Nifty ends above crucial 5,800 level amid firm global cues

CNX Nifty snapped its two day losing streak and ended over a percent higher on Thursday amid firm global cues and buying witnessed in IT and FMCG stocks. On global front, most of the Asian equity indices ended in the green. Meanwhile, European markets too opened higher on Thursday. The US markets rebounded in previous session as sentiments improved after US jobless claims fell to 343,000 in the week ended June 29 from a revised 348,000 in the prior week.

Back home, Indian equity benchmark made a positive start with inching towards its crucial 5,800 level buoyed by firm global cues. The investor sentiments seemed buoyant after the gap up opening given the sell offs witnessed the day before enabling them to accumulate stocks for the run ahead. In the first half, market traded in positive territory as investors piled up position in IT and technology shares amid hopes of improvement in quarterly profits as rupee weakened. In the second half, despite the fall in the rupee value to over 60 per dollar, markets continued firm trade on account of buying in all major indices of the market except metals. Further, positive opening of the European counterparts too aided the sentiments. Finally, Nifty ended the session near its intra-day high with a gain of 66 points.   

Meanwhile, sectoral indices on the NSE made a positive closing. CNX FMCG up by 2.89%, CNX IT up by 2.82%, CNX Realty up by 1.24%, CNX Energy up by 0.83% and CNX Infra up by 0.78% remained the top gainers in the trade. While, CNX Metal down 0.16% remained the only loser in the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down 1.75% and reached 18.58.

Nifty July 2013 futures closed at 5840.10 on Thursday at a premium of 3.15 points over spot closing of 5,836.95, while Nifty August 2013 futures ended at 5863.25 at a premium of 26.30 points over spot closing. Nifty July futures saw addition of 0.21 million (mn) units taking the total outstanding open interest (OI) to 14.97 mn units. The near month July 2013 derivatives contract will expire on July 25, 2013.

From the most active contracts, SBI July 2013 futures last traded at a discount of 13.05 points at 1,899.95 compared with spot closing of 1,913.00. The number of contracts traded was 54,484.

Reliance July 2013 futures last traded at a premium of 5.70 points at 867.35 compared with spot closing of 861.65. The number of contracts traded was 26,032.

Reliance Capital July 2013 futures were at a premium of 4.35 points at 363.70 compared with spot closing of 359.35. The number of contracts traded was 25,195. 

Reliance Communication July 2013 futures were at a discount of 0.65 points at 133.45 compared with spot closing of 134.10. The number of contracts traded was 22,537. 

Hindustan Unilever July 2013 futures last traded at a discount of 0.10 points at 601.50 compared with spot closing of 601.40. The number of contracts traded was 21,903.

Among Nifty calls, 6,100 SP from the July month expiry was the most active call with an addition of 1.04 million open interest.

Among Nifty puts, 5,600 SP from the July month expiry was the most active put with an addition of 0.73 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (6.12 mn) and that for Puts was at 5,600 SP (7.43 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5861.42-- Pivot Point 5823.73-- Support--5799.27. The Nifty Put Call Ratio (PCR) OI wise stood at 1.27 for July-month contract. The top five scrips with highest PCR on OI were Sesa Goa 2.76, MC Dowell-N 1.71, Divi’s Lab-1.50, GAIL 1.40, and Jubilant Food 1.33.

Among most active underlying, SBI witnessed an addition of 0.14 million of Open Interest in the July month futures contract followed by RCom which witnessed an addition of 1.32 million of Open Interest in the near month contract, Hindustan Unilever witnessed a contraction of 0.39 million in the July month futures. Also, Reliance Capital witnessed an addition of 1.1 million in Open Interest in the July month contract and Reliance Industries witnessed addition of 0.30 million of Open Interest in the near month futures contract.