Nifty snaps 4-day losing streak; clinches 5400 level

Nifty closed on a higher note as rupee recovered from an all time low. In addition, the gains in European markets coupled with upbeat reading on Chinese manufacturing data aided the positive sentiment. High volatility was witnessed as nifty edged lower after swinging wildly between the positive and negative terrain in early trade as the US Federal Reserve signaled that it officials are inclined towards phase out of its massive stimulus program. Volatility continued as index turned slightly in the green supported by buying in metal and mining counter on back of strong China’s manufacturing data in mid-morning trade. Index once again slipped into the red in late -morning trade as rupee further weakened to hit fresh record low below the 65 mark against the dollar. In the early afternoon trade, index regained in positive terrain to hit fresh intraday high in afternoon trade as metal stocks lead after the Steel Ministry opposed the move to lower export duty on iron ore to boost exports. Local steel companies too have raised concern on the issue, saying domestic demand exceeds production and a lowering of rates would lead to a rise in prices. In last leg of trade, index added strength as Indian rupee trimmed losses after hitting record low below 65 against the dollar. The rupee was hovering at near 64.85 at the time of closing of equity markets.

Sectoral indices on the NSE made a green close. CNX Media was down by 1.19%, CNX Realty  was down by 0.53% and CNX Finance was down by 0.38% remained the top loser in the trade. While, CNX Metal was up by 7.54%, CNX Commodities was up by 4.01%, CNX PSE was up by 3.38%, CNX Energy was up by 3.21% and CNX Pharma was up by 2.76% remained the top gainers in the trade.The India VIX witnessed an addition of 3.45% at 29.06 as compared to its previous close of 28.09 on Wednesday. The 50-share CNX Nifty gain 105.90 points or 2.00 % to settle at 5,408.45.

Nifty August 2013 futures closed at 5414.30 on Thursday at a premium of 5.85 points over spot closing of 5,408.45, while Nifty September 2013 futures ended at 5440.95 at a premium of 32.50 points over spot closing. Nifty August futures saw contraction of 0.68 million (mn) units taking the total outstanding open interest (OI) to 23.54 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 premium of 0.15 points at 144.45 compared with spot closing of 144.30. The number of contracts traded was 24,243.

Yes Bank August 2013 futures were at a premium of 0.55 points at 244.05 compared with spot closing of 243.50. The number of contracts traded was 54,854. 

Tata Steel August 2013 futures last traded at a premium of 0.55 points at 273.55 compared with spot closing of 273.00. The number of contracts traded was 30,272.

HDFC Bank August 2013 futures last traded at a premium of 2.30 points at 591.30 compared with spot closing of 589.00. The number of contracts traded was 20,875.

ICICI Bank August 2013 futures were at a premium of 3.10 points at 834.35 compared with spot closing of 831.25. The number of contracts traded was 38,688.   Among Nifty calls, 5,600 SP from the Aug month expiry was the most active call with an addition of 0.70 million open interest.

Among Nifty puts, 5,300 SP from the Aug month expiry was the most active put with an addition of 1.25 million open interest.

The maximum OI outstanding for Calls was at 5,700 SP (6.89 mn) and that for Puts was at 5,300 SP (7.95mn).

The respective Support and Resistance levels of Nifty are: Resistance 5466.92 -- Pivot Point 5360.48 -- Support - 5302.02.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.87 for August month contract.

The top five scrips with highest PCR on OI were Bharat Forg 2.39, Wipro 1.43, Infosys 1.43, Ranbaxy 1.42, and SR Transfin 1.33.

Among most active underlying, SBI witnessed   an addition of 0.10 million of Open Interest in the Aug month futures contract followed by MC Dowell-N which witnessed contraction of 0.20 million of Open Interest in the near month contract; Reliance Industries witnessed  contraction of 0.04 million in the Aug month futures. Also, ICICI Bank witnessed an addition of 0.95 million in Open Interest in the Aug month contract and DLF witnessed contraction of 0.53 million of Open Interest in the near month futures contract.