Nifty closes at 6299 level on heavy buying in bluechips

Nifty closed at 6299 levels on heavy buying in bluechips led by consumer durables and banks as attractive earnings triggered a new wave of optimism. The gains came on the back of heavy volumes, amid expiry of monthly derivative contracts. 

Nifty edged lower in earlier trades as investors remained on sidelines on the day of expiry of long and heavy October month’s F&O series. Global cues too remained weak with the US markets ending lower after getting some weak economic numbers, though as expected the Fed maintained its asset purchases at $85 billion a month but its statement with the policy were less dovish and excluded any reference to the recent government shutdown. Sentiments also remained dampened after the rupee weakened in early trade due to dollar demand from importers on the last day of the month. In late morning trade, index pared losses and traded in a narrow range amid volatility, but managed to keep their heads tad above water in afternoon session as buying was witnessed in consumer durables, capital goods and metal stocks.  Investor’s sentiments got some support after Reserve Bank Governor Raghuram Rajan said that India now is in a better position to face the US Federal Reserve’s unwinding of its easy money policy whenever it takes place. The data for two important indicators -- fiscal deficit and core sector -- for the month of September to be released today made the markets edgy.  

In the afternoon trade, index gained more strength, and traded near day’s highest point on account buying activity by traders in frontline counters. The sentiments also got support on data which showed that foreign investors were net buyers for a 19th consecutive session on Wednesday, bringing their total buying to nearly Rs 16,000 crore. Hectic activity was noticed in oil marketing companies like HPCL, BPCL and IOC after the Kirit Parikh report asked the government to free up diesel prices and not to tinker with the current pricing policy.

In last leg of trade, buying emerged which helped index to end the last day of Futures & Options expiry of October month in a great style, near psychological level of 6,300 led by public sector banks such as State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Union Bank of India etc, which edged higher on hopes of stabilizing asset quality and valuations.

NSE sectoral indices made a green closing. CNX PSU Bank up by 7.40%, CNX Bank up by 1.99% , CNX Metal up by 1.73% , CNX Energy up by 1.55% and CNX PSE up by 1.37%. On the other hand, CNX Pharma down by 1.44% there was losers on index.

The India VIX decreased by 5.83% at 1.14 as compared to its previous close of 19.53 on Wednesday. The 50-share CNX Nifty inclined by 47.45 points or 0.76% to settle at 6,299.15.

Nifty November 2013 futures closed at 6331.30 on Thursday at a premium of 32.15 points over spot closing of 6299.15, while Nifty December 2013 futures ended at 6368.50 at a premium of 69.35 points over spot closing. Nifty November futures saw an addition of 4.17 million (mn) units taking the total outstanding open interest (OI) to 23.02 mn units. The near month November 2013 derivatives contract will expire on November 28, 2013.

From the most active contracts, Yes Bank November 2013 futures last traded at a premium of 3.55 points at 372.55 compared with spot closing of 369.00. The number of contracts traded was 18,172.

SBI November 2013 futures were at a premium of 9.40 points at 1805.40 compared with spot closing of 1796.00. The number of contracts traded was 47,229. 

ICICI Bank November 2013 futures were at a premium of 4.15 points at 1127.10 compared with spot closing of 1122.95. The number of contracts traded was 25,445. 

Bank of India November 2013 futures were at a discount of 0.05 points at 211.90 compared with spot closing of 211.95. The number of contracts traded was 20,970.

.Among Nifty calls, 6,300 SP from the November month expiry was the most active call with an addition of 0.98 million open interest.

Among Nifty puts, 6,200 SP from the November month expiry was the most active put with an addition of 7.03 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (2.75 mn) and that for Puts was at 6,200 SP (2.88 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 November month contract. The top five scrips with highest PCR on OI were, Grasim 5.50, Divislab 2.00, ACC 1.67, Infosys 1.30, and Tata Chemical 1.25.

Among most active underlying, SBI witnessed contraction of 1.07 million of Open Interest in the November month futures contract followed by Infosys with contraction of 0.40 million of Open Interest in the near month contract; United Spirits witnessed contraction of 0.72 million of Open Interest in the November month futures. Reliance Industries witnessed contraction of 0.95 million in Open Interest in the November month contract and ICICI Bank witnessed contraction of 1.07 million in Open Interest in the near month futures contract.