Nifty ends marginally higher despite weak January trade data

S&P CNX Nifty ended marginally higher on Wednesday on the back of buying by funds and retail investors in selective stocks amid mixed global cues. On global front, Asian shares outside Japan rose on Wednesday, led by South Korean exporters as the yen firmed amid conflicting interpretations of Group of Seven (G-7) comments about the currency’s recent weakness. Meanwhile, European shares opened slightly lower on Wednesday, near the top of a six-day trading range, with Societe Generale sinking 4 percent after the bank unveiled a bigger-than-expected quarterly loss.

Back home, Indian equity benchmark made a gap-up start amid firm global cues as the US market closed mostly higher with Dow and S&P 500 ending at levels not seen in more than five years, mainly led by the financial sector and as investors digested another round of earnings reports. In the first half of trade, market extended its early gains on account of buying in selective stocks include IT, auto and finance. The traction was also supported by the positive Asian cues. However, in the second half of trade, market pared some early gains but continued its positive trade despite the weak monthly trade data, which showed that January exports increased slightly by 0.8% on year-on-year basis, while imports up by 6.1% on year-on-year basis, leaving a trade deficit at $20 billion against $17.6 billion last year. Investors resorted to profit booking mainly in the late trade ahead of the Wholesale Price Index (WPI) numbers which will decide the RBI’s future course of action. Profit-booking in realty, PSU bank, media and metal stocks led to the downfall. Finally, Nifty ended the session with marginal gains.    

Meanwhile, sectoral indices on the NSE made a mixed closing. CNX IT up by 1.36%, CNX Service up by 0.42%, CNX Auto up by 0.35% and CNX Finance up by 0.31% remained the top gainers in the trade. While, CNX Realty down 2.00%, CNX PSU Bank down 1.67%, CNX Metal down 1.13%, CNX Media down 1.09% and remained the losers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 1.11% and reached 15.14.

The India VIX witnessed contraction of 1.11% at 15.14 as compared to its previous close of at 15.31 on Tuesday.

The 50-share S&P CNX Nifty gained 10.45 points or 0.18% to settle at 5,932.95.

Nifty February 2013 futures closed at 5,936.55 on Wednesday at a premium of 3.60 points over spot closing of 5,932.95, while Nifty March 2013 futures ended at 5,965.60, at a premium of 32.65 points over spot closing. Nifty February futures saw an addition of 0.07 million (mn) units taking the total outstanding open interest (OI) to 13.41 mn units. The near month February 2013 derivatives contract will expire on February 28, 2013.

From the most active contracts, Unitech February 2013 futures were trading at a premium of 0.25 points at 28.90 compared with spot closing of 28.65. The number of contracts traded was 16,094.

JP Associates February 2013 futures were trading flat compared with spot closing of 70.95. The number of contracts traded was 16,858.

Tata Motors February 2013 futures were at a premium of 0.10 points at 305.10 compared with spot closing of 305.00. The number of contracts traded was 16,689.

Tata Steel February 2013 futures were at a premium of 1.90 points at 377.20 compared with spot closing of 375.30. The number of contracts traded was 10,931.

DLF February 2013 futures were at a discount of 1.10 points at 259.20 compared with spot closing of 260.30. The number of contracts traded was 14,879.

Among Nifty calls, 6,100 SP from the February month expiry was the most active call with an addition of 0.24 million open interest.

Among Nifty puts, 5,900 SP from the February month expiry was the most active put with an addition of 0.71 million open interest.

The maximum OI outstanding for Calls was at 6100 SP (7.64 mn) and that for Puts was at 5,900 SP (7.94 mn).

The respective Support and Resistance levels are: Resistance 5960.65 -- Pivot Point 5941.8 -- Support 5914.1.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.06 for February -month contract.

The top five scrips with highest PCR on OI were Dr Reddy 2.27, Welcorp 1.90, TCS 1.82, Indusind BK 1.35 and Infosys 1.26.

Among most active underlying, NHPC witnessed contraction of 1.31 million of Open Interest in the February month futures contract followed by Jaiprakash Associates which witnessed contraction of 3.70 million of Open Interest in the near month contract. Meanwhile, IFCI witnessed of contraction of 0.90 million in the February month futures. Also, RCom witnessed contraction of 2.36 million in Open Interest in the February month contract. Finally, NTPC witnessed contractionof 1.40 million of Open Interest in the near month futures contract.