Nifty snaps May F&O series with a gain of 3.5 percent

CNX Nifty made a remarkable closing of the May F&O series with a gain of 207 points or 3.5%. Market witnessed a pulled back in the last half an hour of trade to end above 6,100 level led by gains in auto and FMCG stocks. On the global front, risk appetite remained frail amid looming fear over a pull-back of stimulus by the US Federal Reserve earlier than expected with all Asian equity indices shutting shop in red. Meanwhile, European markets also made a negative start on Thursday.

Back home, Indian equity benchmark made a negative start amid weak global cues as the US markets ended lower overnight. In the first half, market traded in red as investors’ sentiments were weighed down after the Organization for Economic Cooperation and Development (OECD) slashed its growth forecast for India to 5.3% in 2013 as against its earlier forecast of 5.9%. Investors also remained cautious ahead of release of GDP data for the January-March 2013 quarter due on May 31. Further, weak global cues also turned down the sentiments. However, in the last leg of trade, market pared its losses and entered the positive territory on the back of hefty short covering ahead of the series expiry, which supported the market to close above the 6,100 level. 

Meanwhile, most sectoral indices on the NSE made a negative closing. CNX Auto up by 2.17%, CNX FMCG up by 1.92% and CNX PSE up by 0.18% remained the top gainers in the trade. While, CNX Realty down 2.61%, CNX Metal down 1.13%, CNX Pharma down 0.60%, CNX Energy down 0.49% and CNX Media down 0.37% remained the top losers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 10.19% and reached 16.04.

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The India VIX witnessed contraction of 10.19 % at 16.04 as compared to its previous close of at 17.86 on Wednesday. The 50-share CNX Nifty gained 19.75 points or 0.32% to settle at 6,124.05.

Nifty June 2013 futures closed at 6131.25 on Thursday at a premium of 7.20 points over spot closing of 6124.05, while Nifty July 2013 futures ended at 6138.65, at a premium of 14.60 points over spot closing. Nifty June futures saw addition of 4.48 million (mn) units taking the total outstanding open interest (OI) to 17.59 mn units. The near month June 2013 derivatives contract will expire on June 27, 2013.

From the most active contracts, Tata Motors June 2013 futures were trading at a premium of 3.05 points at 318.05 compared with spot closing of 315.00. The number of contracts traded was 20,974.

Reliance Industries June 2013 futures were trading at a premium of 9.60 points at 842.60 compared with spot closing of 833.00. The number of contracts traded was 16,929.

United Spirit June 2013 futures were trading at a premium of 23.45 points at 2463.45 compared with spot closing of 2440.00. The number of contracts traded was 17,175.

SBI June 2013 futures were at a premium of 12.15 points at 2098.65 compared with spot closing of 2086.50. The number of contracts traded was 23,614. 

Among Nifty calls, 6,300 SP from the June month expiry was the most active call with an addition of 0.94 million open interest.

Among Nifty puts, 6,000 SP from the June month expiry was the most active put with an addition of 1.40 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (3.27 mn) and that for Puts was at 6,000 SP (5.04 mn).

The respective Support and Resistance levels are: Resistance 6147.82-- Pivot Point 6109.98-- Support 6086.22.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.24 for June -month contract.

The top five scrips with highest PCR on OI were Finan Tech 2.00, Grasim 1.80, Hero MotoCorp 1.44, PTC 1.33 and Sesa Goa 1.20.

Among most active underlying, Unitech witnessed contraction of 19.72 million of Open Interest in the June month futures contract followed by JP Associates which witnessed contraction of 8.72 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed contraction of 6.65 million in the June month futures. Also, Reliance Power witnessed an addition of 13.58 million in Open Interest in the June month contract. Finally, DLF witnessed contraction of 3.07million of Open Interest in the near month futures contract.