Nifty ends tad higher amid volatility

CNX Nifty ended the volatile session on a positive note amid buying in IT and media stocks. Though, global investor sentiments remained edgy after Federal Reserve Chairman Ben Bernanke hinted towards tapering off the bond-buying programme sooner-than-expected once US economy shows sustainable signs of recovery. Most Asian markets ended lower, while, European markets made a positive opening on Friday.

Back home, Indian equity benchmark, made a negative start amid weak global cues as the US markets ended lower in the previous session. However, in the late morning session, market pared its early losses and entered into positive territory as investors opted to pile up positions in beaten down fundamentally strong stocks. Market continued its positive trade on the back of buying in power stocks after the government approved the coal price pass-through mechanism, under which the entire additional cost of imports would be passed on to the consumers. However, the market’s gain remain capped as buying witnessed in IT, media and energy stocks were offset by selling in banking and realty stocks, which led the market to close near the neutral line with a marginal gain of 11 points. 

Meanwhile, the sectoral indices on the NSE made a mixed closing. CNX IT up by 1.46%, CNX Media up by 0.89%, CNX PSE up by 0.62% and CNX Energy up by 0.45% remained the top gainers in the trade. While, CNX PSU Bank down 1.96%, CNX Metal up by 1.31%, CNX Realty down 1.27% and CNX FMCG down 0.30% remained the losers in the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 0.83% and reached 19.03.

The India VIX witnessed contraction of 0.83% at 19.03 as compared to its previous close of at 19.19 on Thursday. The 50-share CNX Nifty gained 11.75 points or 0.21% to settle at 5,667.65.

Nifty June 2013 futures closed at 5661.85 on Friday at a discount of 5.8 points over spot closing of 5,667.65, while Nifty July 2013 futures ended at 5678.65 at a premium of 11.00 points over spot closing. Nifty June futures saw contraction of 0.27 million (mn) units taking the total outstanding open interest (OI) to 21.25 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 2.55 points at 117.4 compared with spot closing of 119.95. The number of contracts traded was 28,039.

DLF June 2013 futures were at a premium of 0.05 points at 175.5 compared with spot closing of 175.45. The number of contracts traded was 15,400. 

The Karnataka Bank June 2013 futures were at a discount of 4.00 points at 112.9 compared with spot closing of 116.90. The number of contracts traded was 17,278. 

Reliance Industries June 2013 futures were trading at a premium of 1.95 points at 794.75 compared with spot closing of 792.80. The number of contracts traded was 25,307.

Jindal Steel & Power June 2013 futures were trading at a premium of 0.7 points at 205.35 compared with spot closing of 204.65. The number of contracts traded was 21,022.

Among Nifty calls, 5,800 SP from the June month expiry was the most active call with an addition of 0.99 million open interest.

Among Nifty puts, 5,600 SP from the June month expiry was the most active put with an addition of 1.63 million open interest.

The maximum OI outstanding for Calls was at 5,800 SP (9.47 mn) and that for Puts was at 5,600 SP (9.10 mn).

The respective Support and Resistance levels are: Resistance 5696.92 -- Pivot Point 5656.88 -- Support 5627.62.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.81 for June -month contract.

The top five scrips with highest PCR on OI were Dabur 1.19, Ambuja Cement 1.17, Bajaj-Auto 1.11, Exide Ind 0.98, and Federal Bank 0.93.

Among most active underlying, Unitech witnessed contraction of 3.28 million of Open Interest in the June month futures contract followed by JP Associates which witnessed contraction of 2.61 million of Open Interest in the near month contract. Meanwhile, Reliance Communications witnessed contraction of 4.21 million in the June month futures. Also, IFCI witnessed an addition of 0.93 million in Open Interest in the June month contract. Finally, RPower witnessed contraction of 4.40 million of Open Interest in the near month futures contract.