Nifty edges higher on firm global cues: Claims 5550 mark

Nifty ended firm for fourth consecutive trading session this Monday as risk-appetite improved after robust China’s manufacturing data signalled hopes of growth recovery in world’s second-biggest economy. China’s economy recovered after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August. Investors are now anxiously waiting for any fresh measures with Raghuram Rajan taking over the reins of RBI as the new governor on September 5.

Nifty made a jubilant start and continued its up move in early trade. Sentiments got some support from firming trend on other Asian bourses on the back of strong manufacturing data from China, although India's economic growth was reported to be weak in the April-June quarter. In late morning trade, index continued firm trade and hit fresh intraday high as the European markets opened stronger. Commerce minister's statement that the recent pick-up in domestic exports will continue through the rest of the financial year despite the global slowdown also added to the optimistic sentiments. Oil & gas stocks, especially the PSU oil marketing companies too gained around 1-2% after they hiked petrol and diesel prices during the weekend. In last leg of trade, index closed holding on to its intraday gains above the psychological 5550 level.

Sectoral indices on the NSE made a green. CNX Realty was up by 3.48%, CNX FMCG was up by 3.35%, CNX Metal was up by 3.15%, CNX Media was up by 1.79% , CNX Media was up by 2.47% and CNX Energy was up by 2.16%  were remained gainer in the trade. While, there was no loser in the trade.

The India VIX witnessed contraction of 0.93% at 27.55 as compared to its previous close of 27.81 on Friday. The 50-share CNX Nifty gain 78.95 points or 1.44% to settle at 5,550.75.

Nifty September 2013 futures closed at 5554.60 on Monday at a premium of 3.85 points over spot closing of 5,550.75, while Nifty October 2013 futures ended at 5577.30 at a premium of 26.55 points over spot closing. Nifty September futures saw an addition of 0.71 million (mn) units taking the total outstanding open interest (OI) to 18.03 mn units. The near month September 2013 derivatives contract will expire on September 26, 2013.

From the most active contracts, JP Associates September 2013 futures last traded at a premium of 0.35 points at 36.70 compared with spot closing of 36.35. The number of contracts traded was 15,487.

Reliance Communications September 2013 futures were at a premium of 0.30 points at 130.30 compared with spot closing of 130.00. The number of contracts traded was 13,757. 

Tata Motors September 2013 futures last traded at a premium of 3.05 points at 302.60 compared with spot closing of 299.55. The number of contracts traded was 13,649.

Tata Steel September 2013 futures last traded at a premium of 0.55 points at 291.25 compared with spot closing of 290.70. The number of contracts traded was 18,002.

Yes Bank September 2013 futures last traded at a premium of 2.00 points at 254.85 compared with spot closing of 252.85. The number of contracts traded was 17,636.

Among Nifty calls, 5,700 SP from the Sep month expiry was the most active call with an addition of 0.37 million open interest.

Among Nifty puts, 5,300 SP from the Sep month expiry was the most active put with an addition of 0.48 million open interest.

The maximum OI outstanding for Calls was at 5,700 SP (3.22 mn) and that for Puts was at 5,300 SP (6.87 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5584.15 -- Pivot Point 5531.5 -- Support - 5498.1.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.52 for September month contract.

The top five scrips with highest PCR on OI were Finan Tech 2.32, Federal Bnk 2.25, Divis Lab 2.00, Coal India 1.86 and Bharat Forg 1.56.

Among most active underlying, SBI witnessed an addition of 0.13 million of Open Interest in the Sep month futures contract followed by United Spirits an addition of 0.06 million Open Interest in the near month contract; Axis Bank  witnessed contraction of 0.06 million in the Sep month futures. Also, Reliance Industries witnessed an addition of 0.80 million in Open Interest in the Sep month contract and TCS witnessed an addition of 0.11 million of Open Interest in the near month futures contract.