Nifty ended above 5900 level on recovery in rupee

Continuing its upward journey for the fifth consecutive session, Nifty managed to close above the psychological 5900 level on the back of appreciation in rupee, supported largely by banks. Nifty edged lower in early trade as the rupee weakened due to dollar buying by state-run banks to meet demand of importers. A bout of volatility was witnessed as index slipped into the red again in late morning trade after reversing initial losses as supported by buying in select banking shares after the Reserve Bank of India (RBI) has allowed banks to borrow overseas up to 100% of their capital and swap it at a subsidized rate. Index continued to extend losses and hit fresh intraday low in afternoon trade as investor remained on sidelines ahead of August inflation numbers, inflation likely edged up to a sixth-month high in August, driven by higher food prices and as the battered rupee made key imports such as fuel costlie. In last leg off trade, buying emerged at lower levels and helped the index recover most of their losses, as rupee strengthened and came very close to breach the 63 per dollar mark on lower side.

Sectoral indices on the NSE made a green close. CNX PSU Bank was up by 5.33%,CNX metal was up by 3.15%, CNX Realty was up by 3.04%, CNX Bank was up by 1.78% and CNX Finance was up by 1.19% were remained gainers in the trade. While, CNX FMCG was down by 1.13%, CNX Energy was down by 0.47%, CNX IT was down by 0.45% and CNX Media was down by 0.03% were remained losers in the trade. The India VIX witnessed an addition of 1.05% at 29.75 as compared to its previous close of 29.44 on Tuesday. The 50-share CNX Nifty gain 16.40 points or 0.28% to settle at 5,913.15.

Nifty September 2013 futures closed at 5939.65 on Wednesday at a premium of 26.50 points over spot closing of 5,913.15, while Nifty October 2013 futures ended at 5981.00 at a premium of 67.85 points over spot closing. Nifty September futures saw contraction of 1.02 million (mn) units taking the total outstanding open interest (OI) to 19.10 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 0.55 points at 43.60 compared with spot closing of 43.05. The number of contracts traded was 22,785.

DLF September 2013 futures last traded at a premium of 0.65 points at 151.95 compared with spot closing of 151.30. The number of contracts traded was 16,077.

Tata Motors September 2013 futures last traded at a premium of 1.65 points at 342.85 compared with spot closing of 341.20. The number of contracts traded was 22,205.

Tata Steel September 2013 futures last traded at a premium of 2.70 points at 316.80 compared with spot closing of 314.10. The number of contracts traded was 18,667.

Yes Bank September 2013 futures were at a premium of 4.00 points at 306.50 compared with spot closing of 302.50. The number of contracts traded was 27,428.  Among Nifty calls, 6,000 SP from the Sep month expiry was the most active call with an addition of 0.30 million open interest.

Among Nifty puts, 5,300 SP from the Sep month expiry was the most active put with an addition  of 0.14 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (4.29mn) and that for Puts was at 5,300 SP (6.59 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5947.43 -- Pivot Point 5890.07 -- Support - 5855.78.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.59 for September month contract.

The top five scrips with highest PCR on OI were, Mcleodruss 29.92, CESC 10.00, Ind Hotel 2.25, HCL Tech 1.99 and Coal India 1.96.

Among most active underlying, SBI witnessed contraction of 0.14 million of Open Interest in the Sep month futures contract followed by United Spirits contraction of 0.06 million Open Interest in the near month contract; Reliance Industries witnessed contraction of 0.21 million of Open Interest in the Sep month futures. Also, ICICI Bank witnessed contraction of 0.52 million in Open Interest in the Sep month contract and Axis Bank witnessed contraction of 0.21 million in Open Interest in the near month futures contract.