Nifty surges as rupee strengthens; claims 5650 level

Nifty ending firm above 5,650 back of buying witnessed in financial shares after the central bank raised overseas borrowing limits for lenders in a bid to prop up growth and boost the rupee.  Meanwhile, Reserve Bank of India has allowed banks to issue, without its approval, guarantees on behalf of non-residents acquiring shares or convertible debentures of a company in India through open offers or delisting or exit offers.

Nifty reversed initial losses and entered the positive terrain, triggered by positive sentiments due to recent measures announced by the Reserve Bank of India (RBI) governor Raghuram Rajan in early deals. Index retained positive zone in early noon trade as rupee strengthened against the dollar after Foreign Minister Salman Khurshid said in an interview to a business channel that the oil minister will on September 16, 2013 announce plans for lowering fuel consumption. In afternoon trade Index extended gains and hit 3-week high on positive opening of the European market. In last leg of trade, index ended at day's high ahead of likely decision on telecom and oil & gas space.

Sectoral indices on the NSE made a green. CNX Media was down by 0.69%, CNX PSU Bank was down by 0.64%, CNX MNC was down by 0.46%, CNX auto was down by 0.23%and CNX Realty was down by 0.10% were remained losers in the trade. While, CNX PSE was up by 3.12%, CNX Infra was up by 3.06%, CNX Bank was up by 2.88%, CNX Finance was up by 2.66 and CNX Energy was up by 1.89% were remained gainers in the trade.

The India VIX witnessed an addition of 0.42% at 28.65 as compared to its previous close of 28.53 on Thursday. The 50-share CNX Nifty gain 87.45 points or 1.56 % to settle at 5,680.40.

Nifty September 2013 futures closed at 5697.80 on Friday at a premium of 17.40 points over spot closing of 5,680.40, while Nifty October 2013 futures ended at 5724.00 at a premium of 43.60 points over spot closing. Nifty September futures saw an addition of 0.30 million (mn) units taking the total outstanding open interest (OI) to 18.08 mn units. The near month September 2013 derivatives contract will expire on September 26, 2013.

From the most active contracts, DLF September 2013 futures last traded at a premium of 1.50 points at 138.90 compared with spot closing of 137.40. The number of contracts traded was 13,748.

Sesa Goa September 2013 futures were at a premium of 1.95 points at 176.35 compared with spot closing of 174.40. The number of contracts traded was 18,234. 

HDFC Bank September 2013 futures last traded at a premium of 6.90 points at 621.10 compared with spot closing of 614.20. The number of contracts traded was 17,115.

Yes Bank September 2013 futures last traded at a premium of 2.95 points at 294.95 compared with spot closing of 292.00. The number of contracts traded was 41,736.

ICICI Bank September 2013 futures last traded at a discount of 5.20 points at 956.80 compared with spot closing of 962.00. The number of contracts traded was 39,886.The respective Support and Resistance levels of Nifty are: Resistance 5723.95 -- Pivot Point 5645.05-- Support - 5601.5.

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, Mcleodruss 40.86, CESC 10.00, Finan Tech 2.39, Ind Hotel 2.25 and Divis Lab 2.00.

Among most active underlying, SBI witnessed an addition of 0.07 million of Open Interest in the Sep month futures contract followed by United Spirits  contraction  marginally in Open Interest in the near month contract; ICICI Bank  witnessed an addition  of 1.32million in the Sep month futures. Also, Reliance Industries witnessed an addition of 0.04 million in Open Interest in the Sep month contract and State Bank of India witnessed an addition of 0.07 million in Open Interest in the near month futures contract.