Nifty near 3-yr high; closes above 6,200 mark

Nifty shed intraday losses in the last half an hour of trade and closed comfortably above psychological 6,200 for the first time since November 2010. Capital goods stocks were star of the day with L&T leading the pack with a gain of 6 percent on good September quarter results.

Nifty edged higher in early trade tracking bullish trend on Wall Street, on expectations that the US Fed would postpone its monetary stimulus measures following the recent government shutdown. Investor’s sentiments remained up-beat on Planning Commission Deputy Chairman Montek Singh Ahluwalia’s statement that Current Account Deficit is likely to be lower than the projection of 3.8 percent of the GDP and India will be in a better position to neutralise the impact of the tapering of monetary stimulus by the US Fed. Some boost also came in after Reserve Bank of India (RBI) said that it has no immediate plan to close the dollar-swap window for oil companies and it will be done in a calibrated manner. A bout of volatility was witnessed on street as index failed to maintain earlier 22-week high levels and turned down to intraday lows in the negative zone in late morning trade on back of slight profit-taking in the software sector amid caution ahead of the US Federal Reserve policy meeting and RBI policy review next week. Investor’s sentiments got dampened as the rupee opened negative this morning on back of month-end dollar demand by the importers. The partially convertible rupee was trading at 61.52 per dollar against the Friday’s close of 61.27 on the Interbank Foreign Exchange.

Volatility continued on street in afternoon trades, index extended intraday losses as the European markets traded lower in early deals with CAC, DAX and FTSE all exhibiting choppy trade in early deals. There was some buying in the last leg of trade that barely managed to take the index in green and managed to extend their gaining streak.

NSE sectoral indices made a green closing. CNX Realty up by 3.95%, CNX Media up by 3.41%, CNX Infra up 1.93%, CNX Metal up 1.84% and CNX PSU Bank up 1.24%. On the other hand, CNX FMCG down by 1.39% and CNX IT down by 0.44% were the losers on index.

The India VIX increased by 0.29% at 20.18 as compared to its previous close of 20.12 on Friday. The 50-share CNX Nifty inclined by 15.60 points or 0.25% to settle at 6,204.95.

Nifty October 2013 futures closed at 6226.15 on Monday at a premium of 21.20 points over spot closing of 6,204.95, while Nifty November 2013 futures ended at 6277.40 at a premium of 72.45 points over spot closing. Nifty October futures saw contraction of 0.31 million (mn) units taking the total outstanding open interest (OI) to 18.50 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 discount of 0.05 points at 166.60 compared with spot closing of 166.65. The number of contracts traded was 14,119.

Yes Bank October 2013 futures last traded at a premium of 1.50 points at 360.30 compared with spot closing of 358.80. The number of contracts traded was 21,575.

Tata Steel October 2013 futures were at a premium of 0.85 points at 336.90 compared with spot closing of 336.05. The number of contracts traded was 16,480. 

ICICI Bank October 2013 futures were at a premium of 7.65 points at 1015.20 compared with spot closing of 1007.55. The number of contracts traded was 18,146. 

Reliance Industries October 2013 futures were at a premium of 2.40 points at 915.40 compared with spot closing of 913.00. The number of contracts traded was 15,858. 

mong Nifty calls, 6,300 SP from the October month expiry was the most active call with an addition of 0.18 million open interest.

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

The maximum OI outstanding for Calls was at 6,300 SP (4.94 mn) and that for Puts was at 5,700 SP (5.89 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6228.17-- Pivot Point 6195.73-- Support -- 6172.52.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.59 for October month contract. The top five scrips with highest PCR on OI were, Havells 2.70, Ultra Cemco 2.21, L&T 1.66, Tata Motors 1.50 and Infosys 1.49.

Among most active underlying, Infosys witnessed contraction of 0.06 million of Open Interest in the October month futures contract followed by SBI with an addition of 0.08 million of Open Interest in the near month contract; United Spirits witnessed contraction of 0.19 million of Open Interest in the October month futures. Reliance Industries witnessed contraction of 0.39 million in Open Interest in the October month contract and Yes Bank witnessed an addition of 0.21 million in Open Interest in the near month futures contract.