Nifty cautiously claims 5450 level as the Rupee recovers

Nifty ended on a positive note as the rupee recovered after assurances from the government and the Reserve Bank. A bout of volatility was witnessed as nifty slipped into the red after a brief tick in the green opening triggered by after Finance Minister P Chidambaram said yesterday that revival and encouragement of growth would continue to be the focus of the government. High volatility continued, as the index regained positive terrain in mid-morning deals on some recovery in the Indian rupee. In late morning trades, the index cut entire intraday gains. The index traded a tad higher in early afternoon deals and then extended its gains further until last leg of trade. The bout of optimism was due to Fitch's statement, that the rupee depreciation would not trigger a change in its ratings and will maintain a ‘Stable Outlook’ on India’s sovereign rating at ‘BBB-’, mainly on the back of the country’s sizable forex reserves, fiscal deficit management and structural reforms.

Sectoral indices on the NSE made a green close. CNX Realty was down by 2.02% and CNX Media was down by 0.14% remained the top loser in the trade. While, Bank Nifty was up by 2.17%, CNX Finance was up by 1.76%, CNX Auto was up by 1.72%, CNX IT was up by 1.49% and CNX PSE was up by 1.40% remained the top gainers in the trade.

The India VIX witnessed contraction of 6.97% at 25.75 as compared to its previous close of 29.06 on Thursday. The 50-share CNX Nifty gain 63.30 points or 1.17% to settle at 5,471.75.

Nifty August 2013 futures closed at 5460.70 on Friday at a discount of 11.05 points over spot closing of 5,471.75, while Nifty September 2013 futures ended at 5490.30 at a premium of 18.55 points over spot closing. Nifty August futures saw contraction of 0.26 million (mn) units taking the total outstanding open interest (OI) to 23.28 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 0.55 points at 137.40 compared with spot closing of 136.85. The number of contracts traded was 23,531.

Tata Motors August 2013 futures were at a premium of 1.10 points at 301.05 compared with spot closing of 299.95. The number of contracts traded was 16,922. 

Tata Steel August 2013 futures last traded at a premium of 0.80 points at 281.60 compared with spot closing of 280.80. The number of contracts traded was 28,071.

Yes Bank August 2013 futures last traded at a premium of 1.95 points at 259.55 compared with spot closing of 257.60. The number of contracts traded was 41,184.

ICICI Bank August 2013 futures were at a premium of 2.95 points at 851.45 compared with spot closing of 848.50. The number of contracts traded was 38,934. 

Among Nifty calls, 5,600 SP from the Aug month expiry was the most active call with an addition of 1.51 million open interest.

Among Nifty puts, 5,300 SP from the Aug month expiry was the most active put with contraction  of 0.21 million open interest.

The maximum OI outstanding for Calls was at 5,600 SP (8.41 mn) and that for Puts was at 5,300 SP (7.73 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5507.77 -- Pivot Point 5442.78 -- Support - 5406.77.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.25 for August month contract.

The top five scrips with highest PCR on OI were Bharat Forg 2.20, Techm 1.53, Ranbaxy 1.45, Tata Steel 1.43 and Wipro 1.40.

Among most active underlying, SBI witnessed   contraction of 0.10 million of Open Interest in the Aug month futures contract followed by MC Dowell-N which witnessed contraction of 1.00 million of Open Interest in the near month contract; ICICI Bank witnessed  contraction of 0.19 million in the Aug month futures. Also, Reliance Industries witnessed contraction of 0.40 million in Open Interest in the Aug month contract and DLF witnessed an addition of 0.29 million of Open Interest in the near month futures contract.