Last hour recovery takes Nifty higher

The local benchmark, Nifty extended its jubilation mood and ended the range bound day of trade a tad below its crucial 5,600 level with a gain of more than half a percent. However, the index traded in the positive terrain throughout the day while, last hour recovery helped benchmark to snap the day’s trade near its intraday high. Initially, the Indian equity market made a positive start tracking supportive cues from the global indices. Moreover, TVS and Maruti announced better than expected monthly sales numbers for May in the morning that too supported the sentiments. Afterwards, market fell sharply and touched its intraday low in mid morning trade on the back of profit booking witnessed in some of the key heavyweights and realty space stocks while, some of the Asian peers pared their initial gains too, dampening the sentiments. But, benchmark regained its strength and traded in the tight range till the end. Meanwhile, M&M reported the better than estimated May sales number, while in Cement segment, ACC reported 13.71% increase in its May 2011 despatches which were at 1.99 million tonnes against 1.75 million tonnes in May 2010. But, it was the last hour of trade where the index changed its gear and started moving northward as buying witnessed in key heavyweights like, NTPC, Bharti Airtel, L&T, Reliance Infrastructure, Maruti Suzuki and SBI. Moreover, Airlines stocks viz, Kingfisher Airlines, Spicejet and Jet Airways all gained in the range of 1-2 percent. Finally, Nifty snapped the day’s trade near its intraday high with a gain of over half a percent.

On the global front, the US markets closed higher on the last trading day of the month and most of the Asian equity indices finished the day’s trade in the positive terrain on Wednesday. All the European counterparts were trading lower where major indices like; DAX, CAC and FTSE all edged down in the trade at this point of time. Back home, on the sectoral front on the NSE, CNX Infra remained the biggest gainer, up by 1.66% followed by CNX IT and Bank Nifty while, CNX Realty lost 0.17% in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 0.53% and reached 16.73, while S&P Nifty closed at 5,592.00 gaining 0.57%. The markets registered volumes of over Rs 1.09 lakh crore while the turnover for NSE F&O segment remained steady compared to Monday at over Rs 0.97 lakh crore.

The India VIX lost 0.53% at 16.73 on Wednesday as compared to its previous close of 16.82 on Tuesday.  

The 50-share S&P CNX Nifty gained 31.85 points or 0.57% and settled at 5,592.00.

Nifty June 2011 futures closed at 5,592.50, at a premium of 0.50 points over spot closing of 5,592.00, while Nifty July 2011 futures were at 5,605.85 at a premium of 13.85 points over spot closing. The near month June 2011 derivatives contract expires on Thursday, June 30, 2011. Nifty June futures saw addition of 12.23% or 2.77 million (mn) units, taking the total outstanding open interest (OI) to 25.49 mn units.

From the most active underlying, SBI's June 2011 futures closed at a premium of 8.00 points at 2341.00 compared with spot closing of 2333.00. The number of contracts traded was 26,575.

Tata Steel June 2011 futures were at a premium of 2.30 point at 584.55 compared with spot closing of 582.25. The number of contracts traded was 19,673.

Tata Motors June 2011 futures were at a premium of 4.15 points at 1081.40 compared with spot closing of 1077.25. The number of contracts traded was 16,875.

ICICI Bank June 2011 futures were at a discount of 9.30 at 1075.50 compared with spot closing of 1084.80. The number of contracts traded was 14,723.

Infosys June 2011 futures were at a premium of 18.30 points at 2830.25 compared with spot closing of 2811.95. The number of contracts traded was 9,785.  Among Nifty puts, 5500 SP from the June month expiry was the most active put with addition of 1.09 million or 25.72%.Among Nifty calls, 5500 SP from the June month expiry was the most active put with addition of 0.04 million or 0.83%.

The maximum Call OI outstanding was at 5500 SP (5.03mn) and that for Puts at 5400 SP (5.32mn).

The respective Support and Resistance levels are: Resistance 5606.41-- Pivot Point 5582.933-- Support 5568.51.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.40 for June -month contract.

The top five scrips with highest PCR on OI were Sintex - 5.00, Areva T&D- 2.00, Punjab National Bank -1.40, Sun Pharmaceuticals - 1.21 and Bajaj Auto - 1.14.

Among most active underlying, State Bank of India (SBI) witnessed an addition of 1.41% in the June month futures contract, followed by Tata Steel which added 10.07% of Open Interest (OI) in the near month contract. Meanwhile, Tata Motors too witnessed an addition of 8.65% in the June month futures coupled with  L&T which added 9.30% in the June month future contract.