Nifty ends above crucial 5,900 level

CNX Nifty ended higher for fourth straight trading session on Friday led by gains in risk-sensitive stocks amid optimism over a rate-cut by RBI later this month. On global front, Asian markets ended the session largely in positive led by Japanese Nikkei which edged higher by over two and a half percent on optimism that aggressive easing will soon be adopted by the Bank of Japan’s new leadership.  Meanwhile, the markets in Europe traded firmly in early deals with investors anticipating a stronger US jobs figure reading, while unprecedented central bank monetary policy support kept equities around multi-year highs.

Back home, Indian equity benchmark made a positive start with re-capturing its crucial 5,900 level buoyed by firm global cues. Overnight, US markets closed higher on getting an upbeat weekly jobless claims report and ahead of the widely-watched monthly government jobs data. In the first half, market traded in green as the sentiments got buttressed after Moody’s Analytics, an arm of the global ratings agency Moody’s forecasted that India’s economic growth in 2013 will be 6.2% from 5.1% in 2012. Sentiments also got a boost on expected capital inflows from a government-owned power company’s share sale. Market continued its positive trade in the second half too mainly on the back of buying in front line counters and taking cues from European counterparts. Investors’ sentiments also got some boost after leading global brokerage house Goldman Sachs, in a recent report, said that it expects the benchmark index Nifty to hit the 7,000 mark by the end of this year. Market extended its gains till the end of session and reached intra-day high level on account of buying in all major indices except IT. Finally, Nifty ended the session with a gain 82 points.

Meanwhile, all of the sectoral indices on the NSE made a positive closing except IT. CNX Metal up by 2.33%, CNX Finance up by 2.30%, CNX FMCG up by 1.68%, CNX PSE up by 1.52% and CNX Infra up by 1.44% remained the top gainers in the trade. While, CNX IT down 0.72% remained the only loser in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 2.07% and reached 13.34.

The March series OIPCR stood at 1.46 which suggests that the markets are bullish and the sentiments are positive going into the second week of the month.

5700, 5800, and 5900 March series Put Options added 291,100, 1,374,700, and 2,666,950 shares respectively taking their tally of Open Interest to 9,788,700, 9,508,250, and 6,475,200 respectively.

5700, 5800, 5900 and 6000 March series Call Options shed 620,550, 1,019,550, 750 and 666,750 shares respectively taking their tally of Open interest to 1,771,700, 3,511,850, 5,052,400 and 6,035,550 respectively. The 6200 March Call Options were seen to be add 839,450 shares to balloon its open interest to 3,621,050.

The huge built of open interest on the Put options at 5800 levels suggests markets have good supports at 5800 levels.

The India VIX witnessed an addition of 2.07% at 13.34 as compared to its previous close of at 13.07 on Thursday.

The 50-share CNX Nifty gained 82.40 points or 1.41% to settle at 5,945.70.

Nifty March 2013 futures closed at 5,968.30 on Friday at a premium of 22.60 points over spot closing of 5,945.70, while Nifty April 2013 futures ended at 5,998.20, at a premium of 52.50 points over spot closing. Nifty March futures saw contraction of 0.45 million (mn) units taking the total outstanding open interest (OI) to 16.54 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 0.15 points at 77.75 compared with spot closing of 77.60. The number of contracts traded was 12,534.

Tata Motors March 2013 futures were trading at a premium of 2.15 points at 305.95 compared with spot closing of 303.80. The number of contracts traded was 10,457.

Tata Steel March 2013 futures were trading at a premium of 1.85 points at 360.75 compared with spot closing of 358.90. The number of contracts traded was 10,841.

DLF March 2013 futures were at a premium of 0.50 points at 278.80 compared with spot closing of 278.30. The number of contracts traded was 18,032.

Reliance Capital March 2013 futures were at a premium of 1.85 points at 382.35 compared with spot closing of 380.50. The number of contracts traded was 8,817.

Among Nifty calls, 6,000 SP from the March month expiry was the most active call with contraction of 0.98 million open interest.

Among Nifty puts, 5,700 SP from the March month expiry was the most active put with  contraction of 0.02 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (5.71 mn) and that for Puts was at 5,700 SP (9.47mn).

The respective Support and Resistance levels are: Resistance 5971.37-- Pivot Point 5927.18-- Support 5901.52.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.42 for March -month contract.

The top five scrips with highest PCR on OI were Colpal 4.00, Kotak Bank 2.63, Divislab 2.63, TCS 2.28, and Sesa Goa 1.45.

Among most active underlying, NHPC witnessed contraction of 4.70 million of Open Interest in the March month futures contract followed by Unitech which witnessed an addition of 2.69 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed of an addition of 1.04 million in the March month futures. Also, IFCI witnessed contraction of 1.76 million in Open Interest in the March month contract. Finally, Rcom witnessed contraction of 1.24 million of Open Interest in the near month futures contract.