Nifty crosses 5,700 led by Rate sensitive sectors

Nifty closed the trading session on a positive note amid firm global cues, mainly on account of dead cat bounce of rate-sensitive sectors. Rate sensitive shares rose after the RBI chief Duvvuri Subbarao said that 'perhaps' there was a need to reduce the reserves that banks have to set aside via the cash reserve or the statutory liquidity ratios.  Meanwhile, the rupee’s recovery also aided the sentiment. The currency pulled back after the government increased import duty on gold, silver and platinum to 10 percent with a view to arrest the declining value of rupee and contain the fiscal deficit to 3.7 percent of the GDP.

Firm opening in European counterparts too supported the domestic markets with CAC, DAX and FTSE all edging higher in early deals ahead of the release of economic data from Germany which will throw more light on the health of Europe's strongest economy. Rally in Asian markets too boosted investors’ confidence, with Japanese Nikkei gaining over two and a half percent as the yen weakened on report that Prime Minister Shinzo Abe is considering a corporate tax cut, as a way to offset the impact of a planned two-stage increase in the sales tax.

50 share index opened lower on weak industrial production data for June 2013 released by the government after trading hours on Monday, 12 August 2013.  However, the index  soon gained momentum as investors’ sentiments got a boost after the Reserve Bank of India (RBI) governor Duvvuri Subbarao said that ‘perhaps’ there is a need to reduce the reserves that banks have to set aside via the cash reserve or the statutory liquidity ratios. Thus, gaining momentum gradually, the index settled near day’s high level by the close of the trade.

Barring CNX metal, all sectoral indices on the NSE made a green close. CNX Metal was down by 0.12%, remained the top loser in the trade. While, CNX Realty was up by 5.04%, CNX Finance added 2.87%, Bank Nifty surged by 2.82%, CNX Service spurted 2.49%, CNX Media spiked up by 2.31% and CNX Auto up by 2.20% remained the gainers in the trade. The India VIX witnessed contraction of 9.49 % at 19.26 as compared to its previous close of 21.28 on Monday. The 50-share CNX Nifty gain 86.90 points or 1.55% to settle at 5,699.30.

Nifty August 2013 futures closed at 5711.35 on Tuesday at a premium of 12.05 points over spot closing of 5,699.30, while Nifty September 2013 futures ended at 5740.60 at a premium of 41.30 points over spot closing. Nifty August futures saw contraction of 0.84 million (mn) units taking the total outstanding open interest (OI) to 13.78 mn units. The near month August 2013 derivatives contract will expire on August 29, 2013.

From the most active contracts, DLF August 2013 futures last traded at a discount of 1.45 points at 150.15 compared with spot closing of 151.60. The number of contracts traded was 22,158.

Tata Motors August 2013 futures were at a premium of 0.10 points at 292.70 compared with spot closing of 292.60. The number of contracts traded was 16,550. 

Tata Steel August 2013 futures last traded at a premium of 0.90 points at 241.90 compared with spot closing of 241.00. The number of contracts traded was 21,165.

Yes Bank August 2013 futures last traded at a discount of 3.45 points at 311.85 compared with spot closing of 315.30. The number of contracts traded was 27,627.

ICICI Bank August 2013 futures were at a premium of 5.50 points at 897.10 compared with spot closing of 891.60. The number of contracts traded was 26,320.   Among Nifty calls, 6,000 SP from the Aug month expiry was the most active call with contraction of 0.25 million open interest.

Among Nifty puts, 5,400 SP from the Aug month expiry was the most active put with  contraction of 0.93 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (6.19 mn) and that for Puts was at 5,400 SP (6.23 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5743.07 -- Pivot Point 5660.98 -- Support - 5617.22.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.05 for August month contract.

The top five scrips with highest PCR on OI were Bharat Forg 3.00, Infosys 1.57, Ranbaxy 1.55, Gail 1.49 and Wipro 1.35.

Among most active underlying, JP Associates witnessed an addition of 2.83 million of Open Interest in the Aug month futures contract followed by Reliance Communications which witnessed an addition of 0.67 million of Open Interest in the near month contract; DLF witnessed an addition of 0.09 million in the Aug month futures. Also, BHEL witnessed contraction of 0.53 million in Open Interest in the Aug month contract and Hindalco Industries witnessed an addition of 0.25 million of Open Interest in the near month futures contract.