Nifty ends over 6000 level propelled by Infosys numbers

Nifty continued its jubilant run and ended past 6000 mark on Friday, propelled by the positive earnings season start with a better than expected numbers of the IT major Infosys. The index remained firm since start with an opening above 6000 mark, there was some profit booking but the index remained in a range of 50 points throughout the day and finally spurted in final hours to close near the day’s high. There was a sudden gain in the market after the announcement of the trade data, India’s trade deficit narrowed in June to $12.24 billion from a 7-month high, helped by a slowdown in gold imports. The overall Exports fell 4.57% from a year earlier to $23.79 billion, their second straight monthly fall. Traders also took cues from the recovery in rupee after the trade data, as it will lessen the pressure on CAD.

Most of the sectoral indices on the NSE made a positive closing. CNX IT surged by 6.62%, CNX Services gained 2.18%, CNX Infra added 1.69%, CNX Pharma was up by 1.08% and CNX Energy ended higher by 0.91%. While, CNX Realty declined by 0.54%, CNX PSU Bank was down by 0.52%, CNX FMCG lost 0.44% and CNX PSE was lower by 0.13%.

India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined by 1.05% and reached 18.69.

The India VIX witnessed contraction of 1.06% at 18.69 as compared to its previous close of 18.89 on Thursday. The 50-share CNX Nifty gained 73.90 points or 1.25% to settle at 6,009.00.

Nifty July 2013 futures closed at 6007.25 on Friday at a discount of 1.75 points over spot closing of 6,009.00, while Nifty August 2013 futures ended at 6028.90 at a premium of 19.90 points over spot closing. Nifty July futures saw an addition of 0.84 million (mn) units taking the total outstanding open interest (OI) to 17.66 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 traded flat compared to spot closing of 144.00. The number of contracts traded was 10,615.

Tata Motors July 2013 futures last traded at a premium of 0.75 points at 292.85 compared with spot closing of 292.10. The number of contracts traded was 11,938.

TCS July 2013 futures were at a discount of 8.40 points at 1601.60 compared with spot closing of 1610.00. The number of contracts traded was 11,255. 

Reliance Capital July 2013 futures were at a premium of 1.15 points at 383.55 compared with spot closing of 382.40. The number of contracts traded was 13,681. 

Reliance Industries July 2013 futures last traded at a discount of 3.35 points at 891.65 compared with spot closing of 895.00. The number of contracts traded was 21,993. Among Nifty calls, 6,000 SP from the July month expiry was the most active call with contraction of 1.00 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 (5.94 mn) and that for Puts was at 5,600 SP (8.62 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6034.95 -- Pivot Point 5993.05 -- Support-- 5967.1.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.71 for July-month contract. The top five scrips with highest PCR on OI were Sesa Goa 2.30, Ultra Cements 1.56, HUL 1.45, Jubl Food 1.40, and Ambuja Cement 1.38.

Among most active underlying, Unitech witnessed an addition of 1.06 million of Open Interest in the July month futures contract followed by Jaiprakash Associates which witnessed an addition of 2.64 million of Open Interest in the near month contract, IFCI witnessed contraction of 0.44 million in the July month futures. Also, Reliance Communication witnessed an addition of 0.90 million in Open Interest in the July month contract and Reliance Power witnessed an addition  of 1.47 million of Open Interest in the near month futures contract.