Nifty records highest single-day gains in a month

Nifty continued with its upward journey for second straight session and closed near 6,200 mark led by massive buying in rate-sensitive sectors. Meanwhile, the Indian rupee strengthened against the US dollar, as the greenback weakened against other emerging market currencies. The partially convertible rupee closed at 62.40, up 71 paise, against its previous close of 63.11.

Nifty made a gap-up opening in early trades tracking gains in Asia on encouraging stance from the US Fed plans to continue its monetary stimulus measures coupled with bold economic reforms unveiled by China. Market extended gains and continued its firm trade in late morning mainly buying witnessed in rate sensitives after the RBI governor said that several factors, besides inflation, will determine the stance of its policy review. Traders were also getting support with the strength in rupee against dollar, which moved higher on RBI’s announcement of purchasing bonds worth Rs 8,000 crore this week under the open market operations (OMO) to inject liquidity in the system. The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 14 November 2013. Foreign institutional investors (FIIs) bought shares worth net Rs 970.03 crore on Thursday, 14 November 2013, as per provisional data from the stock exchanges. 

In afternoon trade, the benchmark trimmed minor gains but continued to trade in green on account of profit booking in frontline counters. However, the market took note of Economic Affairs Secretary Arvind Mayaram's statement that the government is taking measures to give momentum to the growth process, which was affected by the global financial crisis in 2008. In last leg of trade, index extended gains and managed to close just below 6200 level.

NSE sectoral indices made a green closing; CNX Bank up by 3.06%, CNX PSU Bank up by 3.03%, CNX Finance up by 2.91%, CNX FMCG up by 2.79%, CNX Realty up by 2.72% were the gainers on index. While there were no loser on index.

The India VIX decreased by 2.28 % at 18.82 as compared to its previous close of 19.26 on Thursday. The 50-share CNX Nifty increased by 132.85 points or 2.19% to settle at 6,189.00.

Nifty November 2013 futures closed at 6217.05 on Monday at a premium of 28.05 points over spot closing of 6189.00, while Nifty December 2013 futures ended at 6267.90 at a premium of 78.90 points over spot closing. Nifty November futures saw contraction of 0.39 million (mn) units taking the total outstanding open interest (OI) to 17.59 mn units. The near month November 2013 derivatives contract will expire on November 28, 2013.

From the most active contracts, JP Associates November 2013 futures last traded at a premium of 0.15 points at 48.60 compared with spot closing of 48.45. The number of contracts traded was 10,499.

Tata Steel November 2013 futures were at a premium of 0.35 points at 388.05 compared with spot closing of 387.70. The number of contracts traded was 18,628. 

Tata Motors November 2013 futures were at a premium of 1.00 points at 393.00 compared with spot closing of 392.00. The number of contracts traded was 17,106. 

Yes Bank November 2013 futures were at a premium of 1.35 points at 365.30 compared with spot closing of 363.95. The number of contracts traded was 14,023. 

Ranbaxy Laboratories November 2013 futures were at a premium of 3.25 points at 430.95 compared with spot closing of 427.70. The number of contracts traded was 11,425. 

Among Nifty calls, 6,400 SP from the November month expiry was the most active call with an addition of 0.93 million open interest.

Among Nifty puts, 6,000 SP from the November month expiry was the most active put with an addition  of 0.55 million open interest.

The maximum OI outstanding for Calls was at 6,400 SP (5.10 mn) and that for Puts was at 6,000 SP (5.65 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6220.4-- Pivot Point 6165.4-- Support -- 6134.The Nifty Put Call Ratio (PCR) OI wise, stood at 1.08 for November month contract. The top five scrips with highest PCR on OI were, Grasim 1.79, Tata Steel 1.53, Auro Pharma 1.47, Infosys 1.41 and Divislab 1.27 .

Among most active underlying, SBI witnessed an addition of 0.01 million of Open Interest in the November month futures contract followed by United Spirits with an addition of 0.05 million of Open Interest in the near month contract; Reliance Industries witnessed contraction of 0.42 million of Open Interest in the November month futures. ICICI Bank witnessed an addition of 0.21 million in Open Interest in the November month contract and TCS witnessed contraction of 0.18 million in Open Interest in the near month futures contract.