Nifty ends in green despite volatility

CNX Nifty ended the volatile session in a positive territory on Tuesday led by gains in media, PSE and pharma stocks. Markets had firmed up after better-than-expected April WPI but pared gains in late trades as profit booking was seen at higher levels. On global front, most of the Asian market ended in green, while European markets made a negative opening on Tuesday.  

Back home, Indian equity benchmark made a flat start as the investors opted to remain on sidelines ahead of the Wholesale Price Index (WPI) inflation data release. In the first half, market traded in green as investors’ sentiments got a boost after WPI surprisingly slowed down to its lowest since 2009 at 4.89% for the month of April, as compared to 5.96% (Provisional) for the previous month of March. In the noon session, market paired its early gains amid profit booking in realty and pharma stocks. However, the market losses remain capped as buying was witnessed in the late afternoon session. Finally, Nifty ended the session with the gain of 14 points.       

Meanwhile, sectoral indices on the NSE made a mixed closing. CNX Media was up by 1.38%, CNX PSE up by 0.75%, CNX Pharma up by 0.74%, CNX Infra up by 0.72% and CNX PSU Bank up by 0.61% remained the top gainers in the trade. While, CNX Realty down 0.48%, CNX FMCG down 0.05% and CNX Metal down 0.03% remained the losers in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility was down by 1.94% and reached 17.17.

The India VIX witnessed contraction of 1.94% at 17.17 as compared to its previous close of at 17.51 on   Monday. The 50-share CNX Nifty gained 14.95 points or 0.25% to settle at 5,995.40.

Nifty May 2013 futures closed at 6006.00 on Tuesday at a premium of 10.60 points over spot closing of 5995.40, while Nifty June 2013 futures ended at 6011.35, at a premium of 15.95 points over spot closing. Nifty May futures saw an addition of 1.23 million (mn) units taking the total outstanding open interest (OI) to 22.54 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 discount of 0.35 points at 112.25 compared with spot closing of 112.60. The number of contracts traded was 19,565.

DLF May 2013 futures were trading at a discount of 0.10 points at 230.30 compared with spot closing of 230.40. The number of contracts traded was 29,849.

Tata Motors May 2013 futures were trading at a discount of 0.25 points at 300.65 compared with spot closing of 300.90. The number of contracts traded was 12,092.

Tata Steel May 2013 futures were at a premium of 1.35 points at 305.05 compared with spot closing of 303.70. The number of contracts traded was 13,742. 

Reliance Industries May 2013 futures were at a premium of 2.80 points at 801.60 compared with spot closing of 798.80. The number of contracts traded was 11,346.

Among Nifty calls, 6,200 SP from the May month expiry was the most active call with contraction of 0.57 million open interest.

Among Nifty puts, 5,800 SP from the May month expiry was the most active put with an addition  of 0.26 million open interest.

The maximum OI outstanding for Calls was at 6,200 SP (7.28 mn) and that for Puts was at 5,800 SP (8.81 mn).

The respective Support and Resistance levels are: Resistance 6024.38 -- Pivot Point 5997.22 -- Support 5968.23.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.31 for May-month contract.

The top five scrips with highest PCR on OI were Siemens 2.02, Bharti Airtel 1.90, Kotak Bank 1.73, Hero MotoCorp 1.38 and UltraTech Cement 1.35.

Among most active underlying, Unitech witnessed an addition of 0.52 million of Open Interest in the May month futures contract followed by Rcom which witnessed an addition of 3.56 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed an addition of 0.58 million in the May month futures. Also, IFCI witnessed contraction of 0.02 million in Open Interest in the May month contract. Finally, R Power witnessed contraction of 1.10 million of Open Interest in the near month futures contract.