Nifty ends above 5,800 level even as RBI leaves rates unchanged

CNX Nifty ended higher for the second consecutive session on Monday led by gains in auto and infra stocks. Further, market rebounded sharply in afternoon session despite disappointment from the Reserve Bank's policy announcement, which left key policy rates unchanged citing elevated food inflation, rupee depreciation and uncertainty over foreign fund inflows. On the global front, Asian markets made a positive closing with Japanese Nikkei ending the session with a gain of over 2.70 per cent. Meanwhile, European markets opened higher on Monday. 

Back home, Indian equity benchmark made a flat start, but soon fell into the negative territory as investor sentiments were turned down after the Reserve Bank of India (RBI) maintained a status quo at its policy meet and left the interest rates unchanged. Further, India’s May trade deficit widened to $20.1 billion from $17.8 billion in April also dented the sentiments. However, in the second half, market pared its losses and entered into positive territory, on account of buying in frontline blue chip counters and taking cues from European counterparts. Investors were seen piling up position in auto, infra, IT and finance stocks. Finally, Nifty ended the session near its intra-day high level with a gain of 41 points.  

Meanwhile, the sectoral indices on the NSE made a positive closing. CNX Auto up by 1.82%, CNX Infra up by 1.04%, CNX IT and Media both up by 0.83% remained the top gainers in the trade. While, CNX Metal down 0.09% remained the only loser in the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 0.93% and reached 18.18.

The India VIX witnessed contraction of 0.93% at 18.18 as compared to its previous close of at 18.35 on Friday. The 50-share CNX Nifty gained 41.65 points or 0.72% to settle at 5,850.05.

Nifty June 2013 futures closed at 5847.75 on Monday at a discount of 2.30 points over spot closing of 5850.05, while Nifty July 2013 futures ended at 5864.95, at a premium of 14.90 points over spot closing. Nifty June futures saw an addition of 1.40 million (mn) units taking the total outstanding open interest (OI) to 17.04 mn units. The near month June 2013 derivatives contract will expire on June 27, 2013.

From the most active contracts, Reliance Communications June 2013 futures were trading at a discount of 0.20 points at 110.95 compared with spot closing of 111.15. The number of contracts traded was 15,932.

Tata Motors June 2013 futures were at a premium of 0.95 points at 299.75 compared with spot closing of 298.80. The number of contracts traded was 14,581. 

DLF June 2013 futures were at a premium of 0.70 points at 190.25 compared with spot closing of 189.55. The number of contracts traded was 10,377. 

Reliance Industries June 2013 futures were trading at a premium of 1.25 points at 826.25 compared with spot closing of 825.00. The number of contracts traded was 15,793.

Yes Bank June 2013 futures were trading at a premium of 2.25 points at 486.25 compared with spot closing of 484.00. The number of contracts traded was 12,481.

Among Nifty calls, 6,000 SP from the June month expiry was the most active call with an addition of 0.21 million open interest.

Among Nifty puts, 5,700 SP from the June month expiry was the most active put with an addition of 0.35 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (7.78 mn) and that for Puts was at 5,700 SP (7.92 mn).

The respective Support and Resistance levels are: Resistance 5879.88 -- Pivot Point 5825.07 -- Support 5795.23.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.92 for June -month contract.

The top five scrips with highest PCR on OI were CESC 1.57, Dabur 1.21, Exide Ind 1.11, DR Reddy 1.11, and Bharti Airtel 1.02.

Among most active underlying, Unitech witnessed contraction of 1.51 million of Open Interest in the June month futures contract followed by JP Associates which witnessed  an addition of 0.35 million of Open Interest in the near month contract. Meanwhile, Reliance Communications witnessed an addition of 1.68 million in the June month futures. Also, R Power witnessed contraction of 0.19 million in Open Interest in the June month contract. Finally, Hindalco Industries witnessed contraction of 0.60 million of Open Interest in the near month futures contract.