Nifty closes above 6,250 levels on speculation US Fed would maintain monetary stimulus

Nifty closed above 6,250 levels on heavy foreign fund inflows in bluechips, amid speculation that the US Fed would maintain its monetary stimulus when they conclude a meeting today. Nifty edged higher and hit its highest level in more than 35 months in early trade as Asian stocks on speculation that Federal Reserve policy makers won't announce any major changes to monetary stimulus when they conclude a meeting today, October 30, 2013. A bout of volatility was witnessed as index recovered from lower levels after giving away almost entire initial gains in late morning trade as domestic investor’s sentiments also remained up-beat after the stock exchanges, in consultation with market watchdog Securities and Exchange Board of India (SEBI), have decided to ease the norms to retain up to Rs 10,000 in trading accounts of active customers based on representations received from investors and members. However, gains on the up-side remained capped after the rupee depreciated against the US dollar in early trades and was trading at Rs 61.49 compared to its previous close of Rs 61.32. Some cautiousness also crept in after India Inc raised apprehension saying that hike in key interest rate by the Reserve Bank of India will hit the already weak investment momentum and impact India’s economic growth. In the early afternoon trade, index continued to move in a narrow range in positive zone on account of buying in frontline counters and taking cues from European counterparts. In last leg of trade, index edged higher and closed above 6,250 levels.

NSE sectoral indices made a green closing. CNX Pharma up by 1.30%, CNX FMCG up by 1.18% , CNX Infra up by1.07% , CNX Service up by 0.54% and CNX Finance up by 0.53% .On the other hand, CNX PSU Bank down by 1.57% there was losers on index.

The India VIX decreased by 1.16% at 19.53 as compared to its previous close of 19.76 on Tuesday. The 50-share CNX Nifty inclined by 30.80 points or 0.50% to settle at 6,251.70.

Nifty October 2013 futures closed at 6250.90 on Wednesday at a discount of 0.80 points over spot closing of 6251.70, while Nifty November 2013 futures ended at 6300.70 at a premium of 49.00 points over spot closing. Nifty October futures saw contraction of 1.87 million (mn) units taking the total outstanding open interest (OI) to 10.95 mn units. The near month October 2013 derivatives contract will expire on October 31, 2013.

From the most active contracts, Yes Bank November 2013 futures last traded at a premium of 3.75 points at 375.30 compared with spot closing of 371.55. The number of contracts traded was 15,640.

Bharti Airtel October 2013 futures were at a premium of 0.70 points at 359.90 compared with spot closing of 359.20. The number of contracts traded was 28,685. 

Yes Bank October 2013 futures were at a premium of 0.30 points at 371.85 compared with spot closing of 371.55. The number of contracts traded was 27,836. 

ICICI Bank November 2013 futures were at a premium of 5.15 points at 1105.15 compared with spot closing of 1100.00. The number of contracts traded was 15,774. 

ICICI Bank October 2013 futures last traded at a discount of 2.50 points at 1097.50 compared with spot closing of 1100.00. The number of contracts traded was 30,337.Among Nifty calls, 6,300 SP from the October month expiry was the most active call with contraction of 1.08 million open interest.

Among Nifty puts, 6,000 SP from the October month expiry was the most active put with an addition of 1.88 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (5.83 mn) and that for Puts was at 6,000 SP (6.25 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6273.07-- Pivot Point 6247.83-- Support --6226.47.The Nifty Put Call Ratio (PCR) OI wise, stood at 1.73 for October month contract. The top five scrips with highest PCR on OI were, L&T 1.91, IOB 1.82, Siemens 1.73, Ultra Cem Co 1.70, and Axis Bank 1.64.

Among most active underlying, SBI witnessed contraction of 1.16 million of Open Interest in the October month futures contract followed by Reliance Industries with contraction of 1.16million of Open Interest in the near month contract; United Spirits witnessed contraction of 1.21 million of Open Interest in the October month futures. ICICI Bank witnessed contraction of 1.30 million in Open Interest in the October month contract and Yes Bank witnessed contraction of 3.94 million in Open Interest in the near month futures contract.