Nifty ends above 6,200 on GDP & PMI data

Nifty, prolonging its gaining streak for third consecutive session, closed above 6200 psychological mark on better than expected GDP and PMI data, suggesting that there were some green shoots for the economy. Nifty edged higher with its crucial 6,200 levels in early deals after Indian economy grew at a higher-than expected 4.8 percent in the September quarter, on the back of improvement in farm and construction sector output. Sentiments also remained up-beat on report that suggested of foreign investors, continuing its buying spree for the third straight month, by investing net Rs 8,000 crore in Indian stocks in November. Meanwhile, October factory output data also led to some cheers. The HSBC Purchasing Managers’ Index (PMI) snapped its three consecutive months’ declining streak and climbed to 51.3 in November from 49.6 in the previous month, mainly led by the rise in new domestic orders. Meanwhile, the across the board buying activity was mainly led by gains in healthcare, banking and capital goods stocks.  Rally in sugar stocks like Balrampur Chini, Shree Renuka Sugar, Rana sugar etc in the intra-day trade too supported the sentiments, as the price deadlock was resolved and millers in Uttar Pradesh agreed to pay Rs 280 per quintal of sugarcane, they will pay Rs 260 per quintal in 15 days and another Rs 20 by the end of the crushing season.

Firmness continued on street in early afternoon trade mainly on account of continued buying in banking stocks after the Reserve Bank of India (RBI) on November 29 2013, underscored that commercial banks will now have the option to pay interest on savings accounts and term deposits at intervals shorter than quarterly intervals. Pharma stocks too rose after the Union Cabinet on November 29, 2013, decided that the current policy on foreign direct investment (FDI) in brownfield and greenfield projects in the pharmaceutical sector will continue subject to the additional condition that in all cases of FDI in brownfield pharma, there will not be any non-compete clause in any of the inter se agreements.  However, index witnessed some amount of capitulation during the late afternoon deals, again picked up momentum in the fag end of the trade and settled above the psychological 6,200 level with gains of over half a percent. Some support  came in from currency front where Indian rupee rose to a near two-week high against the dollar, as worries about the economy eased after a private survey showed the country’s manufacturing sector returned to growth last month. Rally in shares of oil marketing companies too aided the sentiments. BPCL, HPCL and IOC all edged higher with the diesel price hike. The government on November 30 hiked diesel prices by 50 paise per litre, while the petrol prices were kept unchanged.

NSE sectoral indices made a green closing; CNX Pharma up by 2.04%, CNX Media up by 1.85%, CNX Infra up by 1.26%, CNX Metal up by 1.20% and CNX Bank up by 1.17% were the gainers on index. On the other hand, CNX PSE down by 0.23%, and CNX Energy up by 0.22%, were the only losers on index. The India VIX increased by 9.26% at 23.36 as compared to its previous close of 21.38 on Friday. The 50-share CNX Nifty increased by 41.75 points or 0.68 % to settle at 6,217.85.

Nifty December 2013 futures closed at 6263.75 on Monday at a premium of 45.90 points over spot closing of 6,217.85, while Nifty January 2014 futures ended at 6318.40 at a premium of 100.55 points over spot closing. Nifty December futures saw an addition of 0.29 million (mn) units taking the total outstanding open interest (OI) to 18.47 mn units. The near month December 2013 derivatives contract will expire on December 26, 2013.

From the most active contracts, JP Associates December 2013 futures last traded at a premium of 0.70 points at 54.50 compared with spot closing of 53.80. The number of contracts traded was 11,251.

Power Grid Corporation of India December 2013 futures were at a discount of 1.85 points at 91.80 compared with spot closing of 93.65. The number of contracts traded was 19,042. 

Tata Motors December 2013 futures were at a premium of 3.45 points at 403.45 compared with spot closing of 400.00. The number of contracts traded was 11,292. 

Tata Steel December 2013 futures were at a premium of 4.25 points at 412.05 compared with spot closing of 407.80. The number of contracts traded was 19,127. 

Reliance Industries December 2013 futures were at a premium of 7.85 points at 862.75 compared with spot closing of 854.90. The number of contracts traded was 13,588 

Among Nifty calls, 6,500 SP from the December month expiry was the most active call with an addition of 0.54 million open interest.

Among Nifty puts, 6,000 SP from the December month expiry was the most active put with an addition of 0.06 million in open interest.

The maximum OI outstanding for Calls was at 6,500 SP (4.67 mn) and that for Puts was at 6,000 SP (5.33 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6240.65-- Pivot Point 6154-- Support -- 6183.1.The Nifty Put Call Ratio (PCR) OI wise, stood at 1.10 for December month contract. The top five scrips with highest PCR on OI were, Mcleodruss 3.50, DR Reddy 2.27, HDFC 1.23, IOC 1.18, and Power Grid 1.18.

Among most active underlying, United Spirits witnessed marginal contraction in  Open Interest in the December month futures contract followed by SBI with an addition of 0.16 million of Open Interest in the near month contract; Reliance Industries witnessed an addition of 0.26 million of Open Interest in the December month futures. ICICI Bank witnessed an addition of 0.29 million in Open Interest in the December month contract and TCS witnessed contraction of 0.06 million in Open Interest in the near month futures contract.