Nifty snaps the May F&O series lower by 6.5%

The domestic index S&P CNX Nifty finally managed to close the May series above 5400 level, however the series performance was dismal and it closed lower by around 6.5 percent from the last series. The market mood looked jubilant since morning on supportive global cues and slowly, as the trades proceed the index started gaining strength and by the noon it touched its high point of the day, though the inflation for the week ended May 14 once again surged and added some jitters to the rate sensitive’s but spurt in the oil & gas stocks led the market higher. Being the F&O series expiry day, volatility was bound to appear and it did so in the final hours when the index after showing a slight sign of slipping, witnessed a sudden spike up, taking the benchmark comfortably above 5400 mark, supported by short covering in the heavy weights that have lost considerably in last few trades.

It was an across the board buying that helped the markets move higher, on sectoral front too barring the IT sector all others were able to garner good gain for the day, Bank Nifty gained 1.09%, CNX Infra was up by 0.83%, CNX Realty gained 0.78%, while the CNX IT lost 0.11%. From the global markets, most of the Asian markets closed higher though, Chinese market closed marginally in red. The European markets are trading mixed in the early trade today, while CAC and FTSE 100 are in green, the DAX has declined.

The India VIX lost 7.16% at 19.18 on Thursday as compared to its previous close of 20.66 on Wednesday.  

The 50-share S&P CNX Nifty added 63.40 points or 1.19% and settled at 5,412.35.

Nifty May 2011 futures closed at 5,412.55, at a premium of 0.20 points over spot closing of 5,412.35, while Nifty June 2011 futures were at 5,395.95 at a discount of 16.40 points over spot closing. The near month May 2011 derivatives contract expires today. Nifty May futures saw addition of 1.93% or 0.33 million (mn) units, taking the total outstanding open interest (OI) to 17.74 mn units.

From the most active underlying, SBI’s May 2011 futures closed at a discount of 5.95 points at 2188.10 compared with spot closing of 2194.05. The number of contracts traded was 44,047.

SBI’s June 2011 futures were at a premium of 15.40 point at 2209.45 compared with spot closing of 2194.05. The number of contracts traded was 36,049.

RIL May 2011 futures were at a premium of 2.45 points at 933.75 compared with spot closing of 931.30. The number of contracts traded was 31,515.

Tata Motors May 2011 futures were at a discount of 3.45 at 1162.05 compared with spot closing of 1165.50. The number of contracts traded was 25,008.

Tata Motors June 2011 futures were at a discount of 3.90 points at 1161.60 compared with spot closing of 1165.50.

The number of contracts traded was 24,031. For Nifty calls, 5400 strike price (SP) from the May series was the most active call with a contraction of 3.28 million or 44.83%.

Among Nifty puts, 5400 SP from the May month expiry was the most active put with a contraction of  0.06 million or 14.12%.

The maximum Call OI outstanding was at 5400 SP (4.04mn) and that for Puts at 5400 SP (4.96mn).

The respective Support and Resistance levels are: Resistance 5437.58-- Pivot Point 5396.96-- Support 5371.73.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.68 for May-month contract.

The top five scrips with highest PCR on OI were Bharat Forge-10.00, MRF- 6, TV-18-5.80, BRFL- 3.83 and Jindal Saw-2.

Among most active underlying State Bank of India (SBI) witnessed an contraction of 37.46% in the May month futures contract, followed by Reliance Industries which contracted 23.94% of Open Interest (OI) in the near month contract. Meanwhile, Tata Motors too witnessed contraction of 11.02% in this month futures coupled with L&T which declined 8.09% in the May month future contract.