Nifty snaps September F&O series up by 3.63%

The domestic index S&P CNX Nifty finally finished the September series on a jubilant note recapturing its crucial 5,000 level as global cues remained strong, moreover the index performed well during the series and closed higher by about 176 points or 3.63 percent compared to last series. Earlier, the Indian equity market made a weak start amid increased uncertainties across European economies and touched its intraday low in early morning trade near its crucial 4,900 mark. Meanwhile, weekly inflation reading showed that food and fuel inflation jumped to 9.13% and 14.69% for the week ended September 17 from 8.84% and 13.69% in the previous week, respectively. The acceleration in inflation shows persistently high inflationary pressures on the economy which may prompt the RBI to extend its aggressive monetary tightening measures. But, market shrugged off the dismal weekly inflation number and started pairing its earlier losses. In the early noon trade, market touched green as local sentiments improved ahead of a crucial vote in Germany where leaders are expected to approve a proposal to increase the scope and size of the European Financial Stability Facility (EFSF). Afterwards, market continued its bull run till end as European counterparts regained its strength after a murky opening. Moreover, PSU oil marketing companies viz. BPCL, HPCL and IOC all gained decently in trade as crude oil prices reversing their gains on uncertainty in Europe turned weak. Finally, Nifty snapped the session with a gain of about one and a half percent regaining its crucial 5,000 mark.

On the global front, the US markets tumbled on Wednesday, halting a three-day winning streak, on heightened concern that European leaders have conflicting views on resolving the euro-zone’s debt crisis. However, most of the Asian equity indices ended the day’s trade in the green on Thursday ahead of an expected vote by Germany’s parliament to approve the strengthening of a bailout fund intended to help European countries mired in debt crises. Moreover, most of the European counterparts were trading in the positive terrain at this point of time. Back home, most of the sectoral indices on the NSE settled in the green, CNX IT remained the major gainer, up 2.17% followed by CNX FMCG up 1.77% and Bank Nifty up by 1.48% while CNX PSU Bank and CNX Infra declined 0.33% and 0.25% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged 2.90% and reached 31.07, while S&P Nifty closed at 5,015.45 losing 69.55 points or 1.41%.

The India VIX declined by 2.90% at 31.07 as compared to its previous close of 32.00 on Wednesday. 

The 50-share S&P CNX Nifty gained 69.55 points or 0.41% and settled at 5,015.45.

Nifty September 2011 futures expired at 5,016.40 at a premium of 0.95 points over spot closing of 5,015.45, while Nifty October 2011 futures were at 5,036.00 at a premium of 20.55 points over spot closing.Nifty October futures saw addition of 47.71% or 6.68 million (mn) units, taking the total outstanding open interest (OI) to 20.71 mn units.

From the most active contract by contract value, RIL September 2011 futures were at a discount of 2.50 point at 807.55 compared with spot closing of 810.05. The number of contracts traded was 36,336.

SBI’s September 2011 futures were at a discount of 3.20 point at 1952.60 compared with spot closing of 1955.80. The number of contracts traded was 25,570.

RIL October 2011 futures were at a premium of 7.05 point at 807.55 compared with spot closing of 810.05. The number of contracts traded was 36,336.

Infosys September 2011 futures were at a premium of 1.70 point at 2551.75 compared with spot closing of 2550.05. The number of contracts traded was 16,767.

L&T October 2011 futures were at a premium of 8.45 point at 1382.00 compared with spot closing of 1373.55. The number of contracts traded was 15,276.Among Nifty calls, 5000 SP from the September month expiry was the most active call with contraction of 3.59 million or 50.37%.

Among Nifty puts, 4900 SP from the September month expiry was the most active put with addition of 3.22 million or 45.54%.

The maximum Call OI outstanding for Calls was at 5000 SP (3.54 mn) and that for Puts was at 4900 SP (10.30 mn).

The respective Support and Resistance levels are: Resistance 5064.46-- Pivot Point 4985.23-- Support 4936.21.

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

The top five scrips with highest PCR on OI were United Phosphorus 6.00, TTK Prestige 4.61, Hotel Leela Ventures 4.33, Kotak Bank 2.63 and Siemens 2.44.

Among most active underlying, RIL witnessed an addition of 3.22% of Open Interest (OI) in the September month futures contract followed by SBI witnessed a contraction of 17.06% of Open Interest (OI) in the near month contract. Meanwhile Tata Motors witnessed a decline of 2.20% of OI in the September month futures. Also, Tata Steel witnessed a contraction of 11.07% of Open Interest (OI) in the September month contract followed by Infosys witnessed an addition of 7.27% of Open Interest (OI) in the September month contract.