Buying in late hour helps Nifty to end in green

After trading choppy for most part of the day’s trade, the 50-share NSE Nifty ended the session slightly in the green quite nicely on the back of late hour recovery following positive European cues. The European markets traded comfortably in the green after a Spanish official comment at the IMF/World Bank an annual meeting, saying that Spain’s bailout request is likely in November while, Asian counters end mixed on Monday amid growth concerns ahead of the third-quarter corporate earnings season. Meanwhile, world’s second-largest economy, China, reported 1.9% rise in September inflation, while exports rebounded at nearly twice the rate expected, ahead of Chinese gross domestic product (GDP) numbers in this week.

Back home, the local benchmark pulled back after touching intraday low near its crucial 5,650 mark in the noon trade as the inflation touched 2012 high by climbing to 7.81 percent from 7.55 percent in August as prices of potato, pulses, wheat and sugar soared. The impact of increase in diesel prices was also partly reflected in last month’s figures. High speed diesel inflation soared 8.94% after the government increased diesel prices by Rs 5 on September 13. However, rate cut hopes in RBI’s upcoming second quarterly policy review on October 30, provided cushion to the markets, after traders examined that core inflation for the month of September remain unchanged at 5.56 percent and statement from RBI Deputy Governor that current anti-inflationary policy stance could be ineffective if financial imbalances remain. Additionally, oil and gas too supported the frontline indices gaining over half a percent led by market bellwether Reliance Industries, which surged over half percent ahead of its Q2 earnings provided impetus to the hibernating bulls. In a quarter led by refining, the company is expected to post an over 20 percent growth in profits sequentially. However, the gains remain capped as Metal stocks like, Sesa Goa, Sterlite Industries, JSW Steel, Hindustan Zinc and Bhushan Steel all edged lower as LMEX, a gauge of six metals traded on the London Metal Exchange, fell 1.61% to 3,438.20 on October 12, 2012. Finally, Nifty ended the session slightly in the positive terrain with a gain of just over ten points.

Meanwhile, most of the sectoral indices on the NSE settled in green, CNX FMCG remained the major gainer, up 0.66% followed by CNX PSU Bank up 0.56%, CNX Realty up 0.54%, Bank Nifty up 0.47% and CNX Energy up by 0.41% while, CNX IT and CNX Media lost 0.75% and 0.51% respectively. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 3.58% and reached 15.90.

India VIX, a gauge for markets short term expectation of volatility lost 3.57% at 15.90 from its previous close of 16.49 on Friday .The 50-share S&P CNX Nifty lost 11.20 points or 0.20% to settle at 5,687.25.

Nifty October 2012 futures closed at 5702.75 on Monday at a premium of 15.50 points over spot closing of 5,687.25, while Nifty November 2012 futures were at 5732.35 at a premium of 45.10 points over spot closing. Nifty October futures saw contraction of 0.26 million (mn) units taking the total outstanding open interest (OI) to 24.60 mn units. The near month October 2012 derivatives contract will expire on October 25, 2012.

From the most active contracts, Jaiprakash Associates October 2012 futures were trading at a premium of 0.70 at 91.55 compared with spot closing of 90.85. The number of contracts traded was 10,117.

BHEL October 2012 futures were trading at a premium of 0.50 at 249.75 compared with spot closing of 249.25. The number of contracts traded was 8,767.

Tata Steel October 2012 futures were at a discount of 1.80 point at 419.25 compared with spot closing of 421.05. The number of contracts traded was 11,740.

Reliance industries October 2012 futures were at a discount of 3.40 point at 823.45 compared with spot closing of 826.85. The number of contracts traded was 9,424.

United Spirits October 2012 futures were at a premium of 4.00 point at 1,229.00 compared with spot closing of 1,225. The number of contracts traded was 8,347.

Among Nifty calls, 5800 SP from the October month expiry was the most active call with an addition of 0.10 million open interest.

Among Nifty puts, 5600 SP from the October month expiry was the most active put with an addition  of 0.71 million open interest.

The maximum OI outstanding for Calls was at 5800 SP (9.17mn) and that for Puts was at 5600 SP (7.69 mn).

The respective Support and Resistance levels are: Resistance 5703.61 -- Pivot Point 5677.33 --Support 5660.96.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.91 for October - month contract.

The top five scrips with highest PCR on OI were ITC 1.55, PNB 1.52, AXIS Bank 1.03, HUL 1.03 and ABB 1.00.

Among the most active underlying, IFCI, witnessed an addition of 0.13 million of Open Interest in the October month futures contract followed by Unitech which witnessed an addition of 4.69 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed contraction of 0.44 million in the October month futures. Also, NHPC witnessed contraction of 0.75 million in Open Interest in the October month contract. Finally, RCOM witnessed an addition of 1.20 million of Open Interest in the near month futures contract.