Nifty ends above crucial 6,000 level

S&P CNX Nifty ended higher on Monday as the investors cheered the lower than expected inflation figure of December as firm positive economic cue. On global front, Asian pacific shares notched higher on Monday, with Chinese stocks hitting a seven-month high. Moreover, European shares made the positive start as the region's improving economic growth outlook and the declining prospects of further monetary easing bolstered demand.

Back home, Indian benchmark made a positive start amid positive global cues. It continued positive trade as investors maintained their buying spree in software companies amid hopes of robust earnings from Tata Consultancy Services after Infosys’ upbeat third quarter performance last week. Market extended its early gains and crossed its crucial 6,000 level in the mid noon session as the investors sentiments were boosted by the lower than expected December Inflation figures, which revived hopes of rate-cut from Reserve Bank of India (RBI), in its upcoming monetary policy review on January 29. Market added further gain on account of hefty buying activity in realty, IT and PSU bank stocks after Finance Minister P. Chidambaram stated that the government has deferred implementation of controversial rules on tax avoidance to April, 2016, a move which is likely to ease foreign investor sentiments, who are opposed to the controversial rule. Finally, Nifty ended the session with the gain of massive 72 points. 

Meanwhile, most of the sectoral indices on the NSE made a positive closing. CNX Realty up by 5.05%, CNX IT up by 2.56%, CNX PSU Bank up by 1.64%, CNX Service up by 1.62% and CNX PSE up by 1.52% remained the top gainers in the trade. While CNX Auto down 0.53% and CNX Pharma down 0.41% remained the losers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 3.55% and reached 13.70.  

 The India VIX witnessed an addition of 3.55% at 13.70 as compared to its previous close of at 13.23 on Friday.

The 50-share S&P CNX Nifty gained 72.75 points or 1.22% to settle at 6,024.05.

Nifty January 2013 futures closed at 6,057.50 on Monday at a premium of 33.45 points over spot closing of 6,024.05, while Nifty February 2013 futures ended at 6,099.95, at a premium of 75.90 points over spot closing. Nifty January futures saw an addition of 0.23 million (mn) taking the total outstanding open interest (OI) to 15.93 mn units. The near month January 2013 derivatives contract will expire on January 31, 2013.

From the most active contracts, Unitech January 2013 futures were trading at a premium of 0.15 at 40.30 compared with spot closing of 40.15. The number of contracts traded was 13,063.

HDIL January 2013 futures were at a premium of 0.50 at 121.10 compared with spot closing of 120.60. The number of contracts traded was 9,680.

DLF January 2013 futures were flat compared with spot closing of 248.30. The number of contracts traded was 23,302.

Reliance Industries January 2013 futures were at a premium of 3.25 point at 853.25 compared with spot closing of 850.00. The number of contracts traded was 12,228.

ICICI Bank January 2013 futures were at a premium of 9.45 point at 1193.35 compared with spot closing of 1183.90. The number of contracts traded was 12,129.

Among Nifty calls, 6,200 SP from the January month expiry was the most active call with an addition of 0.98 million open interest.

Among Nifty puts, 5,900 SP from the January month expiry was the most active put with an addition of 0.73 million open interest.

The maximum OI outstanding for Calls was at 6200 SP (8.85 mn) and that for Puts was at 5900 SP (8.15 mn).

The respective Support and Resistance levels are: Resistance 6053.25 -- Pivot Point 6007.7 -- Support 5978.5.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.31 for January -month contract.

The top five scrips with highest PCR on OI were Welcorp 8.00, GUJ Fluoro 2.38, Infosys 2.31, Bharti Airtel 1.23 and Tata Motors 1.18.

Among most active underlying, Unitech witnessed an addition of4.35 million of Open Interest in the January month futures contract followed by IFCI which witnessed contraction of 0.39 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed of contraction of 0.81 million in the January month futures. Also, RCOM witnessed an addition of 1.57 million in Open Interest in the January month contract. Finally, R Power witnessed contraction of 0.56 million of Open Interest in the near month futures contract.