Nifty ends above crucial 6,000 level

S&P CNX Nifty ended above its key 6,000 level for the first time in 2-year on hopes of global growth recovery coupled with optimism that the Reserve Bank of India (RBI) may cut lending rates in January monetary policy review. On global front, Asian stocks ended on a positive note, pushing equities index to its highest level in 17 months. However, European stock markets inched lower in thin trade on Thursday.

Back home, domestic market extending previous session’s gain and made a positive gap-up opening with bout of volatility. Market traded firm in first session as sentiments got some support from statement of PM’s Economic Advisor Council chairman C Rangarajan, who said that the current account deficit in 2012-13 is likely to be in the region of the last financial year's level of 4.2% of the GDP. Market continued firm trade on back of strong buying in realty, energy and IT stocks and crossed the crucial 6,000 level. In the last leg of trade, market extended early gains and reached intra-day high with traction supported by strong global cues, after an expansion of US manufacturing and China’s services industries fueled optimism in the global economic recovery. Finally, Nifty ended the session near its intra-day high with the gain of 16 points.

Meanwhile, most of the sectoral indices on the NSE made a positive closing. CNX Realty up by 1.32%, CNX IT up by 1.10%, CNX Energy up by 1.09%, CNX Media up by 0.73% and CNX MNC up by 0.55% remained the top gainers in the trade. While CNX FMCG down 0.35% and CNX Auto down 0.19% remained the losers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 1.75% and reached 13.47.

The India VIX witnessed contraction of 0.24% at 13.47 as compared to its previous close of at 13.71 on Wednesday.

The 50-share S&P CNX Nifty gained 16.25 points or 0.27% to settle at 6,009.50.

Nifty January 2013 futures closed at 6039.55 on Thursday at a premium of 30.05 points over spot closing of 6,009.50, while Nifty February 2013 futures ended at 6078.15, at a premium of 68.65 points over spot closing. Nifty January futures saw marginal contraction of 3,200 units taking the total outstanding open interest (OI) to 17.13 mn units. The near month January 2013 derivatives contract will expire on January 31, 2013.

From the most active contracts, Reliance Communications January 2013 futures were trading at a premium of 0.55 at 79.55 compared with spot closing of 79.00. The number of contracts traded was 15,174.

NMDC January 2013 futures were at a premium of 1.75 at 163.95 compared with spot closing of 162.20. The number of contracts traded was 7,000.

Tata Motors January 2013 futures were at a premium of 1.85 point at 319.85 compared with spot closing of 318.00. The number of contracts traded was 8,662.

DLF January 2013 futures were at a premium of 2.45 point at 239.95 compared with spot closing of 237.50. The number of contracts traded was 13,191.

Reliance Industries January 2013 futures were at a premium of 5.85 point at 865.95 compared with spot closing of 860.10. The number of contracts traded was 20,391.

Among Nifty calls, 6,200 SP from the January month expiry was the most active call with an addition of 0.63 million open interest.

Among Nifty puts, 5,800 SP from the January month expiry was the most active put with  contraction of 0.12 million open interest.

The maximum OI outstanding for Calls was at 6200 SP (8.06 mn) and that for Puts was at 5800 SP (5.85mn).

The respective Support and Resistance levels are: Resistance 6022.15 -- Pivot Point 6004.35 -- Support 5991.7.

The Nifty Put Call Ratio (PCR) OI wise stood at 2.07 for January -month contract.

The top five scrips with highest PCR on OI were GUJ Fluoro 3.38, Bajaj-Auto 1.26, Axis Bank 1.23, Maruti 1.12 and Tata Motors 1.09.

Among most active underlying, Unitech witnessed an addition of 2.18 million of Open Interest in the January month futures contract followed by Reliance Communications which witnessed an addition of 2.40 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed contraction of 0.90 million in the January month futures. Also, Reliance Power witnessed an addition of 0.69 million in Open Interest in the January month contract. Finally, NMDC witnessed an addition of 3.76 million of Open Interest in the near month futures contract.