Nifty snaps the consolidation mood with gain of about a percent

Nifty showed a jubilant performance on Tuesday, recovering from its two days of consolidation.The index remained in upbeat mood since morning taking cues from the global markets after the weak housing data in the US eased concerns that the Fed won’t taper its monetary easing soon. Back home there was some concern in the gold stocks after the RBI in its further efforts, imposed restrictions on gold imports by banks and other authorised agencies, however they rebounded from the lows of the day and some even posted handsome gains on hopes that the move by the RBI to withdraw restriction on import of gold on consignment basis and against letters of credit is a positive for them. The major support came to the index from the banking pivotal as most of the banks ended with decent gains taking cues from the Finance Minister P Chidambaram statement that RBI’s move to raise two of its interest rates last week while keeping the main repurchase rate unchanged, doesn’t signal a shift toward a tightening bias.Markets throughout the session remained in positive territory and hovered in a tight rage before snapping the session with gain of about a percent and above 6050 mark.

On the sectoral front, barring CNX Infra which ended marginally lower by 0.10%, all the other indices made a positive closing. CNX PSU was up by 2.17%, CNX Realty gained 1.40%, CNX MNC was up by 1.12%, CNX Finance was up by 0.99%, CNX PSE was up by 0.78%, CNX Services was up by 0.69% and CNX Media added 0.55%.

The India VIX witnessed contracted 5.16% at 16.72 as compared to its previous close of 17.63 on Monday. The 50-share CNX Nifty gained 46.00 points or 0.76% to settle at 6,077.80.

Nifty July 2013 futures closed at 6087.00 on Tuesday at a premium of 9.20 points over spot closing of 6,077.80, while Nifty August 2013 futures ended at 6121.55 at a premium of 43.75 points over spot closing. Nifty July futures saw contraction of 2.24 million (mn) units taking the total outstanding open interest (OI) to 11.86 mn units. The near month July 2013 derivatives contract will expire on July 25, 2013.

From the most active contracts, DLF July 2013 futures last traded at a premium of 0.20 points at 175.05 compared with spot closing of 174.85. The number of contracts traded was 17,202.

HUL July 2013 futures were flat compared with spot closing of 720.00. The number of contracts traded was 16,790. 

Reliance Capital July 2013 futures last traded at a discount of 0.15 points at 394.70 compared with spot closing of 394.85. The number of contracts traded was 17,672.

ICICI Bank July 2013 futures were at a discount of 0.05 points at 990.75 compared with spot closing of 990.80. The number of contracts traded was 17,985. 

L&T July 2013 futures last traded at a premium of 3.35 points at 903.00 compared with spot closing of 899.65. The number of contracts traded was 29,248.

Among Nifty calls, 6,200 SP from the July month expiry was the most active call with an addition of 0.27 million open interest.

Among Nifty puts, 6,000 SP from the July month expiry was the most active put with an addition of 1.39 million open interest.

The maximum OI outstanding for Calls was at 6,200 SP (6.09 mn) and that for Puts was at 6,000 SP (8.86 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6093.67 -- Pivot Point 6077.48 -- Support-- 6061.62.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.63 for July-month contract. The top five scrips with highest PCR on OI were MRF 4.00,   Sesa Goa 2.20, Ambuja Cement 1.95, HUL 1.69 and ITC 1.59. Among most active underlying, Unitech witnessed contraction of 12.32 million of Open Interest in the July month futures contract followed by Jaiprakash Associates which witnessed contraction of 6.70 million of Open Interest in the near month contract; Reliance Communication witnessed contraction of 4.29 million in the July month futures. Also, Reliance Power witnessed contraction of 6.87 million in Open Interest in the July month contract and HDIL witnessed contraction of 1.35 million of Open Interest in the near month futures contract.