Nifty ends above 6100 level led by IT, Banking

Nifty closed above 6100 level in a volatile session ahead of Reliance earnings as appetite for IT stocks prevailed over poor inflation and industrial production data. A bout of initial volatility was witnessed on street after some initial jitters and the Index gained strength surpassing the 6,100 level by buying in software and technology counters after upbeat results by bellwether Infosys last week boosted confidence. Market sentiments remained high as Finance Minister P Chidambaram questioned IMF’s low growth projection of 3.8 percent for India for the current fiscal and said that the government will not hesitate to take difficult decisions to contain fiscal and current account deficits. Sentiments also got some support as data showed foreign funds remained net buyers of Indian stocks on Friday, October 11, 2013. Foreign institutional investors (FIIs) bought shares worth a net of Rs 1010.45 crore on Friday, October 11, 2013, as per provisional data from the stock exchanges.

Volatility continued as Index trimmed gains after hitting its highest level in more than three weeks in late morning trade. Gains on the up-side remained capped as investors remained on the sidelines ahead of Inflation data for September, as measured by the wholesale price index (WPI) and the consumer price index (CPI), are due to be released today. Some cautiousness also crept in on the back of lower than expected IIP numbers of August, which were announced late Friday and came at a meager 0.6% versus a promising 2.8% in July. Meanwhile, Indian rupee lost some ground in early deals ahead of the Thursday’s deadline for the US debt ceiling. 

In the early afternoon trade, the index after reversing intraday gains, stabilised despite data on inflation based on the wholesale price index (WPI) accelerated to a seven-month in September 2013. In the last leg of trade, index managed to close above 6,100 mainly on buying witnessed in banking stocks after Reserve Bank of India’s (RBI) governor, Raghuram Rajan announced big reforms in the offing for the banking sector. He said that RBI will soon come out with major reforms in the banking sector that will allow foreign banks to enter India in a big way and even take over domestic lenders

NSE sectoral indices made a green closing. CNX IT up by 2.16%,  CNX PSU Bank up by 0.78%, CNX Service 0.75%, CNX Bank up by 0.41% and CNX Auto up by 0.33%. On the other hand, CNX Metal down by 0.75%, CNX FMCG down by 0.65%, CNX Consumption down by 0.44%, CNX MNC down by 0.43%, CNX Pharma down by 0.38% and CNX PSE down by 0.35% were the losers.

The India VIX decreased by 3.14 % at 22.85 as compared to its previous close of 23.59 on Friday. The 50-share CNX Nifty inclined by 16.50 points or 0.27% to settle at 6,112.70.

Nifty October 2013 futures closed at 6143.35 on Monday at a premium of 30.65 points over spot closing of 6,112.70, while Nifty November 2013 futures ended at 6191.25 at a premium of 78.55 points over spot closing. Nifty October futures saw an addition of 0.43 million (mn) units taking the total outstanding open interest (OI) to 18.26 mn units. The near month October 2013 derivatives contract will expire on October 31, 2013.

From the most active contracts, Tata Motors October 2013 futures last traded at a premium of 1.85 points at 393.25 compared with spot closing of 391.40. The number of contracts traded was 15,636.

Yes Bank October 2013 futures last traded at a premium of 3.60 points at 350.85 compared with spot closing of 347.25. The number of contracts traded was 16,773.

Karnataka Bank October 2013 futures were at a premium of 1.30 points at 109.60 compared with spot closing of 108.30. The number of contracts traded was 20,051. 

Reliance Industries October 2013 futures last traded at a premium of 2.80 points at 876.85 compared with spot closing of 874.05. The number of contracts traded was 19,469.

ICICI Bank October 2013 futures were at a premium of 2.20 points at 1000.20 compared with spot closing of 998.00. The number of contracts traded was 17,100. 

Among Nifty calls, 6,300 SP from the October month expiry was the most active call with an addition of 0.28 million open interest.

Among Nifty puts, 5,700 SP from the October month expiry was the most active put with an addition of 0.19 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (4.42mn) and that for Puts was at 5,700 SP (5.60 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6130.23-- Pivot Point 6106.57-- Support -- 6089.03.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.30 for October month contract. The top five scrips with highest PCR on OI were, Havells 3.78, Tata Motors 1.86,Finan Tech 1.48, Jindal Steel 1.38, and Ultra Cemco 1.35.

Among most active underlying, SBI witnessed  marginal contraction in Open Interest in the October month futures contract followed by Reliance Industries with an addition of 0.25 million Open Interest in the near month contract; United Spirits witnessed contraction of 0.03 million of Open Interest in the October month futures. ICICI Bank witnessed an addition of 0.10 million in Open Interest in the October month contract and Yes Bank witnessed contraction of 0.09 million in Open Interest in the near month futures contract.