Nifty ends near 6,050 level with marginal gain

S&P CNX Nifty ended marginally higher on Wednesday amid global growth recovery hopes; however, traders remained cautious awaiting the outcome of US Federal Reserve's monetary policy decision due later in the day. On global front, Asian shares, taking comfort from improving global economic prospects, inched up on Wednesday, despite cautiously awaiting local corporate earnings reports and the US Federal Reserve's monetary policy decision. However, European shares were wavering ahead of FOMC decision.

Back home, Indian equity benchmark, after witnessing a cut of around half a percent, made a positive start tracking firm cues from global indices. Overnight, the US markets made a good recovery in the last session supported by some good earnings numbers that led Dow near 14k mark and keeping the S&P above 1,500 level. Market continued its positive trade in morning session as investors’ sentiments got some support on expectations of an improvement in the liquidity in the market after the RBI reduced Cash Reserve Ratio (CRR) by 0.25 per cent and covering-up of short positions ahead of Thursday’s monthly expiry in the derivatives segment. In the noon session, market pared its early gains and exhibited volatile trade hovering around pre-close line on account of selling in the frontline counters ahead of the expiry of near month derivatives contracts on Jan 31. However, in the late afternoon session, market again turned positive, taking supportive cues from European counterpart. Further, buying in realty, metal and energy stocks also led to the market’s gain. Finally, Nifty ended the session with a marginal gain.      

Meanwhile, most of the sectoral indices on the NSE made a mixed closing. CNX Realty up by 1.29%, CNX Energy up by 0.73%, CNX Metal up by 0.25% and CNX Pharma up by 0.24% remained the top gainers in the trade. While CNX PSU Bank down 1.51%, CNX Infra down 1.08%, CNX Auto down 0.48%, CNX Media down 0.35% and CNX Service down 0.17% remained the losers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 0.62% and reached 14.38.  

The India VIX witnessed contraction of 0.62% at 14.38 as compared to its previous close of at 14.47 on Tuesday.

The 50-share S&P CNX Nifty gained 5.85 points or 0.10% to settle at 6,055.75.

Nifty January 2013 futures closed at 6,060.30 on Wednesday at a premium of 4.55 points over spot closing of 6,055.75, while Nifty February 2013 futures ended at 6094.90, at a premium of 39.15 points over spot closing. Nifty January futures saw contraction of 0.65 million (mn) units taking the total outstanding open interest (OI) to 8.85 mn units. The near month January 2013 derivatives contract will expire on January 31, 2013.

From the most active contracts, Tata Motors January 2013 futures were trading at a premium of 0.45 points at 299.00 compared with spot closing of 298.55. The number of contracts traded was 12,769.

Reliance Industries February 2013 futures were at a premium of 6.45 points at 906.20 compared with spot closing of 899.75. The number of contracts traded was 17,787.

DLF January 2013 futures were at a premium of 0.60 points at 272.00 compared with spot closing of 271.40. The number of contracts traded was 20,920.

ICICI Bank February 2013 futures were at a premium of 17.60 points at 1223.70 compared with spot closing of 1206.10. The number of contracts traded was 14,725.

Crompton Greaves January 2013 futures were at a discount of 0.10 point at 107.00 compared with spot closing of 107.10. The number of contracts traded was 17,255.

Among Nifty calls, 6,200 SP from the January month expiry was the most active call with contraction of 0.66 million open interest.

Among Nifty puts, 6,000 SP from the January month expiry was the most active put with marginal an additional in open interest.

The maximum OI outstanding for Calls was at 6200 SP (12.15 mn) and that for Puts was at 6,000 SP (8.31mn).

The respective Support and Resistance levels are: Resistance 6070.42 -- Pivot Point 6057.28 -- Support 6042.62.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.29 for January-month contract.

The top five scrips with highest PCR on OI were SR Transfin 2.88, Infosys 2.09, Axis Bank 2.03,  Mcleodruss 2.00 and  Maruti 1.73.

Among most active underlying, NHPC witnessed contraction of 25.51 million of Open Interest in the January month futures contract followed by Unitech which witnessed contraction of 21.58 million of Open Interest in the near month contract. Meanwhile, JP Associates witnessed of contraction of 13.89 million in the January month futures. Also, R com witnessed contraction of 12.19 million in Open Interest in the January month contract. Finally, R power witnessed contraction of 8.36 million of Open Interest in the near month futures contract.