracts traded was 28,454.

Tata Motors May 2011 futures were at a premium of 2.20 points at 1128.20 compared with spot closing of 1126.00. The number of contracts traded was 20,010.

ICICI Bank May 2011 futures were flat at 1020.65 compared with spot closing of 1020.65. The number of contracts traded was 21,134.

BHEL May 2011 futures were at a discount of 2.00 points at 1945.00 compared with spot closing of 1947.00. The number of contracts traded was 18,876. 

For Nifty calls, 5400 strike price (SP) from the May series was the most active call with an addition of 0.36 million or 5.23%.

Among Nifty puts, 5400 SP from the May month expiry was the most active put with an addition of 0.48 million or 7.43%.

The maximum Call OI outstanding was at 5400 SP (6.96 mn) and that for Puts at 5400 SP (6.94mn).

The respective Support and Resistance levels are: Resistance 5422.48-- Pivot Point 5394.96-- Support 5367.33.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.65 for May-month contract.

The top five scrips with highest PCR on OI were Bharat Forge -10.00, Grasim Industries -4.17, BRFL-1.53, Ranbaxy Lab-1.44 and Hero Honda-1.23.

Among most active underlying State Bank of India (SBI) witnessed a contraction of 0.53% in the May month futures contract, followed by Tata Steel which gained 1.79% of Open Interest (OI) in the near month contract. Meanwhile, DLF witnessed contraction of 9.05% in this month futures coupled with Tata Motors which added 8.13% in the May month future contract. Lastly, ICICI Bank saw a contraction of 2.98% in its OI in the May month futures contract.