Nifty ends above key 5,850 mark amid firm global cues

CNX Nifty ended higher on Thursday amid gain in all major indices of market except metal. On global front, Asian markets ended mixed as investors remained on sideline awaiting the outcome of the meetings of the central banks of Britain and the euro zone for signs of more policy stimulus. Meanwhile, European markets made a positive start in the early deals.

Bach home, Indian equity benchmark opened the session marginally in red due to profit-booking by funds and retail investors after two days of massive rally. In the first half, market traded in negative territory amid profit booking, but managed to keep itself above crucial 5,800 level as some support came in from software and technology stocks on expectations of improving sector earnings this year, especially in the United States. However, in the second half, market pared its losses and turned positive on account of buying in front line counters and taking cues from European counterparts. The sentiments turned optimistic after Moody’s Analytics stated that the worst is over for India. Conceding that 2012 was a tough year for India, it has forecast that economic growth will bounce back to around 7% from 2014. Market extended its gains till the end of session on account of buying in realty, media and IT stocks. Finally, Nifty ended the session at its intra-day high level with a gain of 44 points.    

Meanwhile, most of the sectoral indices on the NSE made a positive closing. CNX Realty up by 1.86%, CNX IT up by 1.43%, CNX Media up by 1.13%, CNX Infra up by 0.96% and CNX FMCG up by 0.89% remained the top gainers in the trade, while CNX Metal down 0.99%, remained the only loser.The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 2.46% and reached 13.07.

The India VIX witnessed contraction of 2.46% at 13.07 as compared to its previous close of at 13.40 on Wednesday.

The 50-share CNX Nifty gained 44.70 points or 0.77% to settle at 5,863.30.

Nifty March 2013 futures closed at 5,889.40 on Thursday at a premium of 26.10 points over spot closing of 5,863.30, while Nifty April 2013 futures ended at 5,917.40, at a premium of 54.10 points over spot closing. Nifty March futures saw an addition of 0.24 million (mn) units taking the total outstanding open interest (OI) to 16.99 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 0.10 points at 76.10 compared with spot closing of 76.00. The number of contracts traded was 11,821.

Tata Motors March 2013 futures were trading at a premium of 1.60 points at 307.80 compared with spot closing of 306.20. The number of contracts traded was 11,248.

DLF March 2013 futures were trading at a discount of 0.10 points at 279.85 compared with spot closing of 279.95. The number of contracts traded was 21,184.

Reliance Industries March 2013 futures were at a premium of 0.15 points at 841.15 compared with spot closing of 841.00. The number of contracts traded was 14,453.

Reliance Capital March 2013 futures were at a premium of 2.00 points at 381.50 compared with spot closing of 379.50. The number of contracts traded was 10,408.

Among Nifty calls, 6,000 SP from the March month expiry was the most active call with an addition of 0.31 million open interest.

Among Nifty puts, 5,700 SP from the March month expiry was the most active put with an addition of 0.07 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (6.70 mn) and that for Puts was at 5,700 SP (9.49mn).

The respective Support and Resistance levels are: Resistance 5893.77-- Pivot Point 5847.53-- Support 5817.07.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.21 for March -month contract.

The top five scrips with highest PCR on OI were Colpal 4.00, Divislab 3.00 Kotak Bank 2.86, TCS 2.34, and Tata Motors 1.41.

Among most active underlying, NHPC witnessed contraction of 4.71 million of Open Interest in the March month futures contract followed by Unitech which witnessed an addition of 0.15 million of Open Interest in the near month contract. Meanwhile, IFCI witnessed of an addition of 2.27 million in the March month futures. Also, Jaiprakash Associates witnessed an addition of 0.36 million in Open Interest in the March month contract. Finally, Rcom witnessed contraction of 0.32 million of Open Interest in the near month futures contract.