Nifty ends higher; realty, banking shares rise

CNX Nifty ended higher for the third straight session on Monday amid firm global cues and buying witnessed in heavyweights. The investors’ sentiments also got a boost after foreign investors bought shares worth Rs 11.24 billion in the previous session, ending a 13-day selling streak. On global front, Asian markets ended mostly in the red. Meanwhile, European counterparts opened higher in the early deals on Monday.

Back home, Indian equity benchmarks made a negative start, but soon recovered and entered into positive territory as sentiments got some support after Prime Minister Manmohan Singh stated that the government has set an investment target of Rs 1.15 lakh crore for PPP (public private partnership) infrastructure projects in rail, port and power in the next six months. Market continued its positive trade despite weak factory activities in June as the HSBC Purchasing Managers’ Index (PM) recorded above the no-change threshold for the fifty-first consecutive month in June, by coming at 50.3, slightly higher from 50.1 in May. Further, markets extended gains and continued positive trade till the end of session on account of broad based buying witnessed in the markets and apart from the blue chips. Investors were seen piling up position in all major indices of the market except IT. Finally, Nifty ended the session near its intra-day high level with the gain of 56 points. 

Meanwhile, the sectoral indices on the NSE made a positive closing. CNX Realty up by 5.51%, CNX PSU Bank up by 3.43%, CNX Media up by 3.15%, CNX Infra up by 3.05% and CNX Auto up by 2.00% remained the top gainers in the trade. While, CNX IT down 1.62% remained the only gainer in the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 0.78% and reached 18.09.

The India VIX witnessed an addition of 0.78% at 18.09 as compared to its previous close of at 17.95 on Friday. The 50-share CNX Nifty gained 56.65 points or 0.97% to settle at 5,898.85.

Nifty July 2013 futures closed at 5892.20 on Monday at a discount of 6.65 points over spot closing of 5898.85, while Nifty August 2013 futures ended at 5915.00 at a premium of 16.15 points over spot closing. Nifty July futures saw an addition of 0.92 million (mn) units taking the total outstanding open interest (OI) to 15.25 mn units. The near month July 2013 derivatives contract will expire on July 25, 2013.

From the most active contracts, Reliance Communications July 2013 futures were trading at a discount of 0.75 points at 132.20 compared with spot closing of 132.95. The number of contracts traded was 29,666.

Tata Motors July 2013 futures were trading at a premium of 1.25 points at 290.05 compared with spot closing of 288.80. The number of contracts traded was 10,349.

DLF July 2013 futures were at a premium of 0.60 points at 189.70 compared with spot closing of 189.10. The number of contracts traded was 13,170. 

Reliance Capital July 2013 futures were at a premium of 2.40 points at 363.10 compared with spot closing of 360.70. The number of contracts traded was 11,956. 

United Spirits July 2013 futures were trading at a premium of 0.90 points at 2470.90 compared with spot closing of 2470.00. The number of contracts traded was 44,418. Among Nifty calls, 6,000 SP from the July month expiry was the most active call with an addition of 0.86 million open interest.

Among Nifty puts, 5,600 SP from the July month expiry was the most active put with an addition of 0.66 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (5.12 mn) and that for Puts was at 5,600 SP (6.66 mn).

The respective Support and Resistance levels are: Resistance 5928.07 -- Pivot Point 5875.13 -- Support 5845.92.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.32 for July -month contract. The top five scrips with highest PCR on OI were Sesa Goa 3.10, CESC 3.00, Syndicate Bank 1.82, MC Dowell-N 1.5 and GAIL 1.52.

Among most active underlying, IFCI witnessed contraction of 3.04 million of Open Interest in the July month futures contract followed by Unitech which witnessed contraction of 2.32 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed contraction of 1.04 million in the July month futures. Also, RCom witnessed an addition of 5.96 million in Open Interest in the July month contract. Finally, R Power witnessed an addition of 0.18 million of Open Interest in the near month futures contract.