Nifty manages to close above 6,200 amid whipsaw trade

Nifty closed in the positive for a third consecutive session on Tuesday at its highest closing levels above 6,200 levels in nearly two weeks, as a rally in debt markets boosted banks, the biggest holders of bonds, while sentiment remained underpinned by global factors.

A bout of volatility was witnessed on street as the Nifty edged higher and hit over 1-1/2-week high in early trade mainly buying by participants driven by the RBI's plans to inject Rs 8,000 crore into the financial system to ease liquidity. The index fell in the negative terrain very briefly to rise again as volatility continued on street. The whipsaw trade continued entire morning as Nifty fell again and recovered back from lower levels giving away initial gains. Investor’s sentiments got some support as the rupee continued to strengthen against the US dollar on hopes of strong inflows. The partially convertible rupee was at 62.16, up 24 paise, against its previous close of 62.41 per dollar. Meanwhile, some support also came in after the Economic Affairs Secretary Arvind Mayaram said that the government is taking measures to provide a boost to economic growth.

In the afternoon session, the index failed to emulate the previous sessions’ strength and traded in a range as investors seemed concerned about the release of minutes Fed's October 29-30 meeting due later in the day that may give insight on its decision to start the tapering of its bond-buying program. In the last leg of trade, index managed to close above 6,200 levels amid some optimistic buying.

NSE sectoral indices made a green closing. CNX PSU Bank up by 2.39%, CNX Realty up by 1.49%, CNX Infra up by 0.94% , CNX Bank up by 0.41% and CNX Service up by 0.39% . On the other hand, CNX FMCG down by 0.49%, CNX Pharma down by 0.28%, CNX PSE down by 0.24% and CNX Media down by 0.20% there were losers on index.The India VIX increased by 2.55% at 19.30 as compared to its previous close of 18.82 on Monday.

The 50-share CNX Nifty increased by 14.35 points or 0.23% to settle at 6,203.35.

Nifty November 2013 futures closed at 6230.5 on Tuesday at a premium of 27.15 points over spot closing of 6,203.35, while Nifty December 2013 futures ended at 6282.25 at a premium of 78.90 points over spot closing. Nifty November futures saw addition of 0.20 million (mn) units taking the total outstanding open interest (OI) to 17.79 mn units. The near month November 2013 derivatives contract will expire on November 28, 2013.

From the most active contracts, DLF November 2013 futures last traded at a premium of 0.90 points at 150.45 compared with spot closing of 149.55. The number of contracts traded was 13,175.

Hindalco Industries November 2013 futures were at a premium of 0.55 points at 124.70 compared with spot closing of 124.15. The number of contracts traded was 15,281. 

Tata Steel November 2013 futures were at a premium of 3.20 points at 385.30 compared with spot closing of 382.10. The number of contracts traded was 21,046. 

Tata Motors November 2013 futures were at a premium of 1.55 points at 392.30 compared with spot closing of 390.75. The number of contracts traded was 11,606. 

Yes Bank November 2013 futures were at a premium of 2.10 points at 365.00 compared with spot closing of 362.90. The number of contracts traded was 11,514. 

Among Nifty calls, 6,300 SP from the November month expiry was the most active call with an addition of 0.25 million open interest.

Among Nifty puts, 6,000 SP from the November month expiry was the most active put with an addition  of 0.32 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (5.14 mn) and that for Puts was at 6,000 SP (5.97 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6217.1-- Pivot Point 6198.65-- Support -- 6184.9.The Nifty Put Call Ratio (PCR) OI wise, stood at 1.14 for November month contract. The top five scrips with highest PCR on OI were, Grasim 1.64, Infosys 1.56,  Auro Pharma 1.52, Tata Steel 1.40 and Techm 1.32 .

Among most active underlying, SBI witnessed contraction of 0.04 million of Open Interest in the November month futures contract followed by United Spirits with an addition of 0.02 million of Open Interest in the near month contract; Reliance Industries witnessed contraction of 0.19 million of Open Interest in the November month futures. ICICI Bank witnessed contraction of 0.04 million in Open Interest in the November month contract and TCS witnessed an addition of 0.05 million in Open Interest in the near month futures contract.