Nifty ends with slender gains; manages to hold 5,400 level

After trading jubilantly during first half of the session, Indian Benchmark Nifty surrendered most of gains to end the day flat as investors booked their profit amid political deadlock over CAG reports. On the global front, most Asian markets ended with green mark as minutes from the US Federal Reserve's most recent meeting indicated that many members of the central bank's policy-setting committee were ready to introduce more stimulus measures if there is no recovery in economic growth while, European counters traded in the positive terrain in the early trade. Back home, the rupee rose to its best level in more than one week today after the government made it easier for companies to tap overseas funds. The Centre has eased overseas borrowing rules, including allowing non-resident entities to provide some guarantees for external borrowings.

Initially, market made a decent opening buoyed by firm global cues. Afterwards, the index extended its rally supported by software stocks, which witnessed jubilant run through the day after minutes from the US Federal Reserve showed that the central bank’s policy committee discussed a third round of quantitative easing at its last meeting. The mood remained cheerful in the morning buoyed by strong FII inflows. Provisional data showing that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Wednesday, August 22, 2012, boosted sentiment. Foreign institutional investors (FIIs) bought shares worth net Rs 96.63 crore from the secondary equity markets. Market continued its northward journey and hit its intraday high near its crucial 5,450 level following firm trend in European counters. Moreover, metal space too aided the sentiments garnering over half a percent gains as global commodity futures advanced in Asia on expectations of further easing of monetary policy from US and China. But, in the last leg of trade, the local benchmark lost its control over the market and entered into the red terrain as investors booked their profits at higher levels. The pressure also came in from oil and gas space, which lost over a percent led by index heavyweight Reliance Industries, which lost over one and half a percent due to worries about lower refining margins. However, market managed to hold its crucial 5,400 level and negotiated a positive close in the end.

Back home, on NSE sectoral space CNX Auto losing the most, ending with a cut of 0.87% followed by CNX Infra down by 0.71% and CNX Media down by 0.70% while, CNX Pharma up 0.93% and CNX FMCG up by 0.82% remained top gainers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, rose 0.75% and reached 16.12.

The India VIX witnessed an addition of 0.75% at 16.12 as compared to its previous close of at 16.00 on Wednesday.

The 50-share S&P CNX Nifty gained 2.50 points or 0.05% to settle at 5,415.35.

Nifty August 2012 futures closed at 5427.15 on Thursday at a premium of 11.80 points over spot closing of 5,415.35, while Nifty September 2012 futures were at 5454.15 at a premium of 38.80 points over spot closing. Nifty August futures saw a contraction of 0.27 million (mn) units taking the total outstanding open interest (OI) to 25.85 mn units. The near month August 2012 derivatives contract will expire on Thursday i.e. August 30, 2012.

From the most active contracts, Bharti Airtel August 2012 futures were at a premium of 1.20 points at 249.70 compared with spot closing of 248.50. The number of contracts traded was 13,785.

Tata Motors August 2012 futures were trading at a premium of 0.45 points at 245.20 compared with spot closing of 244.75. The number of contracts traded was 15,365.

Tata Steel August 2012 futures were at a premium of 0.40 point at 399.40 compared with spot closing of 399.00. The number of contracts traded was 15,253.

Reliance Industries August 2012 futures were at a premium of 3.50 points at 797.30 compared with spot closing of 793.80. The number of contracts traded was 10,903.

ICICI Bank August 2012 futures were at a premium of 3.30 point at 976.10 compared with spot closing of 972.80. The number of contracts traded was 19,580. 

Among Nifty calls, 5500 SP from the August month expiry was the most active call with an addition of 0.26 million open interest.

Among Nifty puts, 5000 SP from the August month expiry was the most active put with marginal contraction in open interest.

The maximum OI outstanding for Calls was at 5500 SP (10.28 mn) and that for Puts was at 5000 SP (9.94 mn).

The respective Support and Resistance levels are: Resistance 5444.68 -- Pivot Point 541926 -- Support 5389.93.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.84 for August -month contract.

The top five scrips with highest PCR on OI were Orient Bank 5.00, M&M 2.07, Hindunilvr 1.79, PTC 1.75 and IDFC 1.62. 

Among the most active underlying, Suzlon witnessed contraction of 29.96 million of Open Interest in the August month futures contract followed by Alok Text which witnessed contraction of 12.80 million of Open Interest in the near month contract. Meanwhile, IFCI witnessed contraction of 2.70 million in the August month futures. Also, RCOM witnessed contraction of 1.76 million in Open Interest in the August month contract. Finally, MTNL witnessed an addition of 3.58 million of Open Interest in the near month futures contract.