Nifty ends above crucial 5,800 level amid firm global cues

CNX Nifty ended higher for second consecutive day on Wednesday amid strong global cues. Further, encouraging GDP growth forecast for the next two years by global rating agency Standard & Poor’s, also supported the positive sentiment. On global front, Asian markets shut shop on higher note with China’s Shanghai Composite Index gaining over half a percent after outgoing Chinese Premier Wen Jiabao promised increased fiscal spending. Moreover, European markets also made a positive start in early deals.

Bach home, prolonging its previous session’s jubilation, Indian equity benchmark made a gap-up start with re-capturing its crucial 5,800 level buoyed by firm global cues. Global investors’ sentiment improved after US service-industry growth gained momentum, while China maintained its economic-growth target at 7.5 per cent for 2013. In the first half, market traded in positive territory as the sentiments got some boost with Chief economic adviser to the government Raghuram Rajan’s statement that there are signs of economic recovery as inflation is on the decline and exports are looking up. Market continued its positive trade in the second half too mainly on the back of buying in buying in front line counters and taking cues from European counterparts. Investors were seen piling up position in realty, PSU bank, metal and infra stocks amid optimism that the Reserve Bank of India (RBI) may cut interest rates in March policy to boost growth. Further, weakening rupee also boosted IT stocks, since software majors, which generate most of their revenue from exports gained on the back of a failing rupee. Finally, Nifty ended the session with a gain of over half a percent. 

Meanwhile, most of the sectoral indices on the NSE closed in green. CNX Realty up by 4.75%, CNX PSU Bank up by 1.80%, CNX Metal up by 1.57%, CNX IT up by 1.47% and CNX Infra up by 1.22% remained the top gainers in the trade. While, CNX FMCG down 1.27% and CNX Media down 0.15%. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 0.07% and reached 13.40.

The India VIX witnessed an addition of 0.07% at 13.40 as compared to its previous close of at 13.39 on Tuesday.

The 50-share CNX Nifty gained 34.35 points or 0.59% to settle at 5,818.60.

Nifty March 2013 futures closed at 5,841.35 on Wednesday at a premium of 22.75 points over spot closing of 5,818.60, while Nifty April 2013 futures ended at 5,869.25, at a premium of 50.65 points over spot closing. Nifty March futures saw an addition of 0.32 million (mn) units taking the total outstanding open interest (OI) to 16.75 mn units. The near month March 2013 derivatives contract will expire on March 28, 2013.

From the most active contracts, JP Associates March 2013 futures were trading at a premium of 0.05 points at 74.60 compared with spot closing of 74.55. The number of contracts traded was 13,641.

HDIL March 2013 futures were trading at a premium of 0.50 points at 68.25 compared with spot closing of 67.75. The number of contracts traded was 12,004.

Tata Motors March 2013 futures were trading at a premium of 1.75 points at 310.95 compared with spot closing of 309.20. The number of contracts traded was 14,766.

Tata Steel March 2013 futures were at a premium of 1.30 points at 354.60 compared with spot closing of 353.30. The number of contracts traded was 11,238.

DLF March 2013 futures were at a premium of 0.85 points at 270.95 compared with spot closing of 270.10. The number of contracts traded was 19,087.

Among Nifty calls, 6,000 SP from the March month expiry was the most active call with contraction of 0.15 million open interest.

Among Nifty puts, 5,700 SP from the March month expiry was the most active put with an addition of 1.09 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (6.38 mn) and that for Puts was at 5,700 SP (9.42mn).

The respective Support and Resistance levels are: Resistance 5833.18-- Pivot Point 5814.12-- Support 5799.53.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.16 for March -month contract.

The top five scrips with highest PCR on OI were Colpal 4.00, Kotak Bank 3.13, TCS 2.18, Tata Motors 1.61, and Ambuja Cement 1.43.

Among most active underlying, NHPC witnessed contraction of 16.03 million of Open Interest in the March month futures contract followed by Unitech which witnessed an addition of 5.25 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed of an addition of 0.94 million in the March month futures. Also, Rcom witnessed an addition of 1.15 million in Open Interest in the March month contract. Finally, R Power witnessed contraction of 0.48 million of Open Interest in the near month futures contract.