Nifty ends near 6,000 level on rate cut hopes

CNX Nifty ended higher for the third straight session on Thursday on the back of buying in rate-sensitive stocks, as risk appetite improved on hopes that the Reserve Bank of India (RBI) will cut interest rates in its credit policy on May 3 after headline inflation declined to over 3-year low in March. On the global front, Asian markets ended mostly in red on the back of weaker-than-expected economic data from US and China, the two biggest economies of the world. Meanwhile, European counters opened mostly in red on Thursday. 

Back home, Indian equity benchmark made a cautious start pressurized by weak global cues as the US markets tanked overnight on getting a disappointing batch of economic data. In the first half, market traded in green as investors were seen pilling up positions in rate-sensitive stocks on rate cut hopes. Market continued its firm trade till the end on account of strong buying in front line blue chip counters and reached near the crucial 6,000 level. Sentiments remained optimistic despite India’s manufacturing PMI expanded the least since Nov 2011 in April; with factory output rising at weakest pace in current 49-month period of expansion. Moreover, value buying witnessed in IT stocks also added to the market’s gain. Buying was witnessed in all major indices. Finally, Nifty ended the session with a massive gain of 69 points.  

Meanwhile, all major sectoral indices on the NSE made a positive closing. CNX IT up by 2.62%, CNX Infra up by 1.63%, CNX Finance up by 1.43% and CNX PSU Bank up by 1.37% remained the top gainers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 7.81% and reached 16.28.

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he India VIX witnessed an addition of 7.81% at 16.28 as compared to its previous close of at 15.10 on Tuesday.

The 50-share CNX Nifty gain 69.15 points or 1.17% to settle at 5,999.35.

Nifty May 2013 futures closed at 6007.40 on Thursday at a premium of 8.05 points over spot closing of 5,999.35, while Nifty June 2013 futures ended at 6014.35, at a premium of 15.00 points over spot closing. Nifty May futures saw an addition of 2.19 million (mn) units taking the total outstanding open interest (OI) to 18.71 mn units. The near month May 2013 derivatives contract will expire on May 30, 2013.

From the most active contracts, Reliance Communications May 2013 futures were trading at a premium of 0.20 points at 104.95 compared with spot closing of 104.75. The number of contracts traded was 20,019.

Reliance Industries May 2013 futures were trading at a discount of 8.65 points at 796.45 compared with spot closing of 805.10. The number of contracts traded was 22,417.

United Spirits May 2013 futures were trading at a premium of 6.45 points at 2300.45 compared with spot closing of 2294.00. The number of contracts traded was 26,065.

HUL May 2013 futures were at a premium of 2.30 points at 575.15 compared with spot closing of 572.85. The number of contracts traded was 14,230. 

ICICI Bank May 2013 futures were at a discount of 13.60 points at 1157.40 compared with spot closing of 1171.00. The number of contracts traded was 13,819.

Among Nifty calls, 5,900 SP from the May month expiry was the most active call with an addition of 0.42 million open interest.

Among Nifty puts, 5,700 SP from the May month expiry was the most active put with an addition of 0.59 million open interest.

The maximum OI outstanding for Calls was at 5,900 SP (5.45 mn) and that for Puts was at 5,700 SP (6.87 mn).

The respective Support and Resistance levels are: Resistance 6042.22 -- Pivot Point 5976.58 -- Support 5933.72 .

The Nifty Put Call Ratio (PCR) OI wise stood at 1.17 for May -month contract.

The top five scrips with highest PCR on OI were Siemens 1.94, Bharti Airtel 1.40, Axis Bank 1.37, HUL 1.25, and Adani Ports 1.25.

Among most active underlying, Unitech witnessed an addition of 50.28 million of Open Interest in the May month futures contract followed by Jaiprakash Associates which witnessed  an addition  of 0.88 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed contraction of 2.11 million in the May month futures. Also, R Power witnessed an addition of 0.94 million in Open Interest in the May month contract. Finally, Hindalco Industries witnessed an addition of 0.43 million of Open Interest in the near month futures contract.