Nifty ends above crucial 5,900 level on Fed's stance, rupee gains

CNX Nifty closed over 2 percent higher on Thursday amid firm global cues and buying witnessed in banking and realty stocks as US Fed's comments raised hopes that the US monetary stimulus would not end as early as feared. Further, gain in rupee value against dollar also provided support to the investors’ sentiments. On the global front, Asian market closed higher, while, European markets also made a positive opening in their early deals on Thursday.  

Back home, Nifty made a gap-up opening buoyed by firm global cues as the investors’ sentiments remained up-beat after Federal Reserve signaled that the US central bank may not be as close to winding down its stimulus programme as investors had started to believe. In the first half, Nifty traded in the positive territory and investors were seen piling up position in metal, realty, services and banking stocks. Sentiments also got support from Foreign Institutional Investors (FIIs), who turned buyers on Indian equities over the previous two sessions. Market continued its positive trade in the second half on account of buying in front line blue chip counters and taking cues from European counterparts. Buying was witnessed in all major indices of the market except media. Finally, Nifty ended the session with a massive gain of 118 points.   

Meanwhile, sectoral indices on the NSE made a positive closing. CNX Realty up by 2.78%, CNX Metal up by 2.58%, CNX Finance up by 2.55%, CNX Service up by 2.26% and CNX Infra up by 2.11% remained the top gainers in the trade. While, CNX Media down by 0.28% remained the only loser in the trade.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down 5.46% and reached 18.89.

The India VIX witnessed contraction of 5.46% at 18.89 as compared to its previous close of 19.98 on Tuesday. The 50-share CNX Nifty gained 118.40 points or 2.04% to settle at 5,935.10.

Nifty July 2013 futures closed at 5941.35 on Thursday at a premium of 6.25 points over spot closing of 5,935.10, while Nifty August 2013 futures ended at 5963.40 with a premium of 28.30 points over spot closing. Nifty July futures saw an addition of 1.35 million (mn) units taking the total outstanding open interest (OI) to 16.81 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 last traded at a premium of 0.25 points at 142.05 compared to spot closing of 141.80. The number of contracts traded was 11,365.

Tata Motors July 2013 futures last traded at a premium of 2.50 points at 285.70 compared with spot closing of 283.20. The number of contracts traded was 9,843.

Tata Steel July 2013 futures were at a discount of 6.65 points at 254.15 compared with spot closing of 260.80. The number of contracts traded was 12,644. 

HDFC Bank July 2013 futures were at a premium of 3.05 points at 683.00 compared with spot closing of 679.95. The number of contracts traded was 10,298. 

Reliance Capital July 2013 futures last traded at a premium of 2.60 points at 380.40 compared with spot closing of 377.80. The number of contracts traded was 12,158.Among Nifty calls, 6,000 SP from the July month expiry was the most active call with contraction of 1.10 million open interest.

Among Nifty puts, 5,800 SP from the July month expiry was the most active put with an addition of 0.12 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (6.94 mn) and that for Puts was at 5,800 SP (7.34 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5872.02 -- Pivot Point 5910.43 -- Support-- 5926.37.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.50 for July-month contract. The top five scrips with highest PCR on OI were Sesa Goa 2.34, Ultra Cements 1.84, Jubl Food 1.49, Kotak Bank 1.48, and Ambuja Cement 1.39.

Among most active underlying, Unitech witnessed contraction of 0.86 million of Open Interest in the July month futures contract followed by IFCI which witnessed a contraction of 2.27 million of Open Interest in the near month contract, Jaiprakash Associates witnessed contraction of 0.64 million in the July month futures. Also, Reliance Communication witnessed contraction of 1.32 million in Open Interest in the July month contract and Reliance Power witnessed contraction of 0.16 million of Open Interest in the near month futures contract.