Nifty ends at three-month high amid firm global cues

CNX Nifty continuing its northward journey for second consecutive session ended at 3-month high on Tuesday on the back of firm global cues and record buying from foreign institutional investors (FIIs). Foreign institutional investors were net buyers of Rs 897.47 crore of stocks on May 6, taking the 2013 net buying to a total of $12.17 billion. On the global front, Asian markets ended the session in green. Meanwhile, European counterparts too opened higher on account of strong earnings from major banks.

Back home, Indian equity benchmark made a positive start with surpassing its crucial 6,000 level supported by firm global cues. Overnight, the US markets closed mostly higher as April jobs report exceeded expectations. In the first half, market traded in green as sentiment remained firm on hopes of encouraging Index of Industrial Production (IIP) data for March to be released later this week. Further, strong FII flows on May 6 also added to bullish sentiments. Market extended its early gains and continued firm trade till the end on account of continued buying in all major indices of the market and taking cues from European counterparts. Finally, Nifty ended the session near its intra-day high level with a massive gain of 72 points.      

Meanwhile, sectoral indices on the NSE made a positive closing. CNX FMCG up by 2.03%, CNX Finance up by 1.64%, CNX Realty up by 1.63% and CNX Pharma up by 1.04% remained the top gainers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 4.17% and reached 16.50.

The India VIX witnessed an addition of 4.17% at 16.50 as compared to its previous close of at 15.84 on Monday.

The 50-share CNX Nifty gained 72.50 points or 1.21% to settle at 6,043.55.Nifty May 2013 futures closed at 6050.30 on Tuesday at a premium of 6.75 points over spot closing of 6043.55, while Nifty June 2013 futures ended at 6057.30, at a premium of 13.75 points over spot closing. Nifty May futures saw an addition of 1.68 million (mn) units taking the total outstanding open interest (OI) to 20.80 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 0.95 points at 113.00 compared with spot closing of 112.05. The number of contracts traded was 11,510.

DLF May 2013 futures were trading flat compared with spot closing of 240.50. The number of contracts traded was 17,263.

Tata Steel May 2013 futures were trading at a discount of 0.60 points at 324.95 compared with spot closing of 325.55. The number of contracts traded was 10,817.

Reliance Industries May 2013 futures were at a discount of 7.80 points at 822.20 compared with spot closing of 830.00. The number of contracts traded was 15,266. 

United Spirit May 2013 futures were at a premium of 5.80 points at 2351.75 compared with spot closing of 2345.95. The number of contracts traded was 22,069.  

Among Nifty calls, 6,200 SP from the May month expiry was the most active call with an addition of 1.74 million open interest.

Among Nifty puts, 5,800 SP from the May month expiry was the most active put with an addition of 0.90 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (5.61 mn) and that for Puts was at 5,800 SP (8.52 mn).

The respective Support and Resistance levels are: Resistance 6068.38 -- Pivot Point 6025.67 -- Support 6000.83.

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

The top five scrips with highest PCR on OI were Bharti Airtel 1.87, Siemens 1.87, Hero Moto Co 1.47, AXIS Bank 1.41 and Ultra Cements Co 1.39.

Among most active underlying, Unitech witnessed an addition of 0.95 million of Open Interest in the May month futures contract followed by Jaiprakash Associates which witnessed an addition of 1.10 million of Open Interest in the near month contract. Meanwhile, Rcom witnessed contraction of 1.52 million in the May month futures. Also, Reliance Power witnessed contraction of 0.63 million in Open Interest in the May month contract. Finally, Hindalco Industries witnessed an addition of 0.12 million of Open Interest in the near month futures contract.