Nifty ends above crucial 6,000 level; RIL lead gains

CNX Nifty rose over one and a half percent on Monday to mark its second consecutive session of gains led by index heavyweight Reliance Industries after the company and its partners announced a significant gas and condensate discovery in the KG D6 block. On the global front, Asian markets ended mixed, while, European markets made a positive opening in the early deals on Monday. 

Back home, after making cautious start, Indian equity benchmark recovered soon as sentiments got some support from Prime Minister Manmohan Singh’s statement that government is trying to remove investment bottlenecks, which is holding up the growth. He further added that India’s economic growth would accelerate to 6-6.5 percent in the FY14. Investors’ sentiments also got some support from Reliance Industries, which rose reacting to a huge gas discovery in KG basin. Market continued its positive trade till the end on account of buying in front line blue chip counters. Positive cues from European markets also provided the required support to the market. Buying was witnessed in all major indices of the market. Finally, Nifty ended the session with a massive gain of 99 points.   

Meanwhile, sectoral indices on the NSE made a positive closing. CNX Energy up by 2.82%, CNX Realty up by 1.86%, CNX Metal up by 1.81% and CNX Infra up by 1.72% remained the top gainers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 3.79% and reached 17.03.

The India VIX witnessed contraction of 3.79% at 17.03 as compared to its previous close of at 17.70 on Friday. The 50-share CNX Nifty gained 99.60 points or 1.66 % to settle at 6,083.15.

Nifty May 2013 futures closed at 6083.45 on Monday at a premium of 0.30 points over spot closing of 6083.15, while Nifty June 2013 futures ended at 6102.75, at a premium of 19.60 points over spot closing. Nifty May futures saw contraction of 2.12 million (mn) units taking the total outstanding open interest (OI) to 22.07 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 0.20 points at 114.35 compared with spot closing of 114.15. The number of contracts traded was 14,149.

DLF May 2013 futures were trading at a premium of 0.85 points at 215.65 compared with spot closing of 214.80. The number of contracts traded was 13,624.

Reliance Industries May 2013 futures were trading at a premium of 3.80 points at 830.50 compared with spot closing of 826.70. The number of contracts traded was 29,564.

ICICI Bank May 2013 futures were at a discount of 13.20 points at 1203.00 compared with spot closing of 1216.20. The number of contracts traded was 14,079. 

TCS May 2013 futures were at a premium of 7.75 points at 1498.30 compared with spot closing of 1490.55. The number of contracts traded was 13,422.

Among Nifty calls, 6,100 SP from the May month expiry was the most active call with an addition of 0.44million open interest.

Among Nifty puts, 6,000 SP from the May month expiry was the most active put with an addition of 1.98 million open interest.

The maximum OI outstanding for Calls was at 6,100 SP (8.36 mn) and that for Puts was at 6,000 SP (7.94mn).

The respective Support and Resistance levels are: Resistance 6130.18 -- Pivot Point 6052.87 -- Support 6005.83.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.27 for May-month contract.

The top five scrips with highest PCR on OI were Bharat Forg 1.85, Kotak Bank 1.73, HDFC 1.50, Indus Ind BK 1.39 and Siemens 1.35.

Among most active underlying, Unitech witnessed contraction of 4.92 million of Open Interest in the May month futures contract followed by Jaiprakash Associates which witnessed contraction of 4.56 million of Open Interest in the near month contract. Meanwhile, R com witnessed contraction of 5.54 million in the May month futures. Also, R Power witnessed contraction of 5.76 million in Open Interest in the May month contract. Finally, DLF witnessed contraction of 1.65 million of Open Interest in the near month futures contract.