Nifty snaps August F&O series with a massive gain of over 5%

The domestic index S&P CNX Nifty finished the July F&O series with a massive gain of over 270 points or 5 percent, after losing about 2 percent in July series. Today, Nifty snapped the day’s trade with a half a percent of gains reclaiming its crucial 5,300 mark as surprise recovery was witnessed in the last leg of trade. However, the index traded in the red for most part of the day’s trade as mounting worries over policy paralysis in the wake of the parliamentary logjam over controversial CAG report on coal blocks, continued to dampen the sentiments. The global cues too remained unsupportive as uncertainty over central banks’ action to fight slower global growth sent world shares and industrial commodity prices lower on Thursday, while nervousness ahead of a meeting of central bankers in the United States also curbed risk appetite.

Initially, market started the trade on soft note as investors remained on the safer side ahead of first quarter GDP numbers scheduled to be announced on Aug 31, also the RBI’s governor stating that high inflation and wrecked government finances leave little room for either the central bank or the government to throw policy lifeline, has put the rate sensitives’ in cautious mood. Market continued to trade choppy till mid noon seesion as European counters too failed to give any support to Indian equity market. However, the index witnessed an unexpected turnaround in the final half an hour of trade and clocked gains of over half a percent led by recovery in Banking, Auto and software stocks. Nifty, in the late trade, regained its crucial 5,300 bastion as realty space emerged as a strong pillar of strength for the bourses garnering over a gain of over one and half a percent as short covering was seen in the counter after few days of continues fall. Finally, Nifty ended the day’s trade at a comfortable 5,300 level with a gain of over half a percent.

Meanwhile, most of the sectoral indices on the NSE were settled in the green, CNX Realty remained the major gainer, up 1.59% followed by CNX Media up 1.22% and CNX PSU Bank up by 0.80% while CNX Metal declined 0.42% remained the lone gainer in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 0.42% and reached 16.67.

The India VIX witnessed contraction of 0.42% at 16.67 as compared to its previous close of at 16.74 on Wednesday.

The 50-share S&P CNX Nifty gained 27.25 points or 0.52% to settle at 5,315.05.

Nifty September 2012 futures closed at 5330.15 on Thursday at a premium of 15.10 points over spot closing of 5,315.05, while Nifty October 2012 futures were at 5356.55 at a premium of 41.50 points over spot closing. Nifty September futures saw an addition of 5.13 million (mn) units taking the total outstanding open interest (OI) to 20.49 mn units. The near month September 2012 derivatives contract will expire on Thursday i.e. September 27, 2012.

From the most active contracts, Tata Steel September 2012 futures were at a premium of 2.75 points at 368.60 compared with spot closing of 365.85. The number of contracts traded was 17,558.

ICICI Bank September 2012 futures were trading at a discount of 2.05 points at 923.70 compared with spot closing of 925.75. The number of contracts traded was 19,182.

HDFC August 2012 futures were at a discount of 5.80 point at 722.20 compared with spot closing of 728.00. The number of contracts traded was 18,043.

Tata Motors August 2012 futures were at a discount of 1.25 points at 236.75 compared with spot closing of 238.00. The number of contracts traded was 14,436.

SBI September 2012 futures were at a premium of 6.60 point at 1851.90 compared with spot closing of 1845.30. The number of contracts traded was 29,839.

Among Nifty calls, 5600 SP from the September month expiry was the most active call with an addition of 0.67 million open interest.

Among Nifty puts, 5200 SP from the September month expiry was the most active put with an addition of 1.13 million open interest.

The maximum OI outstanding for Calls was at 5600 SP (3.75 mn) and that for Puts was at 5200 SP (5.59 mn).

The respective Support and Resistance levels are: Resistance 5353.55 -- Pivot Point 5304.30--Support 5265.80.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.10 for September-month contract.

The top five scrips with highest PCR on OI were OnMobile Global 5.56, Bank of Baroda 1.72, Punj Lloyd 1.60, Essar Oil 1.50, and Tech Mahindra 1.47.

Among the most active underlying, IFCI witnessed an addition of 12.74 million of Open Interest in the September month futures contract followed by JP Associates which witnessed an addition of 8.17 million of Open Interest in the near month contract. Meanwhile, Reliance Communications witnessed an addition of 3.27 million in the September month futures. Also, MTNL witnessed an addition of 2.18 million in Open Interest in the September month contract. Finally, Hindalco Industries witnessed an addition of 3.16 million of Open Interest in the near month futures contract.