Nifty gains marginally after previous session’s drubbing

After witnessing drubbing in previous session, domestic index Nifty heaved a sigh of relief garnering a marginal gain in Wednesday’s trade. Global cues supported the domestic bourses as most of the Asian equity indices ended in the positive terrain after Moody’s reaffirmed its rating on Spanish debt, which helped Australian and Hong Kong shares to touch biggest gains in almost three weeks. Moreover, European indices too galloped in the early deals on speculation that Spain was a step closer to requesting a bailout.

The market opened higher on the back of strong global cues, recording intraday high in the very beginning. The sentiments were also supported by the country’s fourth largest software services provider HCL Technologies registering a bigger-than-expected 76% surge in July-September net profit at Rs 699.84 crore. Afterwards, profit booking emerged at higher levels and the index started to drift lower. Market, for rest of the session, exhibited consolidation as investors remained sideways in the absence of any significant trigger at domestic front. Meanwhile, positive opening in European counters helped the local benchmark to grab green terrain but, the index was unable to capitalize on it due to selling in some realty stocks. The realty space tumbled over half a percent led by DLF which extended its Tuesday’s losses as a land deal between Congress chief Sonia Gandhi’s son-in-law Robert Vadra and DLF came to spotlight after the Haryana state government early this week transferred a senior officer Ashok Khemka after he ordered a probe into Robert Vadra’s land deals in the state. However, some value buying in dying hours helped market to end the session in the green, recapturing its crucial 5,650 mark.

Most of the sectoral indices on the NSE settled in the green, CNX Media remained the major gainer, up 2.80% followed by CNX Infra up 0.90% and CNX Auto up by 0.47% while CNX Realty and CNX Metal declined 0.56% and 0.43% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 2.57% and reached 15.17.

India VIX, a gauge for markets short term expectation of volatility lost 2.57% at 15.17 from its previous close of 15.57 on Tuesday.

The 50-share S&P CNX Nifty gains 12.25 points or 0.22% to settle at 5,660.25

Nifty October 2012 futures closed at 5669.50 on Wednesday at a premium of 9.25 points over spot closing of 5,660.25, while Nifty November 2012 futures were at 5698.55 at a premium of 38.30 points over spot closing. Nifty October futures saw contraction of 0.28 million (mn) units taking the total outstanding open interest (OI) to 23.74 mn units. The near month October 2012 derivatives contract will expire on October 25, 2012.

From the most active contracts, Tata Motors October 2012 futures were trading at a premium of 1.05 at 265.65 compared with spot closing of 264.60. The number of contracts traded was 10,143.

HDIL October 2012 futures were trading at a discount of 0.15 at 102.20 compared with spot closing of 102.35. The number of contracts traded was 12,149.

DLF October 2012 futures were at a premium of 1.35 point at 202.05 compared with spot closing of 200.70. The number of contracts traded was 17,785.

Tata Steel October 2012 futures were at a premium of 2.45 point at 408.25 compared with spot closing of 405.80. The number of contracts traded was 12,566.

ICICI Bank October 2012 futures were at a premium of 5.85 point at 1053.90 compared with spot closing of 1048.05. The number of contracts traded was 9,888.

Among Nifty calls, 5800 SP from the October month expiry was the most active call with an addition of 1.68 million open interest.

Among Nifty puts, 5500 SP from the October month expiry was the most active put with an addition of 2.08 million open interest.

The maximum OI outstanding for Calls was at 5800 SP (11.73mn) and that for Puts was at 5500 SP (8.55mn).

The respective Support and Resistance levels are: Resistance 5685.1 -- Pivot Point 5659.5 --Support 5634.65.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.93 for October - month contract.

The top five scrips with highest PCR on OI were ITC 1.66, PNB 1.61, AXIS Bank 1.28, ACC 1.00 and ABB 1.00.

Among the most active underlying, Jaiprakash Associates witnessed contraction of 0.25 million of Open Interest in the October month futures contract followed by IFCI which witnessed contraction of 0.67 million of Open Interest in the near month contract. Meanwhile, Unitech witnessed contraction of 0.44 million in the October month futures. Also, RCOM witnessed contraction of 0.86 million in Open Interest in the October month contract. Finally, Shree Renuka Sugars witnessed contraction of 0.27 million of Open Interest in the near month futures contract.