Nifty ends near day’s high; IT, metal stocks rallies

CNX Nifty ended the volatile session near day's high on Monday led by buying in metal, IT and auto stocks. Banking stocks, which was under pressure since morning recovered their losses and ended in positive territory even as the online portal Cobrapost's sting operation alleged 23 public and private sector banks involved in money laundering activities. On the global front, Asian markets ended the session mostly in green, while, European markets made a mixed opening on Monday.

Back home, Indian equity benchmark made a positive start buoyed by firm global cues as the US markets rallied in previous session on getting better than expected jobs data and unemployment rate that fell to its lowest in more than four years. In the first half, market witnessed volatile trade in green as sentiments remained cautious after global credit rating agency Standard & Poor's ruled out rating upgrade for India at the current juncture. Market pared all its gains and traded near the neutral line as banking stocks tumbled with online media firm (Cobrapost) continuing money laundering allegations against as many as 23 banks. However, in the late afternoon session, market picked up momentum and continued positive trade till the end amid buying in front line blue chip counters and taking cues from European counterparts. Buying was witnessed in metal, IT, auto and energy stocks. Banking stocks also recovered from the day’s low and ended in green. Finally, Nifty ended the session near its intra-day high level with a gain of 27 points. 

Meanwhile, sectoral indices on the NSE made a mixed closing. CNX Metal up by 2.05%, CNX IT up by 1.90%, CNX Auto up by 1.50%, CNX Energy up by 0.98% and CNX Media up by 0.86% remained the top gainers in the trade. While CNX FMCG down 0.73%, CNX PSE down 0.21%, CNX Finance down 0.07% and CNX infra down 0.04% remained the losers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 1.86% and reached 15.84.

The India VIX witnessed an addition of 1.86% at 15.84 as compared to its previous close of at 15.55 on Friday.

The 50-share CNX Nifty gained 27.05 points or 0.46% to settle at 5,971.05.Nifty May 2013 futures closed at 5971.30 on Monday at a premium of 0.25 points over spot closing of 5,971.05, while Nifty June 2013 futures ended at 5978.35, at a premium of 7.30 points over spot closing. Nifty May futures saw an addition of 0.63 million (mn) units taking the total outstanding open interest (OI) to 19.12 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 0.65 points at 113.10 compared with spot closing of 112.45. The number of contracts traded was 18,210.

DLF May 2013 futures were trading at a discount of 0.25 points at 232.90 compared with spot closing of 233.15. The number of contracts traded was 13,742.

Tata Steel May 2013 futures were trading at a premium of 1.45 points at 323.95 compared with spot closing of 322.50. The number of contracts traded was 13,466.

Reliance Industries May 2013 futures were at a discount of 7.90 points at 814.60 compared with spot closing of 822.50. The number of contracts traded was 15,852. 

Reliance Capital May 2013 futures were at a premium of 1.85 points at 382.85 compared with spot closing of 381.00. The number of contracts traded was 14,341. 

Among Nifty calls, 6,000 SP from the May month expiry was the most active call with contraction of 0.04 million open interest.

Among Nifty puts, 5,800 SP from the May month expiry was the most active put with an addition of 0.42 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (5.51 mn) and that for Puts was at 5,800 SP (7.61 mn).

The respective Support and Resistance levels are: Resistance 5988.88 -- Pivot Point 5958.67 -- Support 5940.83.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.28 for May -month contract.

The top five scrips with highest PCR on OI were Siemens 1.99, Ultra Cement Co 1.94, Hero Moto Co 1.39, Bharti Airtel 1.38, Adani Ports 1.29.

Among most active underlying, Unitech witnessed contraction of 0.22 million of Open Interest in the May month futures contract followed by RCOM which witnessed an addition of 0.11 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed an addition of 1.18 million in the May month futures. Also, IFCI witnessed contraction of 0.44 million in Open Interest in the May month contract. Finally, Reliance Power witnessed an addition of 1.37 million of Open Interest in the near month futures contract.