Nifty ends higher amid firm global cues

CNX Nifty ended near intra-day high on Tuesday on the back of positive cues from European peers and after Finance Minister P Chidambaram reiterated India's commitment to additional economic reforms. Buying in index heavyweight, Reliance stocks also added to the market’s gain after Ambani brothers joined hands for telecom business. On the global front, European counters edged higher in early deals as Markit’s Euro-zone Manufacturing Purchasing Managers’ Index (PMI) fell in March to 46.8 from 47.9 in February, slightly better than a preliminary estimate of 46.6. Meanwhile, Asian markets shut shop mostly in the green.

Back home, Indian equity benchmark made a negative start as funds and retail investors opted to book profit amid a weak trend in global markets. Overnight, the US markets closed lower as sentiments remain subdued on disappointing manufacturing data. In the first half, market traded in red however losses remain capped as investors’ sentiments got a boost after Finance Minister P Chidambaram reiterated India's commitment to additional economic reforms and the government's pro growth stance. However, in the second half, market pared its early losses and entered the positive territory on account of positive opening of European counterparts, which encouraged investors to go for some fundamentally strong blue chip stocks. Market continued its firm trade till the end of session. Buying was witnessed in all major indices of Nifty except FMCG stocks. Finally, Nifty ended the session near its intra-day high level with a gain of 43 points.

Meanwhile, most of the sectoral indices on the NSE made a positive closing. CNX PSU Bank up by 2.71%, CNX Pharma up by 2.14%, CNX Metal up by 2.03%, CNX Energy up by 1.67% and CNX PSE up by 1.33% remained the top gainers in the trade. While, CNX FMCG down 0.01% remained the only loser in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 5.05% and reached 14.10.

The India VIX witnessed contraction of 5.05% at 14.10 as compared to its previous close of at 14.85 on Monday.

The 50-share CNX Nifty gained 43.70 points or 0.77% to settle at 5,748.10.

Nifty April 2013 futures closed at 5,766.60 on Tuesday at a premium of 18.50 points over spot closing of 5,748.10, while Nifty May 2013 futures ended at 5,784.55, at a premium of 36.45 points over spot closing.

Nifty April futures saw an addition of 1.08 million (mn) units taking the total outstanding open interest (OI) to 13.20 mn units. The near month April 2013 derivatives contract will expire on April 25, 2013.

From the most active contracts, Reliance Communications April 2013 futures were trading at a discount of 3.05 points at 63.65 compared with spot closing of 66.70. The number of contracts traded was 21,117.

Tata Steel April 2013 futures were trading at a premium of 1.65 points at 321.35 compared with spot closing of 319.70. The number of contracts traded was 8,301.

Tata Motors April 2013 futures were trading at a premium of 1.50 points at 268.50 compared with spot closing of 267.00. The number of contracts traded was 17,884.

DLF April 2013 futures were at a premium of 2.25 points at 256.90 compared with spot closing of 254.65. The number of contracts traded was 19,595. 

United Spirits April 2013 futures were at a premium of 25.60 points at 1875.70 compared with spot closing of 1850.10. The number of contracts traded was 16,690.

Among Nifty calls, 5,900 SP from the April month expiry was the most active call with an addition of 0.82 million open interest.

Among Nifty puts, 5,600 SP from the April month expiry was the most active put with an addition of 0.91 million open interest.

The maximum OI outstanding for Calls was at 5900 SP (5.18 mn) and that for Puts was at 5,600 SP (8.26 mn).

The respective Support and Resistance levels are: Resistance 5772.75 -- Pivot Point 5729.95 -- Support 5705.30.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.19 for April -month contract.

The top five scrips with highest PCR on OI were Aditya Birla Nuvo 4.00, Apollo Tyre 1.68, Bank of India 1.57, Grasim Industries 1.56 and Tata Communications 1.43.

Among most active underlying, JP Associates witnessed contraction of 0.82 million of Open Interest in the April month futures contract followed by Unitech which witnessed contraction of 0.70 million in the April month futures. Also, RCOM witnessed an addition of 6.86 million in Open Interest in the April month contract. Finally, Hindalco Industries witnessed an addition of 0.008 million of Open Interest in the near month futures contract.