Nifty surges past 5,700 level on sanguine global and domestic cues

S&P CNX Nifty concluded the trade on a strong note on Tuesday, a day ahead of the F&O November series expiry. After a smart opening the market remained in fine fettle throughout the session taking cues from the global markets as well as domestic developments. Government which looked apprehensive last day after an all party meet failed to come to any conclusion to end the logjam in the Parliament over voting on the FDI issue in multi brand retail, looked relaxed as the opposition remained disintegrated while it got the support from its ally DMK on the issue.

On the global front, though the Asian markets made a mixed closing but the mood turned sanguine after European markets made a positive start after European finance ministers eased the terms on emergency aid for Greece. Traders were happy that Europe finally found the formula for nursing the debt-stricken country back to health.

Back home the morale of the local traders were boosted with global rating agency Moody's saying that outlook for India's investment grade credit rating was stable. Moody's cited ‘credit strengths which include a large, diverse economy, strong GDP growth as well as savings, and investment rates that exceed emerging market averages.’

In the F&O segment on NSE, total turnover of worth Rs 2,05,911.40 crore was recorded while, the number of contracts traded were 71,73,657, the put-call ratio for the stood at 1.04. All the sectoral indices on the NSE settled in green, CNX Realty surged by 3.56%, CNX FMCG gained 2.16%, CNX Finance was up by 2.04%, Bank Nifty was up by 1.97%, CNX Service was higher by 1.85%, CNX Metal gained 1.43%, CNX IT was up by 1.26%, CNX Pharma up by 0.87% and CNX Media up by 0.65% were the major gainers.  The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined by 4.84% and reached 13.96.

The India VIX witnessed contraction of 0.71% at 13.96 as compared to its previous close of at 14.67 on Monday.

The 50-share S&P CNX Nifty gained 91.55 points or 1.62% to settle at 5,727.45.

Nifty November 2012 futures closed at 5732.05 on Tuesday at a premium of 4.6 points over spot closing of 5,727.45, while Nifty December 2012 futures ended at 5769.3, at a premium of 41.85 points over spot closing. Nifty November futures saw contraction of 2.12 million (mn) units taking the total outstanding open interest (OI) to 9.37 mn units. The near month November 2012 derivatives contract will expire on November 29, 2012.

From the most active contracts, Tata Motors November 2012 futures were trading at a premium of 0.35 at 266.85 compared with spot closing of 266.50. The number of contracts traded was 20,674.

Tata Steel November 2012 futures were trading at a discount of 0.40 at 376.15 compared with spot closing of 376.55. The number of contracts traded was 18,606.

Reliance Industries November 2012 futures were at a premium of 1.05 point at 786.55 compared with spot closing of 785.50. The number of contracts traded was 24,368.

ICICI Bank November 2012 futures were at a premium of 0.75 point at 1036.65 compared with spot closing of 1,035.90. The number of contracts traded was 26,746.

State Bank of India November 2012 futures were at a premium of 8.3 point at 2119.3 compared with spot closing of 2,111.00. The number of contracts traded was 33,407.       

Among Nifty calls, 5,800 SP from the November month expiry was the most active call with an addition of 0.72 million open interest.

Among Nifty puts, 5,600 SP from the November month expiry was the most active put with contraction of 0.05 million open interest.

The maximum OI outstanding for Calls was at 5800 SP (8.91mn) and that for Puts was at 5600 SP (8.48 mn).

The respective Support and Resistance levels are: Resistance 5754.43 -- Pivot Point 5706.22 -- Support 5679.23.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.35 for November -month contract.

The top five scrips with highest PCR on OI were Welcorp 16.00, Titan 1.85, Axis Bank 1.78, HDFC Bank 1.78 and Maruti 1.73.

Among most active underlying, Unitech witnessed contraction of 9.75 million of Open Interest in the November month futures contract followed by NHPC which witnessed an addition of 22.12 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed contraction of 10.82 million in the November month futures. Also, RCOM witnessed contraction of 16.62 million in Open Interest in the November month contract. Finally, IFCI witnessed contraction of 17.81 million of Open Interest in the near month futures contract.