Nifty snaps April series above 5,900 level

CNX Nifty made a remarkable closing of the April F&O series gaining 4.11% and above 5,900 crucial level for the first time in the month, as rate cut hopes continued to boost rate-sensitive sectors. On global front, Asian counters ended mixed as investors remained on sidelines ahead of the Bank of Japan’s policy board meeting on April 26, 2013. Meanwhile, most of the European markets made a positive opening in the early deals on Thursday.

Back home, Indian equity benchmark made a positive start, buoyed by positive global cues as global risk appetite remained firm on hopes of aggressive monetary policy easing by the European Central Bank next week. In the first half, market traded in positive territory as investors got some boost from Finance minister P Chidambaram’s statement that the government is keen to get the insurance, food security and land acquisition legislations approved by Parliament to sustain the reform momentum. Sentiments also remained firm on expectations that easing inflation and weak commodity prices might prompt the central bank to cut interest rate in its monetary policy meeting on May 3. Market continued its firm trade in the second half too, on account of buying in frontline counters and taking cues from European markets. Buying was witnessed in auto, PSU banks, media and energy stocks. Finally, Nifty ended the session near its intra-day high level with the massive gain of 79 points.   

Meanwhile, most of the sectoral indices on the NSE made a positive closing. CNX Auto up by 2.66%, CNX Pharma up by 2.40%, CNX Media up by 2.36%, CNX Finance up by 1.86% and CNX energy up by 1.66% remained the top gainers in the trade. While, CNX IT down 1.58%  and CNX Realty down 0.45% remained the loser in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 5.77% and reached 14.20.

The India VIX witnessed contraction of 5.77% at 14.20 as compared to its previous close of at 15.07 on Tuesday.

The 50-share CNX Nifty gained 79.40 points or 1.36% to settle at 5,916.30.

Nifty May 2013 futures closed at 5921.80 on Wednesday at a premium of 5.50 points over spot closing of 5916.30, while Nifty June 2013 futures ended at 5927.05, at a premium of 10.75 points over spot closing. Nifty May futures saw an addition of 6.05 million (mn) units taking the total outstanding open interest (OI) to 15.01 mn units. The near month May 2013 derivatives contract will expire on May 30, 2013.

From the most active contracts, Reliance Industries May 2013 futures were trading at a discount of 3.25 points at 815.75 compared with spot closing of 819.00. The number of contracts traded was 25,364.

ICICI Bank May 2013 futures were trading at a discount of 4.25 points at 1169.75 compared with spot closing of 1174.00. The number of contracts traded was 22,600.

Axis Bank May 2013 futures were trading at a discount of 7.05 points at 1490.95 compared with spot closing of 1498.00. The number of contracts traded was 19,857.

SBI May 2013 futures were at a discount of 36.65 points at 2287.25 compared with spot closing of 2323.90. The number of contracts traded was 22,556. 

TCS May 2013 futures were at a premium of 4.00 points at 1405.00 compared with spot closing of 1401.00. The number of contracts traded was 18,912.Among Nifty calls, 5,900 SP from the May month expiry was the most active call with an addition of 0.43 million open interest.

Among Nifty puts, 5,800 SP from the May month expiry was the most active put with an addition of 2.48 million open interest.

The maximum OI outstanding for Calls was at 5,900 SP (4.16 mn) and that for Puts was at 5,800 SP (4.86 mn).

The respective Support and Resistance levels are: Resistance 5942.83 -- Pivot Point 5898.07 -- Support 5871.53.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.18 for May -month contract.

The top five scrips with highest PCR on OI were Ultra Cement 2.91, JSW Steel 2.45, Tata Chemical 2.25, Axis Bank 1.60 and Arvind 1.43.

Among most active underlying, RCOM witnessed contraction of 10.49 million of Open Interest in the May month futures contract followed by Unitech which witnessed contraction of 14.68 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed contraction of 17.00 million in the May month futures. Also, IFCI witnessed contraction of 15.42 million in Open Interest in the May month contract. Finally, R Power witnessed contraction of 13.66 million of Open Interest in the near month futures contract.