Nifty ends above crucial 5,550 level amid firm global cues

CNX Nifty, snapped 5-day losing streak to end near day's high on Wednesday amid firm global cues and buying in IT and financial stocks. Short covering and value buying at lower levels post the correction in the last five trading sessions also helped market to edge higher. On the global front, Asian equity indices too shut shop in the green as Chinese trade data signaled a recovery in the world’s second largest economy. Moreover, most of the European markets made a positive opening in the early deals on Wednesday.

Back home, buoyed by firm global cues, Indian equity indices made a positive start on hopes of global growth recovery. In the first half, market traded in green as sentiments got a boost after the finance minister’s statement that fiscal deficit will be lower than 5.2 percent of GDP for FY13. Market continued its positive trade near the neutral line as investors remained cautious ahead of the results season. However, in the late afternoon session, market witnessed a steep rally on the back of value buying in fundamentally strong stocks. Positive opening of European counterparts also added to the market’s gain. Buying was witnessed in IT, services, infra and finance stocks. Finally, Nifty ended the session near intra-day high with a massive gain of 63 points.   

Meanwhile, sectoral indices on the NSE made a positive closing except FMCG. CNX Finance up by 2.22%, CNX IT up by 1.99%, CNX infra up by 1.88% and CNX Realty up by 1.25% remained the top gainers in the trade. While, CNX FMCG down 0.57% remained the only loser in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 1.96% and reached 16.49.

The India VIX witnessed contraction of 1.96% at 16.49 as compared to its previous close of at 16.82 on Tuesday.

The 50-share CNX Nifty gained 63.60 points or 1.16% to settle at 5,558.70. Nifty April 2013 futures closed at 5,563.85 on Wednesday at a premium of 5.15 points over spot closing of 5,558.70, while Nifty May 2013 futures ended at 5,583.00, at a premium of 24.30 points over spot closing. Nifty April futures saw an addition of 0.78 million (mn) units taking the total outstanding open interest (OI) to 19.03 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 premium of 0.05 points at 73.25 compared with spot closing of 73.20. The number of contracts traded was 23,777.

Tata Motors April 2013 futures were trading at a premium of 0.45 points at 268.45 compared with spot closing of 268.00. The number of contracts traded was 12,969.

DLF April 2013 futures were trading at a premium of 0.85 points at 236.00 compared with spot closing of 235.15. The number of contracts traded was 15,271.

Reliance Industries April 2013 futures were at a premium of 4.90 points at 782.90 compared with spot closing of 778.00. The number of contracts traded was 12,160. 

ICICI Bank April 2013 futures were at a premium of 0.90 points at 1007.30 compared with spot closing of 1006.40. The number of contracts traded was 20,419.

Among Nifty calls, 5,700 SP from the April month expiry was the most active call with contraction of 0.21 million open interest.

Among Nifty puts, 5,400 SP from the April month expiry was the most active put with an addition of 1.37 million open interest.

The maximum OI outstanding for Calls was at 5700 SP (8.30 mn) and that for Puts was at 5,400 SP (6.44 mn).

The respective Support and Resistance levels are: Resistance 5592.9 -- Pivot Point 5535.05 -- Support 5500.85.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.86 for April -month contract.

The top five scrips with highest PCR on OI were Aurobindo Pharma 1.72, HDFC Bank 1.64, Maruti 1.35, Kotak Bank 1.29 and Arvind 1.26.

Among most active underlying, JP Associates witnessed an addition of 0.18 million of Open Interest in the April month futures contract followed by Unitech which witnessed an addition of 2.11 million of Open Interest in the near month contract. Meanwhile, Shree Renuka Sugars witnessed contraction of 1.14 million in the April month futures. Also, RCOM witnessed an addition of 0.18 million in Open Interest in the April month contract. Finally, RPOWER witnessed an addition of 0.48 million of Open Interest in the near month futures contract.