S&P CNX Nifty crosses 5,900 mark for the first time since April 13, 2011

S&P CNX Nifty despite remaining in a tight range crossed its historical mark of ending beyond 5,900 for the first time since April 13, 2011. Though the trade remained volatile and the traders continued on the sidelines ahead of the crucial vote on the FDI in multi brand retail in the Parliament. The government looked confident of sailing through the vote but the traders’ anxiety remained and they preferred to place the bet once the thing finally gets over.

The global cues despite some weak economic reports turned supporting in the latter trade. Asian markets ended mostly in green, while the Chinese markets showed extra enthusiasm, surging over 3% on new Communist Party chief Xi Jinping’s statement that the government aimed to stabilize exports and make policies more targeted and effective. The European markets too made a strong start despite the report that Euro-area services and manufacturing output shrank for a 10th month in November. On the domestic front too, the Services PMI slumped to 13 month low. However, the markets remained firm and the broader indices were in demand that took the markets for a positive close.

Though all eyes were on the parliament but traders selectively picked up stocks, with metal and realty getting maximum demand. The IT sector once again remained in somber mood on globally induced pressure on demand concern after Cognizant Technology Solutions Corp issued lower revenue growth guidance for 2013 based on compensation targets for top executives. Cognizant, in a filing to the US market regulator Securities and Exchange Commission (SEC) said that its top executives will receive 100 percent of their performance-linked shares if the company achieves revenue of $8.5 billion next year, a 16 percent rise over its projected 2012 revenue. On the sectoral front on NSE, most of the indices closed in green, though CNX IT again turned out to be the laggard down by 1.35%, along with CNX Consumption down by 0.47%, CNX Services down by 0.15% and CNX Infra down by 0.13%. On the other hand, CNX Realty up by 2.66%, CNX PSU Bank up by 1.56%, CNX Metal up by 1.35%, CNX Media up by 0.65%, CNX Energy up by 0.45% and CNX Finance up by 0.43% were the top gainers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged by 4.46% and reached 16.62.

The India VIX witnessed an addition of 4.46% at 16.62 as compared to its previous close of at 15.91 on Tuesday.

The 50-share S&P CNX Nifty gained 11.25 points or 0.19% to settle at 5,900.50.

Nifty December 2012 futures closed at 5940.45 on Wednesday at a premium of 39.95 points over spot closing of 5,900.50, while Nifty January 2013 futures ended at 5973.40, at a premium of 72.90 points over spot closing. Nifty December futures saw an addition of 0.68 million (mn) units taking the total outstanding open interest (OI) to 20.43 mn units. The near month December 2012 derivatives contract will expire on December 27, 2012.

From the most active contracts, JP Associates December 2012 futures were at a discount of 0.30 at 100.55 compared with spot closing of 100.85. The number of contracts traded was 14,050.

Reliance Power December 2012 futures were at a premium of 0.05 at 96.75 compared with spot closing of 96.70. The number of contracts traded was 15,207.

Tata Motors December 2012 futures were at a premium of 2.25 point at 276.95 compared with spot closing of 274.70. The number of contracts traded was 15,753.

Tata Steel December 2012 futures were at a premium of 0.55 point at 399.60 compared with spot closing of 399.05. The number of contracts traded was 15,863.

Reliance Industries December 2012 futures were at a premium of 4.05 point at 836.05 compared with spot closing of 832.00. The number of contracts traded was 18,310.

Among Nifty calls, 6,000 SP from the December month expiry was the most active call with contraction of 0.10 million open interest.

Among Nifty puts, 5,500 SP from the  December month expiry was the most active put with  an addition  of 0.18 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (8.10mn) and that for Puts was at 5500 SP (6.76 mn).

The respective Support and Resistance levels are: Resistance 5915.08 -- Pivot Point 5903.22 -- Support 5888.63.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.28 for December -month contract.

The top five scrips with highest PCR on OI were ABB 2.33, PNB 1.13, Asian Paint 1.08, Bharti Airtel 1.02, and Bhusan Steel 1.00.Among most active underlying, Unitech witnessed contraction of 0.62 million of Open Interest in the December month futures contract followed by IFCI which witnessed contraction of 0.40 million of Open Interest in the near month contract. Meanwhile, GMR Infrastructure witnessed an addition of 2.73 million in the December month futures. Also, Jaiprakash Associates witnessed contraction of 1.34 million in Open Interest in the December month contract. Finally, Reliance Communications witnessed contraction of 0.65 million of Open Interest in the near month futures contract.