Nifty nears 5,900 mark; surges for third consecutive day

S&P CNX Nifty came very close to 5,900 mark on Friday on its run to touch the 6,000 level once again. The mood of the market remained jubilant since morning and trade firmed up despite the dismal GDP numbers. Indian GDP slowed down to 5.3% in the second quarter against 5.5% in first quarter and 6.7% in same quarter last year. After initial jitters of GDP, the market stabilized and once again started moving up to close at new high of the year and near day’s high, giving a good start to the new series.

In early deals the traders took cues from the global markets, as the US markets ended higher overnight, while most of the Asian markets made a green start, there was recovery in the Chinese market after S&P affirmed China's sovereign credit rating and the government of Japan announced second round of stimulus.

Back home, the bull run continued at the Street and apart from benchmarks the broader indices heavily participated in today’s rally. Metal along with Power sector stocks remained in demand as the finance Minister stated that the government has proposed the setting up of a National Investment Board (NIB) to monitor and advise ministries on expediting projects entailing investments in excess of Rs 1,000 crore, and Power Minister demanded Rs 36,000 crore for meeting the 12th plan target of providing electricity under RGGVY.

There was broad based buying witnessed on the street. Most of the sectoral indices on the NSE, settled in green, CNX PSU Bank surged by 2.53%, CNX PSE gained 2.04%, CNX Metal was up by 2.03%, CNX Finance gained 1.76%, Bank Nifty was up by 1.38%, were the major gainers. On the other hand, CNX Media was down by 0.82%, CNX MNC was down by 0.60%, CNX Auto was down by 0.24%, CNX FMCG lost 0.22% and CNX Realty ended down by 0.13%. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined by 1.43% and reached 15.15.

The India VIX witnessed contraction of 1.43% at 15.15 as compared to its previous close of at 15.37 on Thursday.

The 50-share S&P CNX Nifty gained 54.85 points or 0.94% to settle at 5,879.85.

Nifty December 2012 futures closed at 5909.05 on Friday at a premium of 29.2 points over spot closing of 5,879.85, while Nifty January 2013 futures ended at 5941.6, at a premium of 61.75 points over spot closing. Nifty December futures saw an addition of 1.51million (mn) units taking the total outstanding open interest (OI) to 19.40 mn units. The near month December 2012 derivatives contract will expire on December 27, 2012.

From the most active contracts, Suzlon Energy December 2012 futures were trading at a discount of 0.25 at 19.3 compared with spot closing of 19.55. The number of contracts traded was 14,070.

RCOM December 2012 futures were trading at a   premium of 0.30 at 71.95 compared with spot closing of 71.65. The number of contracts traded was 13,502.

Tata Motors December 2012 futures were at a premium of 1.05 point at 275.85 compared with spot closing of 274.80. The number of contracts traded was 48,924.

Karnataka Bank December 2012 futures were at a premium of 0.80 point at 176.8 compared with spot closing of 176.00. The number of contracts traded was 20,835.

DLF December 2012 futures were at a premium of 1.60 point at 211.95 compared with spot closing of 210.35. The number of contracts traded was 13,653.            

Among Nifty calls, 6,000 SP from the December month expiry was the most active call with an addition of 0.53 million open interest.

Among Nifty puts, 5,700 SP from the  December month expiry was the most active put with  an addition  of 0.64 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (6.56mn) and that for Puts was at 5700 SP (5.40 mn).

The respective Support and Resistance levels are: Resistance 5900.78 -- Pivot Point 5864.31 -- Support 5843.38.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.37 for December -month contract.

The top five scrips with highest PCR on OI were PNB 2.10, Bharti Airtel 1.30, Wipro 1.12, HDFC Bank 1.06 and Kotak Bank 1.05.

Among most active underlying, Suzlon Energy witnessed  an addition  of 34.85 million of Open Interest in the December month futures contract followed by Unitech which witnessed  contraction of 0.92 million of Open Interest in the near month contract. Meanwhile, GMR Infrastructure witnessed an addition of 6.65 million in the December month futures. Also, RCOM witnessed an addition of 2.61 million in Open Interest in the December month contract. Finally, IFCI witnessed an addition of 3.50 million of Open Interest in the near month futures contract.