Nifty ends above crucial 6,050 mark amid firm global cues

CNX Nifty ended higher for the third straight day on Wednesday amid firm global cues and strong corporate earnings. The Congress victory in Karnataka state elections also helped improve sentiment. On the global front, Asian markets shut shop mostly in green as strong Chinese trade data added to positive sentiment. Meanwhile, European counters after a flat start, traded steady on Wednesday.

Back home, Indian equity benchmark made a positive start with surpassing its crucial 6,050 level supported by firm global cues as the US markets extended their gains overnight. Market continued its positive trade as sentiments remained jubilant after National Council of Applied Economic Research (NCAER) said the Indian economy is likely to grow by 6.2 percent in the current financial year. Further, the government’s statement that it has taken a slew of initiatives to boost exports and reduce imports to lower trade deficit and thereby Current Account Deficit (CAD), also added to the optimistic sentiments. In the second half, market continued its firm trade on account of buying in front line blue chip counters. Buying was witnessed in media, FMCG and finance stocks. Finally, Nifty ended the session near its intra-day high level with a gain of 25 points. 

 Meanwhile, sectoral indices on the NSE made a mixed closing. CNX Media up by 2.84%, CNX FMCG up by 1.27%, CNX Finance up by 0.93% and CNX Realty up by 0.20% remained the top gainers in the trade. While CNX Infra down 0.78%, CNX Metal down 0.47%, CNX PSU Bank and Auto both down 0.40% remained the losers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 1.58% and reached 16.76.

The India VIX witnessed an addition of 1.58% at 16.76 as compared to its previous close of at 16.50 on Tuesday.

The 50-share CNX Nifty gained 25.75 points or 0.43% to settle at 6,069.30.

Nifty May 2013 futures closed at 6075.20 on Wednesday at a premium of 5.90 points over spot closing of 6069.30, while Nifty June 2013 futures ended at 6083.10, at a premium of 13.80 points over spot closing. Nifty May futures saw an addition of 0.39 million (mn) units taking the total outstanding open interest (OI) to 21.20 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 0.25 points at 112.10 compared with spot closing of 111.85. The number of contracts traded was 10,569.

DLF May 2013 futures were trading at a discount of 1.85 points at 236.55 compared with spot closing of 238.40. The number of contracts traded was 15,886.

Tata Motors May 2013 futures were trading at a premium of 1.00 points at 301.20 compared with spot closing of 300.20. The number of contracts traded was 11,004.

Reliance Industries May 2013 futures were at a discount of 6.60 points at 823.60 compared with spot closing of 830.20. The number of contracts traded was 11,742. 

ICICI Bank May 2013 futures were at a discount of 17.50 points at 1142.65 compared with spot closing of 1160.15. The number of contracts traded was 11,925.

Among Nifty calls, 6,200 SP from the May month expiry was the most active call with an addition of 0.62 million open interest.

Among Nifty puts, 5,800 SP from the May month expiry was the most active put with an addition of 0.27 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (6.23 mn) and that for Puts was at 5,800 SP (8.79mn).

The respective Support and Resistance levels are: Resistance 6093.58 -- Pivot Point 6059.27 -- Support 6034.98.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.42 for May -month contract.

The top five scrips with highest PCR on OI were Bharti Airtel 1.94, Siemens 1.84, Ultra Cements Co 1.52 Hero Moto Co 1.42, Kotak Bank 1.37.

Among most active underlying, Unitech witnessed contraction of 1.12 million of Open Interest in the May month futures contract followed by Jaiprakash Associates which witnessed an addition of 0.55 million of Open Interest in the near month contract. Meanwhile, Rcom witnessed contraction of 0.90 million in the May month futures. Also, IFCI witnessed contraction of 1.42 million in Open Interest in the May month contract. Finally, R Power witnessed an addition of 0.06 million of Open Interest in the near month futures contract.