Nifty adds about half a percent; regains 5,550 mark

The local benchmark, Nifty witnessed a good day of trade and snapped the session in the green on Tuesday. However, the global cues continued to remain unsupportive as the US markets declined again overnight and the Asian markets too closed mixed, though the domestic market managed to garner a gain of about half a percent and regained its crucial 5,550 mark. Earlier, market opened in the red on the back of weak global cues but turned positive supported by bargain hunting in some of the key heavyweights in the very early trade.  Afterwards, the local index traded in the tight band near the neutral line till late morning session however, positive cues from European peers provided good support to the domestic market and the index changed its gear and started moving higher. Strong buying witnessed in Realty, IT and Oil & Gas sector too helped the market to regain its psychological 5,550 level and market touched its intraday high in the mid afternoon trade. Moreover, PSU oil marketing companies viz., BPCL, HPCL and IOC all ended higher in the trade after crude oil prices fell below $100 a barrel on expectations that OPEC will raise production targets at its meeting this Wednesday in Vienna, in the backdrop of triple-digit oil prices and pressure from consumer countries to increase supplies. Finally, market snapped the day’s trade with gain of about half a percent and ended just over its crucial 5,550 mark.

On the global front, the US markets continued their southward journey in the new week and all the major indices were down by half to one percent each, while Asian equity indices finished the day’s trade on mixed note on Tuesday as investors remained on the safer side amid concern over a slowing US economy. Moreover, all the European counterparts were trading on a higher note where major indices, DAX and CAC were trading with a gain of more than half a percent in the trade at this point of time. Back home, on the sectoral front on the NSE, CNX Realty was the major gainer, surging 1.92% followed by CNX IT up 0.1.30% and Bank Nifty up by 0.17% while, CNX Infra dipped 0.34%. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 0.98% and reached 18.03, while S&P Nifty closed at 5,556.15 gaining 24.10 points or 0.44%. The markets registered volumes of over Rs 0.67 lakh crore while the turnover for NSE F&O segment remained lower compared to Monday at over Rs 0.78 lakh crore.

The India VIX contracted 0.98% at 18.03 on Tuesday as compared to its previous close of 18.21 on Monday.  

The 50-share S&P CNX Nifty added 24.10 points or 0.44% and settled at 5,556.15.

Nifty June 2011 futures closed at 5,563.00, at a premium of 6.85 points over spot closing of 5,556.15, while Nifty July 2011 futures were at 5,577.00 at a premium of 20.85 points over spot closing. The near month June 2011 derivatives contract expires on Thursday, June 30, 2011. Nifty June futures saw addition of 5.13% or 1.24 million (mn) units, taking the total outstanding open interest (OI) to 25.60 mn units.

From the most active underlying, SBI’s June 2011 futures closed at a premium of 13.30 points at 2326.30 compared with spot closing of 2313.00. The number of contracts traded was 15,620.

Tata Motors June 2011 futures were at a premium of 5.55 point at 1033.55 compared with spot closing of 1028.00. The number of contracts traded was 16,093.

Infosys June 2011 futures were at a premium of 7.10 points at 2896.70 compared with spot closing of 2889.60. The number of contracts traded was 11,445.

RIL June 2011 futures were at a premium of 3.00 at 962.60 compared with spot closing of 959.60. The number of contracts traded was 14,776.

Tata Steel June 2011 futures were at a premium of 0.35 points at 579.90 compared with spot closing of 579.55. The number of contracts traded was 11,291.  Among Nifty calls, 5600 SP from the June month expiry was the most active call with an addition of 0.18 million or 3.42%.Among Nifty puts, 5500 SP from the June month expiry was the most active put with addition of 0.69 million or 10.91%.

The maximum Call OI outstanding for Calls was at 5600 SP (5.54 mn) and that for Puts was at 5500 SP (7.00 mn).

The respective Support and Resistance levels are: Resistance 5581.56-- Pivot Point 5544.68-- Support 5519.26.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.36 for June -month contract.

The top five scrips with highest PCR on OI were Sintex - 2.00, Bharat Forge -2.00, HDIL- 1.20, Piramal Healthcare - 1.14, and Sun Pharmaceuticals - 1.12.

Among most active underlying, Tata Motors witnessed an addition of 5.67% of Open Interest (OI) in the June month futures contract followed by Reliance Industries which contracted 1.40% of Open Interest (OI) in the near month contract. Meanwhile State Bank of India (SBI) witnessed an addition of 1.97% of OI in the June month futures. Lastly, SUNTV witnessed an addition of 15.22% of OI in the June month futures.