Nifty ends higher amid firm global cues

CNX Nifty ended higher on Tuesday on the back of firm global cues and recovering China’s shares, which plunged to their lowest level since 2009, following an assurance from its central bank to ease liquidity. Further, gains in European markets also aided to investor sentiments remaining upbeat. On global front, Asian markets made a mixed closing, while, European markets opened higher on Tuesday.

Back home, Indian equity benchmark made a cautious start, but soon recovered and entered into positive territory as investors opted to buy beaten down fundamentally strong stocks. Sentiments also got some support from Reserve Bank of India (RBI) Deputy Governor Anand Sinha’s statement that that the government and the RBI are taking all possible steps to revive the macro-economic indicators like high inflation and current account deficit (CAD) and low economy’s growth. Further, buying witnessed in realty and infra stocks also helped the up-move as the Reserve Bank of India (RBI) has eased external commercial borrowings (ECBs) norms for low cost builders. Market continued positive start on account of buying in frontline blue chip counters and taking cues from European counterparts. However, in the last leg of trade, market erased some early gains amid profit booking in banking and service stocks. Finally, Nifty ended the session with a gain of 18 points.

Meanwhile, the sectoral indices on the NSE made a mixed closing. CNX Energy up by 0.82%, CNX FMCG up by 0.51%, CNX Infra up by 0.48%, CNX Realty up by 0.44%, and CNX PSE up by 0.42% remained the top gainers in the trade. While, CNX PSU Bank down 1.49%, CNX Media down 1.39%, CNX IT down 0.64% and CNX Pharma down 0.57% remained the losers in the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 0.62% and reached 21.14.

The India VIX witnessed an addition of 0.62% at 21.14 as compared to its previous close of at 21.01 on Monday. The 50-share CNX Nifty gained 18.85 points or 0.34% to settle at 5,609.10.

Nifty June 2013 futures closed at 5608.30 on Tuesday at a discount of 0.80 points over spot closing of 5,609.10, while Nifty July 2013 futures ended at 5619.15 at a premium of 10.05 points over spot closing. Nifty June futures saw contraction of 1.61 million (mn) units taking the total outstanding open interest (OI) to 19.13 mn units. The near month June 2013 derivatives contract will expire on June 27, 2013.

From the most active contracts, JP Associates June 2013 futures were trading at a discount of 0.20 points at 51.30 compared with spot closing of 51.50. The number of contracts traded was 21,528.

Reliance Communications June 2013 futures were at a discount of 0.20 points at 117.35 compared with spot closing of 117.55. The number of contracts traded was 26,700. 

Tata Motors June 2013 futures were at a discount of 0.80 points at 280.60 compared with spot closing of 281.40. The number of contracts traded was 20,038. 

Reliance Industries June 2013 futures were trading at a premium of 2.15 points at 804.30 compared with spot closing of 802.15. The number of contracts traded was 26,385.

ICICI Bank June 2013 futures were trading at a premium of 2.70 points at 1033.60 compared with spot closing of 1030.90. The number of contracts traded was 23,187.

Among Nifty calls, 5,700 SP from the June month expiry was the most active call with contraction of 0.50 million open interest.

Among Nifty puts, 5,600 SP from the June month expiry was the most active put with an addition of 0.16 million open interest.

The maximum OI outstanding for Calls was at 5,700 SP (8.93 mn) and that for Puts was at 5,600 SP (7.16 mn).

The respective Support and Resistance levels are: Resistance 5660.15 -- Pivot Point 5615.2 -- Support 5564.15.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.78 for June -month contract.

The top five scrips with highest PCR on OI were Bharti Airtel 1.57, Ambuja Cement 1.35, Bajaj-Auto 1.26, Dabur 1.16 and CESC 1.09.

Among most active underlying, JP Associates witnessed contraction of 12.15 million of Open Interest in the June month futures contract followed by Unitech which witnessed contraction of 9.91 million of Open Interest in the near month contract. Meanwhile, Reliance Communications witnessed contraction of 7.80 million in the June month futures. Also, RPower witnessed contraction of 2.09 million in Open Interest in the June month contract. Finally, DLF witnessed contraction of 1.63 million of Open Interest in the near month futures contract.