Nifty ends higher after S&P’s maintain India rating

CNX Nifty bouncing back in late afternoon session ended higher on Friday on the back of buying witnessed in realty, banking and infra stocks as risk appetite improved after Standard & Poor's (S&P) maintained its rating on India without downgrading it which was feared by market participants due to country's burgeoning current account deficit. On the global front, Asian markets ended mostly in green with China’s Shanghai garnering gain of about one and a half percent. Meanwhile, European markets opened lower on Friday.

Back home, Indian equity benchmark made a flat start amid weak global cues as the US markets turned lower overnight. In the first half, market traded in negative territory in absence of any major trigger, though losses remain capped amid alternate bouts of buying and selling. However, market witnessed a strong rally in the last leg of trade as investors’ sentiments got a boost after S&P maintained its rating on India without downgrading it. The rating agency has affirmed its 'BBB-' long-term and 'A-3' short-term unsolicited sovereign credit ratings on India. Further, the global rating agency said there is 1 in 3 chance of downgrading India rating in the next 12 months. Investors were seen piling position in banking, realty and infra stocks. Finally, Nifty ended the session with a gain of 17 points.

Meanwhile, sectoral indices on the NSE made a mixed closing. CNX Realty up by 2.03%, CNX Infra up by 1.72%, CNX PSE up by 0.79% and CNX PSU Bank up by 0.67% remained the top gainers in the trade. While, CNX Media down 0.84%, CNX Pharma down 0.39%, CNX Metal down 0.22% and CNX Auto down 0.09% remained the losers in the trade. While, the India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 0.96% and reached 17.57.

The India VIX witnessed contraction of 0.96% at 17.57 as compared to its previous close of at 17.74 on Thursday. The 50-share CNX Nifty gained 17.40 points or 0.28% to settle at 6,187.30.

Nifty May 2013 futures closed at 6196.10 on Friday at a premium of 8.80 points over spot closing of 6187.30, while Nifty June 2013 futures ended at 6201.40, at a premium of 14.10 points over spot closing. Nifty May futures saw an addition of 0.03 million (mn) units taking the total outstanding open interest (OI) to 25.64 mn units. The near month May 2013 derivatives contract will expire on May 30, 2013.

From the most active contracts, JP Associates May 2013 futures were trading at a premium of 0.35 points at 82.55 compared with spot closing of 82.20. The number of contracts traded was 15,404.

BHEL May 2013 futures were trading at a discount of 1.45 points at 202.05 compared with spot closing of 203.50. The number of contracts traded was 13,851.

ITC May 2013 futures were trading at a premium of 2.30 points at 336.55 compared with spot closing of 334.25. The number of contracts traded was 23,430.

DLF May 2013 futures were at a premium of 1.15 points at 250.55 compared with spot closing of 249.40. The number of contracts traded was 19,535. 

Reliance Industries May 2013 futures were at a premium of 1.75 points at 838.30 compared with spot closing of 836.55. The number of contracts traded was 16,542.

Among Nifty calls, 6,200 SP from the May month expiry was the most active call with an addition of 0.38 million open interest.

Among Nifty puts, 6,000 SP from the May month expiry was the most active put with an addition of 0.44 million open interest.

The maximum OI outstanding for Calls was at 6,200 SP (7.53 mn) and that for Puts was at 6,000 SP (8.36 mn).

The respective Support and Resistance levels are: Resistance 6209.45 -- Pivot Point 6177.8 -- Support 6155.65.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.44 for May-month contract.

The top five scrips with highest PCR on OI were Kotak Bank 2.22, Bharti Airtel 1.64, Ranbaxy 1.64, Siemens 1.54, and Axis Bank 1.39.

Among most active underlying, Unitech witnessed contraction of 0.08 million of Open Interest in the May month futures contract followed by Jaiprakash Associates which witnessed an addition of 1.64 million of Open Interest in the near month contract. Meanwhile, R com witnessed contraction of 0.08 million in the May month futures. Also, Reliance Power witnessed an addition of 2.08 million in Open Interest in the May month contract. Finally, GMR Infrastructure witnessed an addition of 2.38 million of Open Interest in the near month futures contract.