Nifty ends mildly higher ahead of Infosys results, IIP data

Nifty ended slightly higher above 6,000 levels on Thursday in a volatile session, as investors remained cautious ahead of Infosys second quarter earnings and IIP data, which will be released tomorrow. However, firm trend in the Asian region and a higher opening in Europe amid signs that US lawmakers may agree on a compromise deal to avoid an unprecedented default, fuelled the uptrend.

A bout of initial volatility was witnessed on street as the index, after reversing initial losses, hit its highest level in nearly three weeks. Some support come in from Planning Commission Deputy Chairman Montek Singh Ahluwalia’s statement that India’s GDP will see a turnaround in the coming quarters on account of various steps taken by the government to spur growth as well as good agricultural production. In late morning trade, Index pared earlier gains and alternately moved between positive and negative zone near the flat line, slipped in to negative terrain as the rupee weakened in early trades due to importers rushing to cover up their near term requirements ahead of the US debt payment deadline. The rupee was quoting at Rs 62.22 compared with previous close of Rs 61.88 per dollar. Investors remained concerned as the International Monetary Fund, after a day of lowering its growth forecast for India, said that the country’s fiscal deficit is expected to increase to 8.5 percent of the GDP this financial year, mainly due to the downward revision in GDP growth, depreciation of rupee and higher global oil prices.

Volatility continued on street in afternoon trade as the Index trimmed losses and regained positive terrain as higher opening of European stocks boosted sentiment. In last leg of trade, index ended a tepid session on a positive note as some buying activity emerged in frontline stocks in last half an hour of trade. Meanwhile, recovery of Indian currency from day’s low point rescued the Index from a negative close.

NSE sectoral indices made a green closing. CNX Auto up by 1.82%, CNX PSU Bank up by 0.86%, CNX Metal 0.58%, CNX Realty up by 0.53% and CNX IT up by 0.46%. On the other hand, CNX Bank down by 0.45%, CNX Finance down by 0.21%, CNX FMCG down by 0.03% and CNX Media down by 0.03% were the losers.

The India VIX increased by 0.03 % at 25.88 as compared to its previous close of 25.87 on Wednesday. The 50-share CNX Nifty inclined by 13.50 points or 0.22% to settle at 6,020.95.

Nifty October 2013 futures closed at 6059.80 on Thursday at a premium of 38.85 points over spot closing of 6,020.95, while Nifty November 2013 futures ended at 6105.35 at a premium of 84.40 points over spot closing. Nifty October futures saw an addition of 0.59 million (mn) units taking the total outstanding open interest (OI) to 16.85 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 0.95 points at 150.05 compared with spot closing of 149.10. The number of contracts traded was 14,857.

Tata Motors October 2013 futures were at a discount of 0.20 points at 373.65 compared with spot closing of 373.85. The number of contracts traded was 22,448. 

Tata Steel October 2013 futures were at a premium of 2.95 points at 310.75 compared with spot closing of 307.80. The number of contracts traded was 13,951. 

Yes Bank October 2013 futures last traded at a premium of 3.30 points at 344.70 compared with spot closing of 341.40. The number of contracts traded was 19,611.

Reliance Industries October 2013 futures last traded at a premium of 6.30 points at 867.30 compared with spot closing of 861.00. The number of contracts traded was 14,601.

Among Nifty calls, 6,100 SP from the October month expiry was the most active call with contraction of 0.32 million open interest.

Among Nifty puts, 5,700 SP from the October month expiry was the most active put with an addition of 0.21 million open interest.

The maximum OI outstanding for Calls was at 6,100 SP (5.21mn) and that for Puts was at 5,700 SP (6.15 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6043.33 -- Pivot Point 6011.57-- Support -- 5989.18.

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 5.33, Finan Tech 1.50, Bank India 1.49, Ultra Cemco 1.40,and  Jindal Steel  1.36.

Among most active underlying, SBI witnessed contraction of 0.13 million of Open Interest in the October month futures contract followed by United Spirits with an addition of 0.08 million Open Interest in the near month contract; Reliance Industries witnessed addition of 0.49 million of Open Interest in the October month futures. Yes Bank witnessed an addition of 0.03 million in Open Interest in the October month contract and ICICI Bank witnessed an addition of 0.37 million in Open Interest in the near month futures contract.