Nifty ends above crucial 6,050 mark

S&P CNX Nifty ended higher on Friday as the risk appetite surged after the government allowed the oil companies to raise diesel prices by a ‘small quantum’ periodically followed by upbeat economic reports from US and China, the world’s two largest economies fuelling hopes of growth recovery in Asia's third-biggest economy. On global front, most of the Asian markets ended in green as better than expected China's fourth quarter growth data mainly lifted Asian pacific shares higher. Meanwhile, European shares edged higher on Friday, also supported by stronger-than-expected Chinese data.

Back home, Indian equity markets made a positive start buoyed by firm global cues with inching towards psychological 6,100 mark. In the first half of the trade, market continued its positive trade on sustained buying in energy and PSE stocks with the government virtually deregulating diesel prices. Sentiments turned bullish after oil marketing companies (OMCs) hiked diesel price by 45 paise excluding taxes effective January 18, 2013. Market continued its firm trade in second half too on account of buying in frontline counters and taking cues from positive European counterparts. Finally, Nifty ended the session with a gain of 25 points.  

Meanwhile, most of the sectoral indices on the NSE made a mixed closing. CNX PSE up by 3.87%, CNX Energy up by 2.99%, CNX Realty up by 1.21%, CNX PSU Bank up by 0.90% and CNX Finance up by 0.66% remained the top gainers in the trade. While CNX Media down 1.19%, CNX IT down 1.03%, CNX Pharma down 0.69%, CNX Auto down 0.59% and CNX metal down 0.44% remained the losers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 0.86% and reached 13.89.

The India VIX witnessed contraction of 0.86% at 13.89 as compared to its previous close of at 14.01 on Thursday.

The 50-share S&P CNX Nifty gained 25.20 points or 0.42% to settle at 6,064.40.

Nifty January 2013 futures closed at 6,074.85 on Friday at a premium of 10.45 points over spot closing of 6,064.40, while Nifty February 2013 futures ended at 6,111.90, at a premium of 47.50 points over spot closing. Nifty January futures saw an addition of 0.01 million (mn) taking the total outstanding open interest (OI) to 14.56 mn units. The near month January 2013 derivatives contract will expire on January 31, 2013.

From the most active contracts, ITC January 2013 futures were trading at a premium of 0.25 at 287.75 compared with spot closing of 287.50. The number of contracts traded was 16,604.

DLF January 2013 futures were at a premium of 1.80 at 262.80 compared with spot closing of 261.00. The number of contracts traded was 18,586.

ONGC January 2013 futures were at a premium of 1.60 at 339.05 compared with spot closing of 337.45. The number of contracts traded was 24,034.

HDFC Bank January 2013 futures were at a premium of 5.40 point at 664.40 compared with spot closing of 659.00. The number of contracts traded was 12,899.

Reliance Industries January 2013 futures were at a premium of 2.90 point at 900.90 compared with spot closing of 898.00. The number of contracts traded was 35,832.

Among Nifty calls, 6,200 SP from the January month expiry was the most active call with an addition of 0.05 million open interest.

Among Nifty puts, 5,900 SP from the January month expiry was the most active put with an addition of 0.03 million open interest.

The maximum OI outstanding for Calls was at 6200 SP (8.32 mn) and that for Puts was at 5900 SP (8.36 mn).

The respective Support and Resistance levels are: Resistance 6082.43 -- Pivot Point 6065.37 -- Support 6047.33.

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 Welcorp 2.50, GUJ Fluoro 2.33, SRTransfin 2.20, Infosys 2.15, and JP Power 1.52.

Among most active underlying, Unitech witnessed contraction of 0.44 million of Open Interest in the January month futures contract followed by JP Associaties which witnessed an addition of 0.86 million of Open Interest in the near month contract. Meanwhile, IFCI witnessed of contraction of 0.66 million in the January month futures. Also, RCOM witnessed an addition of 1.14 million in Open Interest in the January month contract. Finally, R Power witnessed contraction of 0.85 million of Open Interest in the near month futures contract.