Nifty ends higher amid firm domestic cues

S&P CNX Nifty ended higher on Thursday led by gains in state-run oil marketing companies after the government allowed them to increase diesel prices by a ‘small quantum’ periodically. On global front, Asian markets mostly ended lower, a day before China’s fourth quarter growth data. Moreover, European shares were trading mixed on account of concerns over the outlook for growth and corporate earnings.

Back home, Indian equity benchmark made a flat start. However, the upside remained capped in the early deals due to sluggish global cues. Worries about the global economic outlook revived since the World Bank cut its 2013 forecast for global growth to 2.4 percent from its previous estimate of 3 percent, citing the prospect of poor performance across the developed world. In the first half of the trade, market extended its early gains and continued positive trade with investors piling up positions in frontline stocks. Market continued its firm trade in second half too and reached intra-day high on account of buying in energy stocks as sentiments got a boost after the government raised the cap on subsidized cooking gas cylinders (LPG) from six a year to nine and allowed the oil companies to increase the diesel prices. Finally, Nifty ended the session with a gain of 37 points.

Meanwhile, most of the sectoral indices on the NSE made a mixed closing. CNX Energy up by 2.60%, CNX Realty up by 2.05%, CNX PSE up by 1.63%, CNX media up by 1.53% and CNX IT up by 1.35% remained the top gainers in the trade. While CNX Pharma down 0.27%, CNX Finance down 0.23%, CNX MNC down 0.12% and CNX FMCG down 0.06% remained the losers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 0.14% and reached 14.01. 

The India VIX witnessed an addition of 0.14% at 14.01 as compared to its previous close of at 13.99 on Wednesday.

The 50-share S&P CNX Nifty gained 37.35 points or 0.62% to settle at 6,039.20.

Nifty January 2013 futures closed at 6,054.45 on Thursday at a premium of 15.25 points over spot closing of 6,039.20, while Nifty February 2013 futures ended at 6,093.75, at a premium of 54.55 points over spot closing. Nifty January futures saw an addition of 0.01 million (mn) taking the total outstanding open interest (OI) to 14.54 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 0.15 at 83.35 compared with spot closing of 83.20. The number of contracts traded was 14,818.

Tata Motors January 2013 futures were at a premium of 0.55 at 329.40 compared with spot closing of 328.85. The number of contracts traded was 13,603.

DLF January 2013 futures were at a premium of 0.30 at 257.30 compared with spot closing of 257.00. The number of contracts traded was 18,978.

Reliance Industries January 2013 futures were at a premium of 2.60 point at 890.60 compared with spot closing of 888.00. The number of contracts traded was 35,740.

ONGC January 2013 futures were at a premium of 1.70 point at 315.25 compared with spot closing of 313.55. The number of contracts traded was 17,442. 

Among Nifty calls, 6,200 SP from the January month expiry was the most active call with contraction of 0.34 million open interest.

Among Nifty puts, 5,900 SP from the January month expiry was the most active put with an addition of 0.52 million open interest.

The maximum OI outstanding for Calls was at 6200 SP (8.26 mn) and that for Puts was at 5900 SP (8.32 mn).

The respective Support and Resistance levels are: Resistance 6065.57 -- Pivot Point 6026.83 -- Support 6000.47.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.41 for January-month contract.

The top five scrips with highest PCR on OI were SRTransfin 2.75, Welcorp 2.50, GUJ Fluoro 2.30, Infosys 2.16, and HUL 1.40.

Among most active underlying, Unitech witnessed an addition of 1.30 million of Open Interest in the January month futures contract followed by IFCI which witnessed an addition of 0.22 million of Open Interest in the near month contract. Meanwhile, JP Associaties witnessed of an addition of 1.39 million in the January month futures. Also, RCOM witnessed contraction of 0.82 million in Open Interest in the January month contract. Finally, R Power witnessed contraction of 1.16 million of Open Interest in the near month futures contract.