Nifty ends higher on economic growth hopes

CNX Nifty ended higher on Wednesday. Markets tracked global cues and reacted positively to the Economic Survey, tabled in Parliament by Finance Minister P Chidambaram ahead of the Union Budget on Thursday. As per the economic survey, FY13 fiscal deficit is likely to be contained at 5.3 per cent of GDP despite a significant shortfall in revenue. Containing deficit is important because of the looming threat of a potential downgrade to India's sovereign rating to junk status. On global front, Asian Markets ended higher after US Federal Reserve head Ben Bernanke reaffirmed the central bank's huge monetary easing scheme, but a stronger yen sent Tokyo lower. While, European markets traded near their previous close mark with positive bias in the early trade.

Back home, India equity benchmark made a gap-up start on the back of firmed overseas cues remained in fine fettle in the first half after the Congress-led UPA government raised the growth projection for fiscal year 2013-14 and simultaneously lowered the Inflation target for Asia’s third-biggest economy. Market extended gains in the second half of the trade, on account of buying in frontline counters and taking cues from European counterparts. Investors piled up position in reality, media and infra stocks. Finally, Nifty ended the session with the gain of 35 points.  Meanwhile, sectoral indices on the NSE made a mixed closing. CNX Realty up by 2.42%, CNX Infra up by 2.06%, CNX Media up by 1.69%, CNX PSE up by 1.29% and CNX PSU Bank up by 1.25% remained the top gainers in the trade. While, CNX IT down 1.18%, CNX Pharma down 0.34% and CNX MNC down 0.08%. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 6.51% and reached 16.23.

The India VIX witnessed contraction of 6.51 % at 16.23 as compared to its previous close of at 17.36 on Tuesday.

The 50-share S&P CNX Nifty gained 35.55 points or 0.62% to settle at 5,796.90.

Nifty February 2013 futures closed at 5797.9 on Wednesday at a premium of 1.00 points over spot closing of 5,796.90, while Nifty March 2013 futures ended at 5825.8, at a premium of 28.90 points over spot closing. Nifty February futures saw contraction of 0.63 million (mn) units taking the total outstanding open interest (OI) to 14.44 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 discount of 0.15 points at 72.25 compared with spot closing of 72.40. The number of contracts traded was 16,360.

Tata Motors February 2013 futures were trading at a discount of 0.40 points at 286.6 compared with spot closing of 287.00. The number of contracts traded was 12,923.

Tata Steel February 2013 futures were trading at a premium of 0.50 points at 357.3 compared with spot closing of 356.80. The number of contracts traded was 13,827.

BHEL February 2013 futures were at flat at 207.05 compared with spot closing of 207.05. The number of contracts traded was 12,637.

DLF February 2013 futures were at a discount of 0.50 points at 277.4 compared with spot closing of 277.90. The number of contracts traded was 19,091.Among Nifty calls, 6,000 SP from the February month expiry was the most active call with an addition of 0.41 million open interest.

Among Nifty puts, 5,800 SP from the February month expiry was the most active put with contraction of 0.40 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (9.55 mn) and that for Puts was at 5,800 SP (5.95 mn).

The respective Support and Resistance levels are: Resistance 5826.83-- Pivot Point 5788.27 -- Support 5758.33.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.66 for February -month contract.

The top five scrips with highest PCR on OI were TCS 2.04, Infosys 1.70, Sun Pharma 1.56, India Cement 1.52 and IndusInd Bank 1.39.

Among most active underlying, NHPC witnessed contraction of 70.35 million of Open Interest in the February month futures contract followed by Unitech which witnessed contraction of 13.22 million of Open Interest in the near month contract. Meanwhile, Suzlon Energy witnessed of an addition of 7.25 million in the February month futures. Also, Jaiprakash Associates witnessed contraction of 15.09 million in Open Interest in the February month contract. Finally, IFCI witnessed contraction of 22.44 million of Open Interest in the near month futures contract.