Nifty ends higher; Energy, FMCG stocks lead

CNX Nifty ended higher for the second straight day on Friday amid buying in Energy and FMCG stocks, while buying by foreign institutional investors (FIIs) also supported the investors’ sentiments as they bought shares worth a net Rs 164.56 crore on July 4, 2013. On global front, Asian markets ended in green, while, European markets made a negative start in the early deals on Friday.

Back home, Nifty made a gap up opening buoyed by firm global cues as the sentiments remained upbeat after the two most important central banks in Europe surprised investors by assuring that they were in no hurry to wind down stimulus. In the first half, Nifty continued to trade firm as investors’ sentiments were buoyed by FII buying in local shares. Investors also piled up positions in energy stocks on hopes that recent government moves like the diesel and the gas price hikes will benefit the domestic economy in the long term. Later in the second half, the market paired some of its early gains as investors’ booked profit at higher levels amid concerns that the US Fed may tone down its monetary stimulus measures if the jobs data, due for release later today, is better-than-expected. Further, negative start of the European markets too turned down the sentiments. However, selling witnessed in media, IT and infra stocks were offset by the buying in energy and FMCG stocks, which led the market to end the session with a gain of 30 points.    

Meanwhile, sectoral indices on the NSE made a mixed closing. CNX Energy up by 1.24%, CNX FMCG up by 0.84%, CNX PSE up by 0.62%, CNX MNC up by 0.58% and CNX Metal up by 0.47% remained the top gainers in the trade. While, CNX Media down 0.59%, CNX IT down 0.43% and CNX Infra down 0.08% remained the losers in the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 0.48% and reached 18.67.

Nifty July 2013 futures closed at 5874.95 on Friday at a premium of 7.05 points over spot closing of 5,867.90, while Nifty August 2013 futures ended at 5898.20 at a premium of 30.30 points over spot closing. Nifty July futures saw addition of 0.68 million (mn) units taking the total outstanding open interest (OI) to 15.64 mn units. The near month July 2013 derivatives contract will expire on July 25, 2013.

From the most active contracts, Reliance Inds July 2013 futures last traded at a discount of 3.45 points at 883.80 compared with spot closing of 880.35. The number of contracts traded was 21,529.

Hindustan Unilever July 2013 futures last traded at a discount of 2.20 points at 607.15 compared with spot closing of 609.35. The number of contracts traded was 21,446.

Reliance Capital July 2013 futures were at a premium of 1.30 points at 362.40 compared with spot closing of 361.10. The number of contracts traded was 14,793. 

Reliance Communication July 2013 futures were at a discount of 0.60 points at 135.10 compared with spot closing of 135.70. The number of contracts traded was 14,676. 

ICICI Bank July 2013 futures last traded at a premium of 6.15 points at 1057.70 compared with spot closing of 1051.55. The number of contracts traded was 14,025.

Among Nifty calls, 6,000 SP from the July month expiry was the most active call with an addition of 0.96 million open interest.

Among Nifty puts, 5,600 SP from the July month expiry was the most active put with an addition of 1.10 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (7.00 mn) and that for Puts was at 5,600 SP (8.48 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5892.75-- Pivot Point 5875.60 -- Support-- 5850.75. The Nifty Put Call Ratio (PCR) OI wise stood at 1.39 for July-month contract. The top five scrips with highest PCR on OI were Sesa Goa 2.87, Divi’s Lab-1.50, MC Dowell-N 1.41, GAIL 1.34, and Jubilant Food 1.32.

Among most active underlying, SBI witnessed an addition of 0.13 million of Open Interest in the July month futures contract followed by Hindustan Unilever which witnessed a contraction of 0.44 million of Open Interest in the near month contract, Reliance Capital witnessed an addition of 0.10 million in the July month futures. Also, Reliance Communication witnessed an addition of 1.6 million in Open Interest in the July month contract and ICICI Bank witnessed addition of 0.60 million of Open Interest in the near month futures contract.