Nifty ends near intraday highs; Banks, Auto lead

Nifty rebounded from 3-week lows to end over 44.75 points higher as investors sentiments were marginally positive on back of the lower-than-expected June quarter CAD number and encouraging September sales for automobile firms.

A bout of volatility was witnessed in early trade as nifty, after a firm opening, slipped into the red amid reports that the White House has ordered the Federal government departments to begin executing plans for shutting down at midnight. Index regained their positive terrain after hitting 3-1/2-week low in morning trade as sentiments got some boost from report that, the eight key infrastructure industries, grew at their fastest pace in seven months at 3.7% in August. Sentiments also got some support after the Reserve Bank has decided to conduct open market operations (OMOs) by purchasing government securities for an aggregate amount of Rs 10,000 crore on October 7. Appreciation in Indian rupee as against US dollar too supported the sentiments. The partially convertible rupee was trading at 62.52 per dollar against the yesterday’s close of 62.62 on the Interbank Foreign Exchange. Mid-afternoon, indices extended gains and hit fresh intraday high as European markets opened mostly in the green terrain. Sentiments also remained upbeat as buying accelerated in Auto space after companies like Maruti Suzuki and TVS Motor reported better than expected September sales numbers. Some support also came in from Economic Affairs Secretary Arvind Mayaram’s statement that the economy will grow at more than 5% in the current financial year ending in March 2014. He also said that India will finance its current account deficit fully in the fiscal year ending March without drawing down on its reserves, and will also contain the fiscal deficit at 4.8% of GDP. In last leg of trade, the Index traded with strength gaining momentum to end near the highest point of the day.

NSE sectoral indices made  green closing. CNX Realty up by 2.91%, CNX Bank  up by 2.76%, CNX Finance surged by 2.60%, CNX PSU Bank up by 1.80%,and  CNX Service up by 1.44% .On the other hand, CNX Energy down by 0.92%, CNX PSE down by 0.67%, CNX MNC down by 0.49% and  CNX Metal down by 0.17% were the losers on sectoral indices.

The India VIX decreased by 3.30% at 25.77 as compared to its previous close of 26.65 on Monday. The 50-share CNX Nifty gained 44.75 points or 0.78% to settle at 5,780.05.Nifty October 2013 futures closed at 5828.45 on Tuesday at a premium of 48.40 points over spot closing of 5,780.05, while Nifty November 2013 futures ended at 5867.65 at a premium of 87.60 points over spot closing. Nifty October futures saw contraction of 0.55 million (mn) units taking the total outstanding open interest (OI) to 16.33 mn units. The near month October 2013 derivatives contract will expire on October 31, 2013.

From the most active contracts, DLF October 2013 futures last traded at a premium of 1.10 points at 138.10 compared with spot closing of 137.00. The number of contracts traded was 18,138.

Yes Bank October 2013 futures last traded at a premium of 2.15 points at 298.80 compared with spot closing of 296.65. The number of contracts traded was 33,642.

Tata Steel October 2013 futures were at a premium of 3.30 points at 279.05 compared with spot closing of 275.75. The number of contracts traded was 13,195. 

Reliance Industries October 2013 futures last traded at a premium of 10.30 points at 831.35 compared with spot closing of 821.05. The number of contracts traded was 11,282.

ICICI Bank October 2013 futures were at a premium of 4.45 points at 918.60 compared with spot closing of 914.15. The number of contracts traded was 18,053.   Among Nifty calls, 6,000 SP from the October month expiry was the most active call with an addition of 0.29 million open interest.

Among Nifty puts, 5,700 SP from the October month expiry was the most active put with an addition of 0.36 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (3.67 mn) and that for Puts was at 5,700 SP (4.24 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5810.68 -- Pivot Point 5755.82 -- Support -- 5725.18.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.24 for October month contract.

The top five scrips with highest PCR on OI were, Havells 5.67, Siemens 2.20, Jindal Steel 2.15, Ultra Cements 1.95 and Opto Circui 1.47.

Among most active underlying, SBI witnessed an addition of 0.01 million in Open Interest in the October month futures contract followed by United Spirits with an addition of 0.19 million Open Interest in the near month contract; Reliance Industries witnessed an addition of 0.23 million of Open Interest in the October month futures. Yes Bank witnessed an addition of 1.56 million in Open Interest in the October month contract and ICICI Bank  witnessed an addition of 0.14 million in Open Interest in the near month futures contract.