Nifty ends above crucial 5,750 level on rate cut hopes

CNX Nifty ended higher on Thursday amid buying in all major indices except IT. Investors’ risk-appetite remained firm after prices of global commodities such as Brent crude and gold slipped further, that will help bridge the burgeoning current account deficit (CAD). Additionally, country’s trade data which showed that the exports grew for the third month in a row, rising by 6.97% in March also boosted the market sentiments. On the global front, Asian markets made a mixed closing. Meanwhile, European markets surged by over half a percent in early trade with some investors seeing value after the market’s worst four-day fall in nine months.

 Back home, Indian equity benchmark made a cautious start tracking global cues. Overnight, the US markets pared all their gains on a slew of disappointing earnings and as commodities resumed their sell-off amid ongoing worries over global growth. In the first half, market traded in green amid strong buying across the counters. Investors were seen piling up positions in rate sensitive stocks amid hopes that central bank will cut the key interest rates with a recent fall in inflation and commodity prices. In the second half also, market extended its gains and continued firm trade on the back of buying in frontline counters and taking cues from European counterparts.  Investors’ sentiments also got a boost after Commerce Minister Anand Sharma announced a slew of measures including extension of the popular EPCG scheme to all sectors and sops for Special Economic Zones (SEZs) to boost shipments.  Buying was witnessed in all major indices except IT. Finally, Nifty ended the session near its intra-day high level with a massive gain of 94 points.    

Meanwhile, the sectoral indices on the NSE made a positive closing except IT. CNX Finance up by 2.64%, CNX PSU Bank up by 2.52%, CNX Infra up by 2.50% and CNX Auto up by 2.32% remained the top gainers in the trade. While, CNX IT down 0.05% remained the only loser in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down 6.11% and reached 15.36. 

The India VIX witnessed contraction of 6.11% at 15.36 as compared to its previous close of at 16.36 on Wednesday.

The 50-share CNX Nifty gained 94.40 points or 1.66% to settle at 5,783.10.Nifty April 2013 futures closed at 5783.00 on Thursday at a discount of 0.10 points over spot closing of 5,783.10, while Nifty May 2013 futures ended at 5801.40, at a premium of 18.30 points over spot closing. Nifty April futures saw contraction of 1.41 million (mn) units taking the total outstanding open interest (OI) to 17.58 mn units. The near month April 2013 derivatives contract will expire on April 25, 2013.

From the most active contracts, R Com April 2013 futures were trading at a discount of 0.90 points at 85.5 compared with spot closing of 86.40. The number of contracts traded was 22,864.

Tata Steel April 2013 futures were trading at a premium of 1.05 points at 300.3 compared with spot closing of 299.15. The number of contracts traded was 13,931.

Tata Motors April 2013 futures were trading at a premium of 0.60 points at 282.25 compared with spot closing of 281.65. The number of contracts traded was 23,245.

ICICI Bank April 2013 futures were at a discount of 0.85 points at 1121.15 compared with spot closing of 1,122.00. The number of contracts traded was 21,553. 

Reliance Infrastructure April 2013 futures were at a premium of 1.85 points at 782.85 compared with spot closing of 781.00. The number of contracts traded was 16,023.

Among Nifty calls, 5,800 SP from the April month expiry was the most active call with an addition of 0.53 million open interest.

Among Nifty puts, 5,600 SP from the April month expiry was the most active put with an addition of 0.86 million open interest.

The maximum OI outstanding for Calls was at 5800 SP (7.85 mn) and that for Puts was at 5,600 SP (11.07 mn).

The respective Support and Resistance levels are: Resistance 5824.35 -- Pivot Point 5753.1 -- Support 5711.85.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.37 for April -month contract.

The top five scrips with highest PCR on OI were Col Pal 3.00, Bharti Airtel 2.24, Ultra Cement 2.23, Auro Pharma 2.02 and Maruti 1.90.

Among most active underlying, RCOM witnessed an addition of 0.80 million of Open Interest in the April month futures contract followed by Unitech which witnessed contraction of 1.23 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed contraction of 3.10 million in the April month futures. Also, Reliance Power witnessed contraction of 1.62 million in Open Interest in the April month contract. Finally, BHEL Industries witnessed contraction of 4.18 million of Open Interest in the near month futures contract.