Nifty ends higher on reforms push, positive global clues

CNX S&P Nifty ended higher on Wednesday amid firm global cues and improved market sentiments after the Lok Sabha on Monday passed the banking bill paving way for foreign investments in the sector and establishment of new private banks. On global front, most of the Asian equity indices shut shop in the green terrain as optimism grew that a deal would be made to avert the fiscal cliff amid hopes of economic stimulus from the Bank of Japan this week. Meanwhile, European counters made a firm opening and are trading positively with banks posting the biggest advances, as optimism that US policy makers were close to reaching a budget deal lured investors into riskier assets.  

Back home, Indian market had made a gap-up opening buoyed by supportive global cues and recaptured its crucial 5,900 level. Market ruled firm in the late morning trade as investors sentiments improved with the Lok Sabha's approval to the government's proposal to strengthen the central bank's regulatory powers and hoped of more reforms announcements from the centre. In afternoon session, market traded in a tight-band with gain of about half a percent supported by the consistent buying demand among rate-sensitive sectors like Auto and Metal stocks on hopes of policy easing by the Reserve Bank of India in January monetary policy after positive undertone in Tuesday’s review. Some support also came in from software and technology pack which edged higher by over a percentage point on hopes of resolution to the US cliff standoff would improve the outlook for a key export market. Finally, Nifty ended the session with a gain of half a percent.

Meanwhile, most of the sectoral indices on the NSE settled on a positive note, CNX Metal and CNX Pharma each up by 1.66%, CNX Auto up by 1.63%, CNX PSE up by 1.29%, CNX Commodities up by 1.25% remained the top gainers in the trade. While CNX FMCG down 0.45%, CNX Media down 0.32%, CNX Finance down 0.15% and CNX Infra down by 0.12% remained the loser. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 0.20% and reached 14.47.

The India VIX witnessed an addition of 0.21% at 14.47 as compared to its previous close of at 14.44 on Tuesday.

The 50-share S&P CNX Nifty gained 32.80 points or 0.56% to settle at 5,929.60.

Nifty December 2012 futures closed at 5946.90 on Wednesday at a premium of 17.30 points over spot closing of 5,929.60, while Nifty January 2013 futures ended at 5986.40, at a premium of 56.80 points over spot closing. Nifty December futures saw contraction of 0.26 million (mn) units taking the total outstanding open interest (OI) to 21.40 mn units. The near month December 2012 derivatives contract will expire on December 27, 2012.

From the most active contracts, Reliance Power December 2012 futures were at a premium of 0.05 at 97.85 compared with spot closing of 97.80. The number of contracts traded was 34,873.

DLF December 2012 futures were at a premium of 2.40 at 226.90 compared with spot closing of 224.50. The number of contracts traded was 25,475.

Tata Motors December 2012 futures were at a premium of 0.15 point at 307.95 compared with spot closing of 307.80. The number of contracts traded was 17,785.

Tata Steel December 2012 futures were at a premium of 0.80 point at 424.15 compared with spot closing of 423.35. The number of contracts traded was 27,276.

ICICI Bank December 2012 futures were at a premium of 5.20 point at 1143.20 compared with spot closing of 1138.00. The number of contracts traded was 12,466. 

Among Nifty calls, 6,000 SP from the December month expiry was the most active call with contraction of 0.35 million open interest.

Among Nifty puts, 5,800 SP from the  December month expiry was the most active put with  contraction  of 0.38 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (11.32 mn) and that for Puts was at 5800 SP (9.50 mn).

The respective Support and Resistance levels are: Resistance 5942.4 -- Pivot Point 5926.6 -- Support 5913.8.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.29 for December -month contract.

The top five scrips with highest PCR on OI were Bajaj-Auto 1.88, Bank Baroda 1.55, PNB 1.55, Tata Motors 1.43 and ACC 1.30.

Among most active underlying, Unitech witnessed  contraction  of 4.63 million of Open Interest in the December month futures contract followed by Jaiprakash Associates which witnessed  contraction  of 0.54 million of Open Interest in the near month contract. Meanwhile, IFCI witnessed contraction of 7.34 million in the December month futures. Also, RCOM witnessed contraction of 0.18 million in Open Interest in the December month contract. Finally, R Power witnessed an addition of 1.23 million of Open Interest in the near month futures contract.