Investors cheer Sept trade data, Nifty regains 6,000 mark

Nifty ended firm and breached important resistance of 6,000 as investors turned bullish following the unveiling of better-than-expected trade deficit data in September.

Pressurized by weak global cues, nifty edged lower in early deals on Wednesday. The US markets suffered sharp plunge overnight on worries about the impact of the ongoing government shutdown. Moreover, Asian markets too exhibited sluggish trade in early deals as sentiments were dampened after International Monetary Fund (IMF) estimated current fiscal's growth projections for world to 2.9% and India’s growth projection to 3.8% from 5.6% as projected in July. The IMF said that growth in India has slowed down more than anticipated and the country must maintain fiscal and monetary credibility in order to prevent capital outflows. In the late morning, the Index recouped its early losses after index heavyweights, which had slipped into the red in early deals staged a recovery and were trading in positive zone. However, gains remained capped on weakness in Indian rupee against dollar. The Indian rupee was trading at 62.15 per dollar as compared to previous day’s close of Rs 61.79 per dollar.

In the afternoon trade, Index pared early losses and entered into the positive territory as investors’ sentiments got a boost after Indian trade deficit narrowed sharply to $6.7 billion in the month of September as against $10.9 billion in the previous month. Further, the recovery in rupee value against the dollar also added to the optimistic sentiments. In last leg of trade, the Index managed to close above 6000 level on good buying in bluechips led by bank and rate-sensitive stocks for the first time in three weeks.

NSE sectoral indices made a green closing. CNX Realty up by 4.62%, CNX Bank up by 1.91%, CNX Pharma 1.91%, CNX Finance up by 1.76%, CNX Service up by 1.58%. On the other hand, CNX MNC down by 0.09% was only the losers.

The India VIX decreased by 2.56% at 25.87 as compared to its previous close of 26.55 on Tuesday. The 50-share CNX Nifty inclined by 79.05 points or 1.33% to settle at 6,007.45.

Nifty October 2013 futures closed at 6048.50 on Wednesday at a premium of 41.05 points over spot closing of 6,007.45, while Nifty November 2013 futures ended at 6093.80 at a premium of 86.35 points over spot closing. Nifty October futures saw an addition of 0.78 million (mn) units taking the total outstanding open interest (OI) to 16.25 mn units. The near month October 2013 derivatives contract will expire on October 31, 2013.

From the most active contracts, JP Associates October 2013 futures last traded at a premium of 0.45 points at 40.05 compared with spot closing of 39.60. The number of contracts traded was 13,944.

DLF October 2013 futures were at a premium of 1.05 points at 148.15 compared with spot closing of 147.10. The number of contracts traded was 20,452. 

Yes Bank October 2013 futures last traded at a premium of 2.10 points at 343.80 compared with spot closing of 341.70. The number of contracts traded was 27,176.

Tata Steel October 2013 futures were at a premium of 0.85 points at 305.45 compared with spot closing of 304.60. The number of contracts traded was 13,078. 

Reliance Industries October 2013 futures last traded at a premium of 9.10 points at 868.25 compared with spot closing of 859.15. The number of contracts traded was 16,426.Among Nifty calls, 6,100 SP from the October month expiry was the most active call with an addition of 0.97 million open interest.

Among Nifty puts, 5,700 SP from the October month expiry was the most active put with an addition of 0.97 million open interest.

The maximum OI outstanding for Calls was at 6,100 SP (5.53mn) and that for Puts was at 5,700 SP (5.93 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6056.27 -- Pivot Point 5966.68 -- Support -- 5917.87.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.32 for October month contract. The top five scrips with highest PCR on OI were, Havells 7.50, Ultra Cemco 2.06, Siemens 1.53, Bank India 1.52 and Finan Tech 1.78.

Among most active underlying, Infosys witnessed addition of 0.18 million of Open Interest in the October month futures contract followed by State Bank of India with an addition of 0.11 million Open Interest in the near month contract; United Spirits witnessed addition of 0.22 million of Open Interest in the October month futures. Reliance Industries witnessed contraction of 0.06 million in Open Interest in the October month contract and Yes Bank witnessed an addition of 0.71 million in Open Interest in the near month futures contract.