Nifty ends above crucial 6,100 level on firm global cues

CNX Nifty ended higher for the third consecutive day on Tuesday led by gains in auto, energy and PSE stocks. Positive cues from global markets also provided the required support to the market. Further, increased capital inflows into blue chips, led by Hero Moto Corp, Reliance Industries and Coal India, further boosted the trading sentiment. On the global front, Asian markets ended in green, while, European markets also made a positive opening on Tuesday.

Back home, Indian equity benchmark made a positive start with inching toward its crucial 6,100 level buoyed by firm global cues. Investors’ sentiments got some support from Finance Minister P Chidambaram’s statement that India’s economy will continue to grow at 5-6 per cent regardless of government’s efforts, but with effective governance, growth can rise to over 8 per cent. Sentiments also remained upbeat after Coal India reported better than expected fourth quarter numbers with 34.89% rise in net profit on consolidated basis. However, in the late morning session, market pared all early gains and slipped into the negative territory on account of profit booking. In the second half, market changed its direction again and entered the positive territory, on the back of buying in front line blue chip counters and taking cues from European counterparts. Investors were seen piling up position in auto, energy and PSE stocks. Finally, Nifty ended the session with a gain of 28 points.  

Meanwhile, sectoral indices on the NSE made a positive closing. CNX Energy and PSE both up by 1.52%, CNX Auto up by 1.43%, CNX FMCG up by 0.76% and CNX Metal up by 0.73% remained the top gainers in the trade. While, CNX Pharma down 0.69%, PSU Bank down 0.24% and CNX Media down 0.23% remained the losers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 0.53% and reached 17.12.

The India VIX witnessed addition of 0.53% at 17.12 as compared to its previous close of at 17.03 on Monday.The 50-share CNX Nifty gained 28.10 points or 0.46% to settle at 6,111.25.

Nifty May 2013 futures closed at 6109.40 on Tuesday at a discount of 1.85 points over spot closing of 6111.25, while Nifty June 2013 futures ended at 6131.55, at a premium of 20.30 points over spot closing. Nifty May futures saw contraction of 3.70 million (mn) units taking the total outstanding open interest (OI) to 18.37 mn units. The near month May 2013 derivatives contract will expire on May 30, 2013.

From the most active contracts, BHEL May 2013 futures were trading at a discount of 0.35 points at 203.65 compared with spot closing of 204.00. The number of contracts traded was 17,211.

Tata Steel May 2013 futures were trading at a discount of 0.70 points at 322.10 compared with spot closing of 322.80. The number of contracts traded was 16,922.

Reliance Industries May 2013 futures were trading at a premium of 1.10 points at 844.15 compared with spot closing of 843.05. The number of contracts traded was 29,517.

ICICI Bank May 2013 futures were at a discount of 20.90 points at 1212.15 compared with spot closing of 1233.05. The number of contracts traded was 17,858. 

TCS May 2013 futures were at a premium of 1.50 points at 1516.40 compared with spot closing of 1514.90. The number of contracts traded was 21,514.

Among Nifty calls, 6,100 SP from the May month expiry was the most active call with contraction of 1.73 million open interest.

Among Nifty puts, 5,900 SP from the May month expiry was the most active put with an addition of 0.07 million open interest.

The maximum OI outstanding for Calls was at 6,100 SP (6.63 mn) and that for Puts was at 5,900 SP (7.34 mn).

The respective Support and Resistance levels are: Resistance 6140.80 -- Pivot Point 6098.10 -- Support 6068.55.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.39 for May-month contract.

The top five scrips with highest PCR on OI were Bharat Forge 2.03, Kotak Bank 1.53, Hero MotoCorp 1.43, HDFC 1.31 and Siemens 1.31.

Among most active underlying, Unitech witnessed contraction of 9.06 million of Open Interest in the May month futures contract followed by JP Associates which witnessed contraction of 15.24 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed contraction of 9.03 million in the May month futures. Also, IFCI witnessed contraction of 18.32 million in Open Interest in the May month contract. Finally, Reliance Power witnessed contraction of 5.84 million of Open Interest in the near month futures contract.