Iran N-deal lifts D-Street sentiment; Nifty ends above 6100 levels

On the first day of the week, Nifty was on fire and closed above 6100 level, courtesy US-Iran 'peace deal' on the nuclear issue. Snapping three days of continues fall, Nifty  made a gap-up opening with its crucial 6,050 levels as Asian stocks rose after the US and five other world powers reached an historic agreement with Iran on Sunday, November 24 2013, that would roll back Iran's nuclear program. Firmness continued on street in late morning. Sentiments got boosted as the rupee was trading strong in morning trade due to dollar sale by exporters and banks. The Indian currency was trading at Rs 62.48 compared with Friday's close of Rs 62.83 per dollar. Sentiments remained jubilant on E&Y’s report that India has emerged as the most attractive investment destination surpassing neighbouring China and the US, due to relaxation in FDI norms to boost investor sentiments. Some support also came in from rally in pharma and realty sector, as the Cabinet is expected to take a decision on relaxing FDI norms for the housing sector and reducing foreign direct investment cap to 49 percent in critical areas of the pharma segment.

Index maintained its strong momentum in noon trades supported by financials, capital goods, FMCG and oil & gas stocks. Speculations that falling oil prices will cool inflation after Iran agreed to limit its nuclear program in exchange for relief from some sanctions has mainly triggered massive buying activities at Dalal Street. Additionally, while on one hand, telecom stocks rang-off after high-power ministerial panel approved the recommendation of the Telecom Commission to better regulator Telecom Regulatory Authority of India’s (TRAI) suggested reserve or base price for the auction of spectrum in the 1800 MHz and 900 MHz bands, used by GSM operators such as Bharti Airtel and Vodafone. Meanwhile, Reserve Bank of India’s conditional extension of deadline for bank’s special forex window till December 31, bolstered sentiment not only for the currency, but also banking stocks. Sudden spurt in the last hour of trade sent the index near day’s highest point, above the crucial 6,100 levels.

NSE sectoral indices made a green closing; CNX IT down by 0.02% was the loser on index. On the other hand, CNX Bank up by 3.80%, CNX PSU Bank up by 3.77%, CNX Finance up by 3.50%, CNX Realty up by 2.53% and CNX Infra up by 2.18% were the gainers on index.

The India VIX increased by 5.03% at 21.05 as compared to its previous close of 20.04 on Friday. The 50-share CNX Nifty increased by 119.90 points or 2.00% to settle at 6,115.35.

Nifty November 2013 futures closed at 6133.90 on Monday at a premium of 18.55 points over spot closing of 6,115.35, while Nifty December 2013 futures ended at 6182.95 at a premium of 67.60 points over spot closing. Nifty November futures saw contraction of 1.54 million (mn) units taking the total outstanding open interest (OI) to 12.29 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 0.10 points at 149.60 compared with spot closing of 149.50. The number of contracts traded was 18,910.

Yes Bank November 2013 futures were at a premium of 2.45 points at 352.40 compared with spot closing of 349.95. The number of contracts traded was 32,934. 

ICICI Bank November 2013 futures were at a premium of 2.85 points at 1076.70 compared with spot closing of 1073.85. The number of contracts traded was 28,813. 

Reliance Industries November 2013 futures were at a premium of 3.90 points at 854.80 compared with spot closing of 850.90. The number of contracts traded was 19,299. 

Larsen &Toubro November 2013 futures were at a premium of 3.35 points at 1006.80 compared with spot closing of 1003.45. The number of contracts traded was 19,841.Among Nifty calls, 6,200 SP from the November month expiry was the most active call with contraction of 0.31 million open interest.

Among Nifty puts, 6,000 SP from the November month expiry was the most active put with an addition   of 1.23 million open interest.

The maximum OI outstanding for Calls was at 6,200 SP (5.74 mn) and that for Puts was at 6,000 SP (7.18 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6147.25-- Pivot Point 6091.6-- Support -- 6059.7.The Nifty Put Call Ratio (PCR) OI wise, stood at 1.02 for November month contract. The top five scrips with highest PCR on OI were, Tata Steel 1.67, Grasim 1.56,  Auro Pharma 1.38, L&T 1.14 and Adanient 1.07.

Among most active underlying, SBI witnessed contraction of 0.83 million of Open Interest in the November month futures contract followed by United Spirits with contraction of 1.97 million of Open Interest in the near month contract; Reliance Industries witnessed contraction of 1.55 million of Open Interest in the November month futures. ICICI Bank witnessed contraction of 0.74 million in Open Interest in the November month contract and TCS witnessed contraction of 0.69 million in Open Interest in the near month futures contract.