Nifty ends higher as rupee recovers

CNX Nifty ended higher on Tuesday as a recovery in the rupee from a record low in the previous session boosted the investors’ sentiments. Today, rupee recovered to a level of around 60 per dollar from a record low of over 61.20 in the previous session after regulators restricted speculative trading in currency derivatives. The Reserve Bank of India (RBI) banned banks from proprietary trading in domestic currency futures and options, while the Securities and Exchange Board of India (SEBI) doubled the margin requirement on domestic dollar-rupee forward trade. Further, sentiments also got support from the firm trend witnessed in the global markets. Asian markets made a positive opening. Meanwhile, European markets also opened higher on Tuesday.

Back home, Indian equity benchmark made a positive start amid firm global cues as the US market closed higher in the previous session. In the first half, after opening strong, market traded flat albeit in green. Sentiments got support after the rupee strengthened against the US dollar because of the resolve shown by the regulators and policy makers to arrest the rupee’s fall. In the second half, market extended gains and continued firm trade till the end of session on account of buying in frontline blue chip counters and taking cues from the European counterparts. Buying witnessed in all major indices of the market. Finally, Nifty ended the session near its intra-day high level with a gain of 47 points.

Meanwhile, sectoral indices on the NSE made a positive closing. CNX Realty up by 1.92%, CNX PSU Bank up by 1.88%, CNX Pharma up by 1.69%, CNX Infra up by 1.35% and CNX Media up by 1.12% remained the top gainers in the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down 0.10% and reached 19.32.

The India VIX witnessed contraction of 0.10% at 19.32 as compared to its previous close of at 19.34 on Monday. The 50-share CNX Nifty gained 47.45 points or 0.82% to settle at 5,859.00.

Nifty July 2013 futures closed at 5868.35 on Tuesday at a premium of 9.35 points over spot closing of 5,859.00, while Nifty August 2013 futures ended at 5890.65 at a premium of 31.65 points over spot closing. Nifty July futures saw an addition of 0.53 million (mn) units taking the total outstanding open interest (OI) to 15.38 mn units. The near month July 2013 derivatives contract will expire on July 25, 2013.

From the most active contracts, RCOM July 2013 futures last traded at a premium of 0.15 points at 142.15 compared spot closing of 142.00. The number of contracts traded was 14,281.

Reliance Power July 2013 futures last traded at a premium of 0.45 points at 76.1 compared with spot closing of 75.65. The number of contracts traded was 14,090.

Tata Motors July 2013 futures were at a discount of 0.20 points at 289.2 compared with spot closing of 289.40. The number of contracts traded was 9,494. 

Karnataka Bank July 2013 futures were at a premium of 0.45 points at 115.4 compared with spot closing of 114.95. The number of contracts traded was 10,794. 

Reliance Capital July 2013 futures last traded at a premium of 1.55 points at 382.55 compared with spot closing of 381.00. The number of contracts traded was 19,310.Among Nifty calls, 6,000 SP from the July month expiry was the most active call with an addition of 0.60 million open interest.

Among Nifty puts, 5,600 SP from the July month expiry was the most active put with an addition of 0.34 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (7.46 mn) and that for Puts was at 5,600 SP (8.36 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5871.1 -- Pivot Point 5852.85 -- Support-- 5840.75.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.38 for July-month contract. The top five scrips with highest PCR on OI were Sesa Goa 2.62, Ultra Cement 1.64, Ambuja Cement 1.41, Jubl Food 1.34 and HUL-1.31.

Among most active underlying, Unitech witnessed an addition of 5.55 million of Open Interest in the July month futures contract followed by IFCI which witnessed a contraction of 0.71 million of Open Interest in the near month contract, Jaiprakash Associates witnessed an addition of 0.06 million in the July month futures. Also, Reliance Communication witnessed contraction of 1.88 million in Open Interest in the July month contract and Reliance Power witnessed addition of 0.90 million of Open Interest in the near month futures contract.