Nifty concludes near two year’s high level on US fiscal-cliff deal

S&P CNX Nifty ended higher on Wednesday tracing positive global cues after the United States (US) averted economic calamity when lawmakers approved a deal to prevent huge tax hikes and spending cuts that would have pushed the world’s largest economy off a fiscal cliff and into recession.

Back home, Indian market extending previous session’s gain made a gap-up start. The index managed to maintain the strong momentum on the account of buying in Media, PSE and Finance stocks. Sentiments also got some support after jewellery stocks edged higher as the government slashed the import tariff value of gold and silver to $ 539 per 10 gm and $979 per kg, respectively.

Additionally, good macro-economic data also added to the rally with seasonally adjusted HSBC Purchasing Managers’ Index signaling further improvement in the health of the Indian manufacturing sector, posting good advancement in December, by surging to its six-month high to 54.7 from 53.7 in November.

However, after trading strong till early noon deals, benchmarks started paring gains, as investors started booking profit at higher levels. Nevertheless, the bout of selling pressure, which was witnessed in the last leg of trade, dragged the barometer index near day’s low level, which led to Nifty ending the session with gains of little over half a percent, sub 6000 level,  it’s highest since January 7, 2011.

Meanwhile, most of the sectoral indices on the NSE made a positive closing. CNX Media up by 2.11%, CNX PSE up by 1.40%, CNX Finance up by 1.21%, CNX Energy up by 1.14% and Bank Nifty up by 1.05% remained the top gainers in the trade.While CNX FMCG down 0.22%, CNX Realty down 0.19% and CNX IT down 0.04% remained the losers.

The India VIX witnessed an addition of 0.15% at 13.71 as compared to its previous close of at 13.69 on Tuesday.

The 50-share S&P CNX Nifty gained 42.40 points or 0.71% to settle at 5,993.25.

Nifty January 2013 futures closed at 6035.65 on Wednesday at a premium of 42.40 points over spot closing of 5,993.25, while Nifty February 2013 futures ended at 6075.40, at a premium of 82.15 points over spot closing. Nifty January futures saw an addition of 0.13 million (mn) units taking the total outstanding open interest (OI) to 17.14 mn units. The near month January 2013 derivatives contract will expire on January 31, 2013.

From the most active contracts, JP Associates January 2013 futures were trading at a premium of 0.60 at 102.45 compared with spot closing of 101.85. The number of contracts traded was 11,132.

Tata Motors January 2013 futures were at a premium of 1.70 at 319.20 compared with spot closing of 317.50. The number of contracts traded was 9,640. Tata Global Beverages January 2013 futures were at a premium of 1.30 point at 168.35 compared with spot closing of 167.05. The number of contracts traded was 9,748.

DLF January 2013 futures were at a premium of 1.20 point at 236.20 compared with spot closing of 235.00. The number of contracts traded was 9,675.

Reliance Industries January 2013 futures were at a premium of 11.15 point at 855.15 compared with spot closing of 844.00. The number of contracts traded was 21,400Among Nifty calls, 6,200 SP from the January month expiry was the most active call with an addition of 1.69 million open interest.

Among Nifty puts, 5,800 SP from the January month expiry was the most active put with an addition of 0.48 million open interest.

The maximum OI outstanding for Calls was at 6200 SP (7.43 mn) and that for Puts was at 5800 SP (5.97mn).

The respective Support and Resistance levels are: Resistance 6005.53 -- Pivot Point 5993.77 -- Support 5981.48.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.19 for January -month contract.

The top five scrips with highest PCR on OI were GUJ Fluoro 3.53, Grasim Industries 1.24, Bajaj-Auto 1.15, ICICI Bank 1.14 and Maruti 1.14.

Among most active underlying, Unitech witnessed contraction of 3.08 million of Open Interest in the January month futures contract followed by JP Associates which witnessed an addition of 2.33 million of Open Interest in the near month contract. Meanwhile, Reliance Communications witnessed contraction of 0.60 million in the January month futures. Also, Reliance Power witnessed an addition of 1.56 million in Open Interest in the January month contract. Finally, Hindalco Industries witnessed an addition of 0.91 million of Open Interest in the near month futures contract.