Nifty cheers new RBI chief Raghuram Rajan's reform agenda

Dalal Street cheered Raghuram Rajan's 'big initial package' as the nifty ended above 5,550 supported largely by banks. The market recouped all its Tuesday's losses in following two sessions as concerns regarding Syria eased and on hopes of recovery in economy after RBI governor's aggressive stance. Adding to the sentiment, Finance Minister, Chidambaram said that fiscal deficit target of 4.8% of GDP in 2013/14 is a red line which will not be crossed.

Extending previous session’s jubilation, index made a gap-up opening above its crucial 5,550 levels as sentiments remained up-beat after country’s new central bank governor unveiled fresh measures to shore up the rupee and aid overseas inflows. After hitting highest level in almost three weeks index trimmed gains and continued to trade firm in late morning trade. A bout of volatility was witnessed as index regained strength soon after paring intraday gains, while banking stocks rallied as much as 20 per cent in afternoon trade on Thursday. Raghuram Rajan yesterday announced a slew of measures relating to banks, with a view to accelerating long-pending reform issues. In last leg off trade, index continued to trade firm and closed above 5,550 levels.

Sectoral indices on the NSE made a green. CNX IT was down by 2.97% and CNX Pharma was down by 0.32% were remained losers in the trade. While, CNX Bank was up by 9.46%, CNX PSU Bank was up by 8.66%, CNX Finance was up by 7.82%, CNX Realty was up by 5.90 and CNX PSE was up by 3.06% were remained gainers in the trade.

The India VIX witnessed contraction of 8.29% at 28.53 as compared to its previous close of 31.11 on Wednesday. The 50-share CNX Nifty gains 144.85 points or 2.66% to settle at 5,592.95.

Nifty September 2013 futures closed at 5607.15 on Thursday at a premium of 14.20 points over spot closing of 5,592.95, while Nifty October 2013 futures ended at 5631.80 at a premium of 38.85 points over spot closing. Nifty September futures saw contraction of 0.70 million (mn) units taking the total outstanding open interest (OI) to 17.77 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 0.45 points at 37.85 compared with spot closing of 37.40. The number of contracts traded was 14,576.

DLF September 2013 futures were at a premium of 1.70 points at 138.95 compared with spot closing of 137.25. The number of contracts traded was 21,828. 

Tata Motors September 2013 futures last traded at a premium of 2.95 points at 318.95 compared with spot closing of 316.00. The number of contracts traded was 14,975.

Yes Bank September 2013 futures last traded at a premium of 0.40 points at 290.10 compared with spot closing of 289.70. The number of contracts traded was 66,752.

HDFC Bank September 2013 futures last traded at a premium of 3.35 points at 614.35 compared with spot closing of 611.00. The number of contracts traded was 23,194.

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

Among Nifty puts, 5,300 SP from the Sep month expiry was the most active put with contraction  of 0.80 million open interest.

The maximum OI outstanding for Calls was at 5,700 SP (4.09mn) and that for Puts was at 5,300 SP (6.62 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5628.23 -- Pivot Point 5590.47-- Support - 5555.18.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.48 for September month contract.

The top five scrips with highest PCR on OI were, Mcleodruss 39.14, CESC 10.00, Finan Tech 2.27, Divis Lab 2.00 and Ind Hotel 2.00.

Among most active underlying, SBI witnessed contraction of 0.73 million of Open Interest in the Sep month futures contract followed by United Spirits  an addition of 0.04 million Open Interest in the near month contract; Axis Bank witnessed contraction of 2.14 million in the Sep month futures. Also, Reliance Industries witnessed an addition of 0.28 million in Open Interest in the Sep month contract and Axis Bank witnessed contraction of 0.18 million in Open Interest in the near month futures contract.