CNX Nifty gaining momentum in late trades, ended near intra-day high level on Friday amid buying in risk sensitive stocks such as banks, auto and realty, thereby marking its fourth consecutive weekly gain. Encouraging March industrial output, which accelerated to 2.5 percent in March, also provided support. On the global front, Asian markets shut shop mostly in green, while, European counters traded firmly in the early deals on Friday.
Back home, Indian equity benchmark made a flat start amid mixed global cues as the US markets gave up some of their last session gains and all the major indices closed marginally in red. In the first half, market traded in green as investors’ sentiments got a boost after India’s annual industrial output growth measured by index of industrial production (IIP) grew by 2.5 percent at 192.3 for the month of March 2013. Market extended its gain and continued firm trade till the end of session on account of buying in front line blue chip counters and taking cues from European counterparts. Further, PMEAC Chairman C Rangarajan’s statement that industrial output data showed a signs of improvement and Indian economy seems to be on the mend also supported the positive sentiments. Buying was witnessed in auto, FMCG and finance stocks. Finally, Nifty ended the session near its intra-day high level with a gain of 44 points.
Meanwhile, most of the sectoral indices on the NSE made a positive closing. CNX Auto up by 2.16%, CNX FMCG up by 1.61%, CNX Finance up by 0.72% and CNX Pharma up by 0.55% remained the top gainers in the trade. While, CNX Metal down 0.15%, CNX Infra down 0.14% and CNX Media down 0.12% remained the losers in the trade. While, the India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 1.57% and reached 16.86.
The India VIX witnessed an addition of 1.57% at 16.86 as compared to its previous close of at 16.60 on Thursday. The 50-share CNX Nifty gained 44.60 points or 0.74% to settle at 6,094.75.
Nifty May 2013 futures closed at 6108.35 on Friday at a premium of 13.60 points over spot closing of 6094.75, while Nifty June 2013 futures ended at 6111.85, at a premium of 17.10 points over spot closing. Nifty May futures saw an addition of 0.90 million (mn) units taking the total outstanding open interest (OI) to 22.50 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 110.70 compared with spot closing of 110.05. The number of contracts traded was 12,859.
Tata Motors May 2013 futures were trading at a premium of 0.15 points at 309.05 compared with spot closing of 308.90. The number of contracts traded was 12,505.
DLF May 2013 futures were trading at a discount of 0.25 points at 237.40 compared with spot closing of 237.65. The number of contracts traded was 11,222.
Reliance Industries May 2013 futures were at a premium of 3.80 points at 814.80 compared with spot closing of 811.00. The number of contracts traded was 14,852.
ICICI Bank May 2013 futures were at a discount of 13.65 points at 1151.35 compared with spot closing of 1165.00. The number of contracts traded was 11,911.
Among Nifty calls, 6,200 SP from the May month expiry was the most active call with an addition of 1.17 million open interest.
Among Nifty puts, 5,800 SP from the May month expiry was the most active put with contraction of 0.13 million open interest.
The maximum OI outstanding for Calls was at 6,200 SP (8.01 mn) and that for Puts was at 5,800 SP (8.98 mn).
The respective Support and Resistance levels are: Resistance 6118.17 -- Pivot Point 6081.88 -- Support 6058.47.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.36 for May -month contract.
The top five scrips with highest PCR on OI were Bharti Airtel 2.13, Siemens 2.05, Kotak Bank 1.62, ITC 1.54, and Tata Motors 1.51.
Among most active underlying, Unitech witnessed contraction of 1.26 million of Open Interest in the May month futures contract followed by Jaiprakash Associates which witnessed an addition of 0.51 million of Open Interest in the near month contract. Meanwhile, Rcom witnessed an addition of 0.10 million in the May month futures. Also, Reliance Power witnessed an addition of 0.19 million in Open Interest in the May month contract. Finally, DLF witnessed contraction of 0.02 million of Open Interest in the near month futures contract.
