Nifty ends higher on first day of FY14

CNX Nifty ended higher on Monday - the first trading session of the new fiscal year, amid buying in realty, infra, media and PSU bank shares. On the global front, most of the Asian markets ended the trade in red terrain as sentiments in the region got dampened after Chinese factory data missed market expectations, while European counters remain closed for Easter holidays.

Back home, Indian equity benchmark started the new financial year on positive note with reclaiming its crucial 5,700 level. In the morning session, market traded in green as sentiments remained jubilant on Planning Commission Deputy Chairman Montek Singh Ahluwalia’s statement that the Cabinet Committee on Investments (CCI) is expected to give its nod for a number of projects within the next three weeks. After the positive start, market pared all its early gains and turned into red as murky manufacturing data deterring sentiment at D-street, led to some profit-booking. Investors’ sentiments were also weighted down after the eight core sectors output declined by 2.5% in February 2013, against a growth of 7.7% in the same month of previous year. However, the losses remain capped and market changed its direction again to the positive territory in the late afternoon session, on account of some optimistic statements by the Finance Minister, who believes that the economy is capable of absorbing $50 billion in foreign direct investment per year. Buying was witnessed in all major indices of Nifty except auto and metal stocks. Finally, Nifty ended the session with a gain of 21 points. 

Meanwhile, most of the sectoral indices on the NSE made a positive closing. CNX Realty up by 5.40%, CNX Infra up by 1.57%, CNX Media up by 1.46%, CNX PSU Bank up by 1.20% and CNX Pharma up by 0.91% remained the top gainers in the trade. While, CNX Auto down 0.70% and CNX Metal down 0.56% remained the losers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 2.43% and reached 14.85.

The India VIX witnessed contraction of 2.43% at 14.85 as compared to its previous close of at 15.22 on Thursday.

The 50-share CNX Nifty gained 21.85 points or 0.38% to settle at 5,704.40.

Nifty April 2013 futures closed at 5,726.55 on Monday at a premium of 22.15 points over spot closing of 5,704.40, while Nifty May 2013 futures ended at 5,746.05, at a premium of 41.65 points over spot closing. Nifty April futures saw an addition of 0.94 million (mn) units taking the total outstanding open interest (OI) to 12.11 mn units. The near month April 2013 derivatives contract will expire on April 25, 2013.

From the most active contracts, HDIL April 2013 futures were trading at a discount of 0.05 points at 49.85 compared with spot closing of 49.90. The number of contracts traded was 6,854.

Tata Steel April 2013 futures were trading at a premium of 3.05 points at 316.30 compared with spot closing of 313.25. The number of contracts traded was 7,855.

Tata Motors April 2013 futures were trading at a premium of 2.25 points at 266.85 compared with spot closing of 264.60. The number of contracts traded was 8,509.

DLF April 2013 futures were at a premium of 0.60 points at 253.60 compared with spot closing of 253.00. The number of contracts traded was 22,982. 

Reliance Industries April 2013 futures were at a premium of 3.90 points at 783.25 compared with spot closing of 779.35. The number of contracts traded was 13,123.

Among Nifty calls, 5,900 SP from the April month expiry was the most active call with an addition of 1.09 million open interest.

Among Nifty puts, 5,600 SP from the April month expiry was the most active put with an addition of 1.14 million open interest.

The maximum OI outstanding for Calls was at 5900 SP (4.35 mn) and that for Puts was at 5,600 SP (7.34 mn).

The respective Support and Resistance levels are: Resistance 5724.93 -- Pivot Point 5700.42 -- Support 5679.88.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.08 for April -month contract.

The top five scrips with highest PCR on OI were Gail India 2.14, Ultratech Cement 1.93, Tata Chemical 1.89, Grasim Industries 1.89 and Apollo Tyre 1.87.

Among most active underlying, JP Associates witnessed an addition of 1.56 million of Open Interest in the April month futures contract followed by IFCI which witnessed an addition of 0.63 million of Open Interest in the near month contract. Meanwhile, Unitech witnessed an addition of 3.42 million in the April month futures. Also, RCOM witnessed an addition of 0.92 million in Open Interest in the April month contract. Finally, Hindalco Industries witnessed an addition of 0.67 million of Open Interest in the near month futures contract.