The 50-share Nifty index posted its highest close since May 30 and hit a 3.5-month high on the back of short coverings on Thursday, after the US Federal Reserve decided to continue with its bond purchase programme.
Extending previous session’s jubilation, Nifty made a gap-up opening with its crucial 6,050 level after the Federal Reserve chief Ben Bernanke surprised markets by continuing with its $85 billion dollar stimulus injection plan. Sentiments also got some boost after rupee strengthened significantly in today’s trade tracking other emerging market currencies after US Federal Reserve continued with its bond-buying plan. The partially convertible rupee was trading at 61.90 per dollar against yesterday’s close of 63.38 on the Interbank Foreign Exchange. Index regained strength in early afternoon trade after the Economic Affairs Secretary (DEA) Arvind Mayaram stated that economic growth will pick up in the third and fourth quarters of the current fiscal and the government will be able to meet its fiscal deficit target. In the afternoon, index extended intraday gains and hit fresh intraday highs due to buying in sensitive sectors such as automobiles, real estate, and banking that rallied on the hopes that the Reserve Bank of India (RBI) may ease interest rates in its coming monetary policy on September 20 to boost the Indian industry’s growth. Further, gains in rupee against the dollar also added to the optimistic sentiments. Nifty almost claimed 6150 level in the last hour of trade, however later cooled off due profit booking at the end of the exuberant session of trade, closing more than two hundred points above its previous close at 6115.
NSE sectoral indices made a green closing. CNX PSU Bank surged by 8.25%, CNX Bank was up by 6.71%, CNX Realty was higher by 5.86%, CNX Finance was up by 5.85% and CNX Infra gained 4.61%. On the other hand, CNX IT down by 0.03% there were the loser on sectoral indices.
The India VIX decreased by 11.52% at 24.50 as compared to its previous close of 27.69 on Wednesday. The 50-share CNX Nifty gained 216.10 points or 3.66% to settle at 6,115.55.
Nifty September 2013 futures closed at 6145.75 on Thursday at a premium of 30.20 points over spot closing of 6,115.55, while Nifty October 2013 futures ended at 6189.05 at a premium of 73.50 points over spot closing. Nifty September futures saw an addition of 0.54 million (mn) units taking the total outstanding open interest (OI) to 16.20 mn units. The near month September 2013 derivatives contract will expire on September 26, 2013.
From the most active contracts, Reliance Communications September 2013 futures last traded at a premium of 1.10 points at 161.50 compared with spot closing of 160.40. The number of contracts traded was 26,743.
DLF September 2013 futures last traded at a premium of 0.75 points at 171.95 compared with spot closing of 171.20. The number of contracts traded was 19,212.
Yes Bank September 2013 futures last traded at a discount of 1.15 points at 387.70 compared with spot closing of 388.85. The number of contracts traded was 67,536.
HDFC Bank September 2013 futures last traded at a premium of 3.50 points at 687.15 compared with spot closing of 683.65. The number of contracts traded was 18,727.
ICICI Bank September 2013 futures were at a premium of 8.65 points at 1041.65 compared with spot closing of 1033.00. The number of contracts traded was 39,047. Among Nifty calls, 6,200 SP from the Sep month expiry was the most active call with an addition of 0.54 million open interest.
Among Nifty puts, 5,600 SP from the Sep month expiry was the most active put with contraction of 0.48 million open interest.
The maximum OI outstanding for Calls was at 6,200 SP (4.14 mn) and that for Puts was at 5,600 SP (5.32 mn).
The respective Support and Resistance levels of Nifty are: Resistance 6158.65 -- Pivot Point 6099.4 -- Support -- 6056.3.
The Nifty Put Call Ratio (PCR) OI wise, stood at 1.70 for September month contract.
The top five scrips with highest PCR on OI were, SR Trans Fin 19.10, Mcleodruss 10.24, CESC 4.00, Coal India 1.79 and DLF 1.59.
Among most active underlying, SBI witnessed contraction of0.22 million in Open Interest in the Sep month futures contract followed by United Spirits with contraction of 0.01 million Open Interest in the near month contract; ICICI Bank witnessed contraction of 1.16 million of Open Interest in the Sep month futures. Reliance Industries witnessed a contraction of 0.17 million in Open Interest in the Sep month contract and Axis Bank witnessed contraction of 0.02 million in Open Interest in the near month futures contract.
