Nifty gather gains for fifth day in a row

CNX S&P Nifty continued its northbound journey for fifth consecutive day with gain of over 20 points. After witnessing lackluster session for most part of the day’s trade, market picked pace in the late trade following rally in European counters. Investors are cautious ahead the US elections, which kept them away from taking large positions ahead of the US Presidential Election as opinion polls indicated a neck-to-neck fight between President Barack Obama and Republican challenger Mitt Romney. Meanwhile, Asian markets shut shop mostly in the red on Tuesday on renewed doubts over Greece's ability to push through severe fiscal reforms and ahead of China’s Party Congress meet, scheduled to start on Nov 7, as Asia’s largest economy is expected to unveil the next generation of Chinese leaders.

Earlier, the Indian market made a muted start tracking weak global cues but, immediately turned into the green after Planning Commission Deputy Chairman Montek Singh Ahluwalia said that the government is taking several steps to boost investor confidence and more such measures may follow. Buying in rate sensitive -- banking -- too soothed the sentiments on some consoling news that the Reserve Bank of India may go for easing monetary policy as early as January. But, market turned red in the noon trade following weak opening in European counters. Recovery was seen in last leg of trade as sentiments got some boost as realty firms such as HDIL gained on hopes for a pickup in demand tied to the Diwali festival season in mid-November, a time considered auspicious in the country. Moreover, recovery in European markets too aided the sentiments. Some amount of support also came in from PSU segment, which rose about half a percent as government is planning to raise around Rs 1,400 crore by selling a 12.15 percent stake in National Aluminum Company on Nov 9, as it seeks to urgently revive the stuttering disinvestment programme. Buying in healthcare space too aided the sentiments, healthcare gained about a percent led by Cipla which reported better than expected second quarter numbers. Cipla reported 62 percent spike year-on-year in its net profit to Rs 500 crore for the quarter ended September 2012. Finally, Nifty ended the session comfortably above its crucial 5,700 bastion with a gain of above twenty points.

Meanwhile, most of the sectoral indices on the NSE were settled in the green, CNX Realty remained the major gainer, up 2.11% followed by CNX PSU Bank up 0.84% and CNX Pharma up by 0.73% while CNX Auto and CNX Metal declined 0.08% and 0.10% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, increased by 3.96% and reached 15.21.

The India VIX witnessed an addition of 3.96% at 15.21 as compared to its previous close of at 14.63 on FMonday.

The 50-share S&P CNX Nifty gained 20.20 points or 0.35% to settle at 5,724.40.

Nifty November 2012 futures closed at 5766.65 on Tuesday at a premium of 42.25 points over spot closing of 5,724.40, while Nifty December 2012 futures ended at 5798.80, at a premium of 74.40 points over spot closing. Nifty November futures saw an addition of 0.38 million (mn) units taking the total outstanding open interest (OI) to 19.05 mn units. The near month November 2012 derivatives contract will expire on November 29, 2012.

From the most active contracts, Hindalco Industries November 2012 futures were trading at a premium of 1.05 at 113.45 compared with spot closing of 112.40. The number of contracts traded was 9,280.

HDIL November 2012 futures were trading at a premium of 0.25 at 106.40 compared with spot closing of 106.15. The number of contracts traded was 11,411.

Tata Motors November 2012 futures were at a premium of 2.25 point at 269.15 compared with spot closing of 266.90. The number of contracts traded was 14,791.

DLF November 2012 futures were at a premium of 1.70 point at 208.05 compared with spot closing of 206.35. The number of contracts traded was 9,996.

Reliance Industries November 2012 futures were at a premium of 5.65 point at 811.65 compared with spot closing of 806.00. The number of contracts traded was 12,511.

Among Nifty calls, 5900 SP from the November month expiry was the most active call with an addition of 0.37 million open interest.

Among Nifty puts, 5600 SP from the November month expiry was the most active put with an addition of 0.46 million open interest.

The maximum OI outstanding for Calls was at 5900 SP (7.10 mn) and that for Puts was at 5600 SP (7.23 mn).

The respective Support and Resistance levels are: Resistance 5738.91 -- Pivot Point 5716.28 -- Support 5701.77.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.17 for November -month contract.

The top five scrips with highest PCR on OI were GUJ Fluoro 2.67, Maruti 1.64, Tata Motors 1.60, Canara Bank 1.34, and Titan 1.34.

Among most active underlying, Unitech witnessed an addition of 4.24 million of Open Interest in the November month futures contract followed by Jaiprakash Associates  which witnessed an addition of 0.76 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed contraction of 1.09 million in the November month futures. Also, HDIL witnessed an addition of 4.87 million in Open Interest in the November month contract. Finally, Hindalco witnessed an addition of 2.15 million of Open Interest in the near month futures contract.