Nifty reclaims 5900, Metal lead

Nifty ended on a firm note with regaining the psychologically level of 5,900 on back of significant buying in metal and mining stocks. Risk appetite got a boost after a gauge of China’s services industries jumped to a six-month high raising hopes that the world’s second-biggest economy will sustain a rebound after a two-quarter slowdown.

Prolonging its previous session’s northward journey, Nifty edged higher in early trade with its 5,800 level on expectations that the US government's partial shutdown could lead to the US Federal Reserve postponing tapering of monetary stimulus to the US economy. Further, Index strengthened and hits highest level in almost a week in late -morning trade supported by sharp appreciation in Indian rupee as against dollar, tracking global dollar weakness. The rupee rose to near one-week high, and traded at 61.91/92 versus Tuesday’s close of 62.46/47. Some support also came in after Finance Minister P Chidambaram has expressed his confidence of closing the fiscal with a better set of numbers than initially projected. However, investors remained little cautious after the Asian Development Bank (ADB) lowered India’s growth projection for 2013-14 to 4.7 percent from 6 percent earlier, saying the recent rupee depreciation and capital outflows could adversely impact the country’s economy. 

Firmness continued on the domestic index in afternoon trade on back of buying witnessed in metal stocks after China’s services industries jumped to a six-month high raising hopes that the world’s second-biggest economy will sustain a rebound after a two-quarter slowdown. European stocks opened higher also boosted sentiment on the index. Last leg of trade, index continued with its upward march and close in nearly two weeks high as software services exporters gained on bets for an improving business outlook in key markets, while banks surged on potential gains from falling bond yields.

NSE sectoral indices made green closing. CNX Metal up by 3.94%, CNX Media up by 3.68%, CNX Bank up by 3.44%, CNX Finance up by 2.86% and CNX Service up by 2.59% .On the other hand, CNX FMCG down by 0.76%, was the only loser on sectoral indices.The India VIX decreased by 2.32% at 25.17 as compared to its previous close of 25.77 on Tuesday. The 50-share CNX Nifty gained 129.65 points or 2.24% to settle at 5,909.70.

Nifty October 2013 futures closed at 5966.80 on Thursday at a premium of 57.10 points over spot closing of 5,909.70, while Nifty November 2013 futures ended at 6005.25 at a premium of 95.55 points over spot closing. Nifty October futures saw an addition of 1.00 million (mn) units taking the total outstanding open interest (OI) to 17.34 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 1.85 points at 140.40 compared with spot closing of 138.55. The number of contracts traded was 13,794.

Tata Motors October 2013 futures last traded at a premium of 2.60 points at 349.35 compared with spot closing of 346.75. The number of contracts traded was 13,501.

Tata Steel October 2013 futures were at a premium of 3.55 points at 289.20 compared with spot closing of 285.65. The number of contracts traded was 13,592. 

Yes Bank October 2013 futures last traded at a premium of 4.55 points at 314.25 compared with spot closing of 309.70. The number of contracts traded was 24,994.

Ranbaxy Laboratories October 2013 futures were at a premium of 6.20 points at 366.00 compared with spot closing of 359.80. The number of contracts traded was 11,796.  Among Nifty calls, 6,100 SP from the October month expiry was the most active call with an addition of 0.59 million open interest.

Among Nifty puts, 5,700 SP from the October month expiry was the most active put with an addition of 0.39 million open interest.

The maximum OI outstanding for Calls was at 6,100 SP (3.87 mn) and that for Puts was at 5,700 SP (4.63 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5950.63 -- Pivot Point 5876.67 -- Support -- 5835.73.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.33 for October month contract.

The top five scrips with highest PCR on OI were, Havells 8.33, Siemens 4.00, Ultra Cements 1.85 ,Jindal Steel 1.80, and Opto Circui 1.58.

Among most active underlying, SBI witnessed an addition of 0.10 million in Open Interest in the October month futures contract followed by United Spirits with an addition of 0.34 million Open Interest in the near month contract; Reliance Industries witnessed contraction of 0.12 million of Open Interest in the October month futures. Infosys witnessed an addition of 0.31 million in Open Interest in the October month contract and Yes Bank witnessed an addition of 0.15 million in Open Interest in the near month futures contract.