Nifty ends above crucial 5,750 mark amid firm global cues

CNX Nifty ended higher on Tuesday amid gains in rate sensitive stocks on growing hopes that the RBI will cut interest rates later this month. On the global front, most of the Asian equity indices ended the session in the green terrain on reports that the US Federal Reserve will continue with its bond-buying plan to support growth in US. Meanwhile, gains in financial stocks helped lifting key European indices to a fresh two-year high on Tuesday as monetary policy support from central banks continued to underpin investors’ sentiment.

Back home, buoyed by firm global cues, Indian equity benchmark made a gap-up start with re-capturing its crucial 5,700 level. Global risk appetite improved amid speculation that the Federal Reserve will continue stimulus measures to boost the world’s biggest economy. In the first half, market traded in positive territory as the sentiments got some boost with Moody’s Investors Service giving thumbs up to Budget 2013, terming it credit positive for the sovereign rating of the country. Also, Finance Minister P Chidambaram’s statement that fiscal deficit in the current financial year is likely to be less than the provisional figure of 5.2 percent announced in the national budget last week, supported the positive sentiment. Market extended its gain in the second half of trade and recaptured its psychological 5,750 level on account of buying in front line counters and taking cues from European counterparts. The optimism on the street continued despite HSBC survey showed that the country’s services sector witnessed continued, albeit slower pace of expansion in February amid a decline in new business orders. In the late afternoon session, market continued its positive trade and reached its intra-day high level. Traders piled up position in realty, PSU bank, metal and infra stocks. Finally, Nifty ended the session with a gain of 85 points. 

Meanwhile, all of the sectoral indices on the NSE made a positive closing. CNX Realty up by 3.20%, CNX Metal up by 2.41%, CNX Infra up by 1.71% and CNX PSU Bank up by 1.61% remained the top gainers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 2.05% and reached 13.39.

The India VIX witnessed contraction of 2.05% at 13.39 as compared to its previous close of at 13.67 on Monday.

The 50-share CNX Nifty gained 85.75 points or 1.50% to settle at 5,784.25.

Nifty March 2013 futures closed at 5,802.80 on Tuesday at a premium of 18.55 points over spot closing of 5,784.25, while Nifty April 2013 futures ended at 5,830.90, at a premium of 46.65 points over spot closing. Nifty March futures saw contraction of 0.10 million (mn) units taking the total outstanding open interest (OI) to 16.42 mn units. The near month March 2013 derivatives contract will expire on March 28, 2013.

From the most active contracts, NHPC March 2013 futures were trading at a discount of 0.15 points at 20.15 compared with spot closing of 20.30. The number of contracts traded was 12,397.

JP Associates March 2013 futures were trading at a premium of 0.20 points at 70.80 compared with spot closing of 70.60. The number of contracts traded was 9,646.

Tata Motors March 2013 futures were trading at a premium of 0.55 points at 302.15 compared with spot closing of 301.60. The number of contracts traded was 16,598.

Tata Steel March 2013 futures were at a premium of 2.25 points at 346.50 compared with spot closing of 344.25. The number of contracts traded was 9,533.

DLF March 2013 futures were at a premium of 1.30 points at 261.30 compared with spot closing of 260.00. The number of contracts traded was 14,704

Among Nifty calls, 6,000 SP from the March month expiry was the most active call with an addition of 0.30 million open interest.

Among Nifty puts, 5,700 SP from the March month expiry was the most active put with an addition of 1.20 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (6.53 mn) and that for Puts was at 5,700 SP (8.33mn).

The respective Support and Resistance levels are: Resistance 5808.77-- Pivot Point 5765.58 -- Support 5741.07.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.07 for March -month contract.

The top five scrips with highest PCR on OI were Colpal 4.00,  Kotak Bank 3.36, TCS 1.86, JSW Energy 1.55,  and Ambuja Cement  1.44.

Among most active underlying, NHPC witnessed contraction of 38.62 million of Open Interest in the March month futures contract followed by IDFC which witnessed an addition of 0.13 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed of contraction of 1.51 million in the March month futures. Also, Unitech witnessed an addition of 2.13 million in Open Interest in the March month contract. Finally, RCOM witnessed contraction of 1.01 million of Open Interest in the near month futures contract.