Nifty ends near 5,600 level higher amid firm global cues

CNX Nifty ended higher for the second consecutive trading session on Thursday amid firm global cues. Global risk appetite was firm on hopes of global growth recovery after aggressive monetary policy stimulus by Japan coupled with positive economic data from China. Foreign institutional investors (FII) also bought around Rs 40 crore worth of stock in previous session, supported the sentiment. On the global front, Asian equity indices shut shop in green. Meanwhile, most of the European markets made a positive opening in the early deals on Thursday.

Back home, Indian equity benchmark made a gap-up start amid firm global cues. The US markets went for a big rally overnight that lifted S&P 500 to a new record intraday high. In the first half, market traded in positive territory on the back of buying by funds and retail investors. Market continued its positive trade on optimism that Infosys, an Indian IT major’s fourth quarter result and IIP number, which are scheduled to be announced tomorrow will surprise the street positively. Market extended its gain and showed a steep rally in the late afternoon session on account of buying in frontline counters and taking cues from the European counterparts. Buying was witnessed in realty, pharma and IT stocks. Finally, Nifty ended the session with a gain of 35 points.      

Meanwhile, most of the sectoral indices on the NSE made a positive closing. CNX Realty up by 2.48%, CNX IT up by 2.23%, CNX Pharma up by 1.03% and CNX Auto up by 0.78% remained the top gainers in the trade. While, CNX Metal down 0.91%, CNX Energy down 0.55% and CNX PSE down 0.17% remained the losers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 2.91% and reached 16.97.

The India VIX witnessed an addition of 2.91% at 16.97 as compared to its previous close of at 16.49 on Wednesday.

The 50-share CNX Nifty gained 35.30 points or 0.64% to settle at 5,594.00. Nifty April 2013 futures closed at 5,594.80 on Thursday at a premium of 0.80 points over spot closing of 5,594.00, while Nifty May 2013 futures ended at 5,614.25, at a premium of 20.25 points over spot closing. Nifty April futures saw an addition of 0.80 million (mn) units taking the total outstanding open interest (OI) to 19.83 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 0.25 points at 75.50 compared with spot closing of 75.25. The number of contracts traded was 19,434.

Tata Motors April 2013 futures were trading at a premium of 0.10 points at 278.30 compared with spot closing of 278.20. The number of contracts traded was 17,347.

Tata Steel April 2013 futures were trading at a premium of 1.40 points at 299.60 compared with spot closing of 298.20. The number of contracts traded was 14,685.

DLF April 2013 futures were at a discount of 0.10 points at 246.30 compared with spot closing of 246.40. The number of contracts traded was 20,961. 

Reliance Industries April 2013 futures were at a premium of 5.45 points at 773.55 compared with spot closing of 768.10. The number of contracts traded was 18,463.

Among Nifty calls, 5,700 SP from the April month expiry was the most active call with contraction of 0.86 million open interest.

Among Nifty puts, 5,500 SP from the April month expiry was the most active put with an addition of 1.22 million open interest.

The maximum OI outstanding for Calls was at 5700 SP (7.44 mn) and that for Puts was at 5,500 SP (7.36 mn).

The respective Support and Resistance levels are: Resistance 5622.15 -- Pivot Point 5582.5 -- Support 5554.35.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.94 for April -month contract.

The top five scrips with highest PCR on OI were Aurobindo Pharma 1.96, HDFC Bank 1.85, Maruti 1.43, Sun Pharma 1.29 and Arvind 1.25.

Among most active underlying, JP Associates witnessed contraction of 0.64 million of Open Interest in the April month futures contract followed by Unitech which witnessed contraction of 1.34 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed contraction of 3.13 million in the April month futures. Also, R Power witnessed contraction of 0.66 million in Open Interest in the April month contract. Finally, Hindalco Industries witnessed contraction of 0.02 million of Open Interest in the near month futures contract.