Nifty ends above 6,050 levels amid buying in interest-rate sensitive stocks

Nifty closed above 6,050 levels buoyed by gains in interest-rate sensitive stocks after RBI announced fresh steps to boost liquidity in the banking system and on fresh hopes that US Fed will maintain its economic stimulus.

Nifty edged higher in early deals on hopes that the US Federal Reserve will continue with its loose monetary policy. Sentiments also got some support after RBI Governor Raghuram Rajan’s statement, that the current account deficit (CAD) in the current fiscal will come down to $56 billion, less than 3 percent of GDP. However, he said that the 2 percent industrial growth in September is disappointing, but hoped that the economic situation would improve in the second half of the fiscal on the back of good monsoon and exports.

Index continued its firm trade in the late morning session mainly led by rate sensitive stocks after RBI Governor Raghuram Rajan said that any change in benchmark interest rate in its next month's monetary policy review would depend upon the price situation and other macro-economic factors. Encouraging second quarter earnings announced by some companies and further recovery in the rupee against the dollar also lifted the market. However, some profit booking emerged during the noon trades after the WPI inflation numbers were announced. India's main inflation gauge, based on monthly WPI, accelerated to highest level since February at 7% for the month of October as against 6.46% (Provisional) for the previous month of September and 7.32% during the corresponding month in the previous year. In last leg of trade, Nifty came off its day’s high closed above 6,050 levels on concerns of another rate hike by RBI in view of the rising inflation.

NSE sectoral indices made a green closing; CNX Pharma down by 0.76%. On the other hand, CNX Auto up by 3.00%, CNX Bank up by 2.74%, CNX Realty up by 2.48%, CNX PSU Bank up by 2.32%, CNX Infra up by 2.31% were the gainers on index.

The India VIX decreased by 5.81% at 19.26 as compared to its previous close of 20.45 on Wednesday. The 50-share CNX Nifty increased by 66.55 points or 1.11% to settle at 6,056.15.

Nifty November 2013 futures closed at 6088.95 on Thursday at a premium of 32.80 points over spot closing of 6056.15, while Nifty December 2013 futures ended at 6141.35 at a premium of 85.20 points over spot closing. Nifty November futures saw contraction of 0.93 million (mn) units taking the total outstanding open interest (OI) to 17.98 mn units. The near month November 2013 derivatives contract will expire on November 28, 2013.

From the most active contracts, Tata Motors November 2013 futures last traded at a premium of 2.60 points at 388.35 compared with spot closing of 385.75. The number of contracts traded was 19,478.

Tata Steel November 2013 futures were at a premium of 1.55 points at 376.60 compared with spot closing of 375.05. The number of contracts traded was 39,743. 

Yes Bank November 2013 futures were at a premium of 2.00 points at 352.80 compared with spot closing of 350.80. The number of contracts traded was 22,083. 

Reliance Industries November 2013 futures were at a premium of 5.10 points at 857.00 compared with spot closing of 851.90. The number of contracts traded was 12,767. 

ICICI Bank November 2013 futures were at a premium of 5.05 points at 1057.05 compared with spot closing of 1052.00. The number of contracts traded was 24,985.

Among Nifty calls, 6,300 SP from the November month expiry was the most active call with an addition  of 0.35 million open interest.

Among Nifty puts, 6,000 SP from the November month expiry was the most active put with an addition  of 0.17 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (6.24 mn) and that for Puts was at 6,000 SP (5.09 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6092.98-- Pivot Point 6064.82-- Support -- 6027.98. The Nifty Put Call Ratio (PCR) OI wise, stood at 0.98 for November month contract. The top five scrips with highest PCR on OI were, Grasim 2.12, Auro Pharma 1.42, Infosys 1.31, Divislab 1.26, and JSW Steel 1.13.

Among most active underlying, SBI witnessed contraction of 0.13 million of Open Interest in the November month futures contract followed by United Spirits with an addition of 0.17 million of Open Interest in the near month contract; Reliance Industries witnessed contraction of 0.15 million of Open Interest in the November month futures. TCS witnessed an addition of 0.17 million in Open Interest in the November month contract and ICICI Bank witnessed contraction of 0.41 million in Open Interest in the near month futures contract.