Nifty ends higher as Rupee recovers

Nifty ended higher and closed above 5400 level on Thursday, the day of the expiry of August derivatives contracts, tracking a recovery in the battered rupee and following the slide in oil prices. Sentiments took some respite as the US President Barack Obama said, that he hasn't yet decided whether to launch an attack on Syria, while the weaker-than-expected report on US durable-goods orders, raised expectations that the Federal Reserve may delay plans to reduce its monetary stimulus to the US economy. The rupee rose on the back of the Reserve Bank of India's (RBI) decision on Wednesday, 28 August 2013, to immediately start a facility to meet the daily dollar requirement of the country's three state-run OMCs. 

Nifty made a gap-up opening above its crucial 5,300 bastion following the appreciation in Indian rupee against the dollar. The rupee was trading at Rs 67.18 per dollar as against previous close of 68.80 per dollar after the Reserve Bank of India announced measures late Wednesday to curb rupee fall through dollar flows. In late morning, the index continued to trade range-bound with positive bias even as global rating agency, Moody's said that Food Security Bill is a credit negative. Moody's currently has a 'Baa3' sovereign rating on India, or its lowest investment-grade rating, with a 'stable' outlook. Indices extended gains to hit fresh intraday high in afternoon trade after European markets opened on a positive note. In last leg off trade, index trimmed gains after hitting fresh intraday high. The index traded steady throughout the day holding on to gains and capturing one pshychological level after another finally closing above the 5400 level.

Sectoral indices on the NSE made a green close. CNX PSU Bank was down by 0.46% was only the loser in the trade. While, CNX Infra was up by 3.01%, CNX Energy was up by 2.97%, CNX Finance was up by 2.74%, CNX Metal was up by 2.71% and CNX Media was up by 2.55% was only the gainer in the trade.

The India VIX witnessed contraction of 9.17% at 29.41 as compared to its previous close of 32.38 on Wednesday. The 50-share CNX Nifty gains 124.05 points or 2.35% to settle at 5,409.05.

Nifty September 2013 futures closed at 5415.15 on Thursday at a premium of 6.10 points over spot closing of 5,409.05, while Nifty October 2013 futures ended at 5447.15 at a premium of 38.10 points over spot closing. Nifty September futures saw an addition of 1.94 million (mn) units taking the total outstanding open interest (OI) to 14.65 mn units. The near month September 2013 derivatives contract will expire on September 26, 2013.

From the most active contracts, HDFC September 2013 futures last traded at a premium of 11.50 points at 701.65 compared with spot closing of 690.15. The number of contracts traded was 26,959.

ICICI Bank September 2013 futures were at a premium of 5.15 points at 814.15 compared with spot closing of 809.00. The number of contracts traded was 28,781. 

Axis Bank September 2013 futures last traded at a premium of 8.70 points at 859.70 compared with spot closing of 851.00. The number of contracts traded was 29,017.

SBI September 2013 futures last traded at a premium of 16.40 points at 1498.40 compared with spot closing of 1482.00. The number of contracts traded was 30,089.Among Nifty calls, 5,600 SP from the Sep month expiry was the most active call with an addition of 0.51million open interest.

Among Nifty puts, 5,300 SP from the Sep month expiry was the most active put with an addition of 0.51 million open interest.

The maximum OI outstanding for Calls was at 5,500 SP (2.65 mn) and that for Puts was at 5,300 SP (4.52mn).

The respective Support and Resistance levels of Nifty are: Resistance 5457.63 -- Pivot Point 5380.32 -- Support - 5331.73.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.42 for September month contract.

The top five scrips with highest PCR on OI were Jubl Food 9.00, Siemens 4.00, Finan Tech 3.80, JSW Energy 3.00, and Bata India 2.33.

Among most active underlying, SBI witnessed contraction of 0.88 million of Open Interest in the Sep month futures contract followed by ICICI Bank which witnessed contraction of 0.63 million of Open Interest in the near month contract; Reliance Industries witnessed contraction of 0.59 million in the Sep month futures. Also, HDFC witnessed an addition of 2.96 million in Open Interest in the Sep month contract and United Spirits witnessed contraction of 0.88 million of Open Interest in the near month futures contract.