Nifty ends above crucial 5,900 level

CNX Nifty, after a range-bound trading in the first half, firmed up in late trades to end higher on Tuesday led by gains in all major indices. On global front, Asian markets ended mostly lower with Chinese benchmark losing the most, dragged down by real estate and financials, as investors grew concerned that rising property prices would lead to fresh restrictions on the sector. Meanwhile, European counters traded firmly in the early trade with shares of Danone SA leading the charge north after a job-cut announcement, while investors also awaited the latest take on economic sentiment in Germany.

Bach home, Indian equity benchmark made a flat-to-negative opening below its crucial 5,900 level. In the morning session of trade, market hovered tad below its pre-close level as the market participants remained cautious after the RBI Governor D Subbarao said that there is limited scope for easing of monetary policy over the next few months, as there is a risk of inflation escalation as well as concerns over fiscal and current account deficits. In absence of any major cues, the market’s trade continued to remain range-bound in the mid-noon session too as funds and retail investors booked profit amid weakness in other Asian bourses. Traders were not showing any interest in building up positions and benchmark movements were somewhat listless. However, in the late afternoon session, market turned positive, crossing its crucial 5,900 level and posted gains on account of buying in frontline counters. Traders were seen piling some position in Realty, IT, pharma, PSE and PSU bank stocks. Supportive cues also came from the European markets. Finally, Nifty ended the session with a gain of 41 points.

Meanwhile, all of the sectoral indices on the NSE made a positive closing. CNX Realty up by 2.11%, CNX IT up by 1.49%, CNX PSE up by 1.36% and CNX Pharma up by 1.25% remained the top gainers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 2.95% and reached 15.81.

The India VIX witnessed a contraction of 2.95% at 15.81 as compared to its previous close of at 16.29 on Monday.

The 50-share S&P CNX Nifty gained 41.50 points or 0.70% to settle at 5,939.70.

Nifty February 2013 futures closed at 5,953.40 on Tuesday at a premium of 13.70 points over spot closing of 5,939.70, while Nifty March 2013 futures ended at 5,983.65, at a premium of 43.95 points over spot closing. Nifty February futures saw an addition of 0.42 million (mn) units taking the total outstanding open interest (OI) to 15.84 mn units.

The near month February 2013 derivatives contract will expire on February 28, 2013.

From the most active contracts, JP Associates February 2013 futures were trading at a premium of 0.30 points at 75.50 compared with spot closing of 75.20. The number of contracts traded was 11,376.

Reliance Communications February 2013 futures were trading at a premium of 0.35 points at 73.45 compared with spot closing of 73.10. The number of contracts traded was 9,622.

BHEL February 2013 futures were trading at a discount of 0.40 points at 212.10 compared with spot closing of 212.50. The number of contracts traded was 10,458.

Tata Motors February 2013 futures were at a premium of 1.80 points at 308.05 compared with spot closing of 306.25. The number of contracts traded was 7,820.

Tata Steel February 2013 futures were at a discount of 0.15 points at 388.35 compared with spot closing of 388.50. The number of contracts traded was 7,754.

Among Nifty calls, 6,100 SP from the February month expiry was the most active call with a contraction of 0.25 million open interest.

Among Nifty puts, 5,900 SP from the February month expiry was the most active put with  an addition of 0.46 million open interest.

The maximum OI outstanding for Calls was at 6100 SP (8.29 mn) and that for Puts was at 5,900 SP (7.13 mn).

The respective Support and Resistance levels are: Resistance 5963.78 -- Pivot Point 5923.46 -- Support 5899.38.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.97 for February -month contract.

The top five scrips with highest PCR on OI were WELCORP 1.85, TCS 1.80, Sun Pharma 1.51, Infosys 1.44, and IndusInd Bank 1.41.

Among most active underlying, Unitech witnessed contraction of 10.24 million of Open Interest in the February month futures contract followed by JP Associates which witnessed contraction of 5.41 million of Open Interest in the near month contract. Meanwhile, IFCI witnessed of an addition of 1.40 million in the February month futures. Also, RCOM witnessed an addition of 1.42 million in Open Interest in the February month contract. Finally, Reliance Power witnessed contraction of 0.30 million of Open Interest in the near month futures contract.