Nifty ends at one-week high on fag-end buying before US Fed decision

Nifty ended at one-week high as European stocks and US index futures rose ahead of the outcome of the two-day meeting of the Federal Open Market Committee which concludes today, September 18, 2013.

Index pared opening gains and traded near the flat line as Investors opted the wait and watch policy ahead of outcome of the US Federal Reserve meeting and Reserve Bank of India’s (RBI) monetary policy review. The rupee was trading at Rs 63.25 compared with previous close of Rs 63.37 per dollar. Sentiments got some support from report that Foreign Direct Investment (FDI) into India grew by 12 percent year-on-year to $1.65 billion in July from $1.47 billion in July 2012, highest since April. In the afternoon trade, index retained positive zone due to buying in Realty, FMCG and Banking sectors. Meanwhile, European markets’ positive start also added to the positive sentiment. In the last leg of trade, the index picked up pace to end well above 5850 level.

NSE sectoral indices made a green closing. CNX PSU Bank surged by 2.35%, CNX Realty was up by 2.09%, CNX Bank was higher by 1.64%, CNX FMCG was up by 1.43% and CNX Energy gained 1.25%. On the other hand, there was not loser on sectoral indices.

The India VIX decreased by 0.85% at 27.69 as compared to its previous close of 27.93 on Tuesday. The 50-share CNX Nifty gained 49.25 points or 0.84% to settle at 5,899.45.

Nifty September 2013 futures closed at 5931.45 on Wednesday at a premium of 32.00 points over spot closing of 5,899.45, while Nifty October 2013 futures ended at 5981.30 at a premium of 81.85 points over spot closing. Nifty September futures saw contraction of 0.30 million (mn) units taking the total outstanding open interest (OI) to 15.66 mn units. The near month September 2013 derivatives contract will expire on September 26, 2013.

From the most active contracts, BHEL September 2013 futures last traded at a discount of 0.40 points at 130.10 compared with spot closing of 130.50. The number of contracts traded was 10,497.

DLF September 2013 futures last traded at a discount of 0.10 points at 161.30 compared with spot closing of 161.40. The number of contracts traded was 14,773.

Tata Motors September 2013 futures were at a premium of 2.75 points at 338.75 compared with spot closing of 336.00. The number of contracts traded was 9,872. 

Yes Bank September 2013 futures last traded at a discount of 1.05 points at 317.40 compared with spot closing of 318.45. The number of contracts traded was 28,172.

ICICI Bank September 2013 futures last traded at a premium of 3.95 points at 978.55 compared with spot closing of 974.60. The number of contracts traded was 13,005. Among Nifty calls, 6,000 SP from the Sep month expiry was the most active call with an addition of 0.51 million open interest.

Among Nifty puts, 5,300 SP from the Sep month expiry was the most active put with marginal gain in open interest.

The maximum OI outstanding for Calls was at 6,000 SP (5.64 mn) and that for Puts was at 5,300 SP (6.27 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5930.83 -- Pivot Point 5885.52 -- Support -- 5854.13.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.50 for September month contract.

The top five scrips with highest PCR on OI were, Mcleodruss 11.82, CESC 5.50, Coal India 2.06, AXIS Bank 1.50, and DLF 1.50.

Among most active underlying, SBI witnessed contraction of 0.10 million in Open Interest in the Sep month futures contract followed by United Spirits with contraction of 0.11 million Open Interest in the near month contract; ICICI Bank witnessed an addition of 0.25 million of Open Interest in the Sep month futures. Reliance Industries witnessed a contraction of 0.05 million in Open Interest in the Sep month contract and HDFC witnessed an addition of 0.03 million in Open Interest in the near month futures contract.