Nifty snaps 2-day losing streak, ends above 6,200 level

After a subdued performance in the month of November, the Nifty has bounced back and hit its highest level since November 5 above 6,200 level. Nifty made a gap-up opening with its 6,250 bastions, after exit polls suggested a strong showing for the key opposition party in state elections held since November. Results for state elections are due on Sunday. Confirmation of a strong showing by the opposition Bharatiya Janata Party would bolster the chances of victory in general elections due by May. Some support also came in from currency front, as the rupee reached to its strongest level against the dollar in a month. Rally in oil and gas counter too supported the sentiments, as the Paris-based International Energy Agency has said that India would be the largest single source of growth in global oil demand after 2020.  Firmness continued on street in  late morning amid buying witnessed in banking, capital goods and realty stocks .Meanwhile, telecom stocks viz. Idea Cellular, Bharti Airtel and Reliance Communication all edged higher after the Cellular Operators Association of India (COAI) said that GSM mobile operators added 16.6 lakh new subscribers in rural areas in October to take the overall base in such areas to 27.43 crore. 

However, selling was witnessed on lower level in selected stock in noon trade after Moody Investors Service, while retaining its stable outlook of India’s lowest investment grading, warned that country’s could be downgraded if the government adopts policies that harm fiscal and growth scenario. Additionally, investors also booked portion of their profit after no business could be transacted on the first day of Parliament's Winter Session, as the opposition strongly opposed the centre's move to bring the Anti-Communal Violence Bill among other important legislations. Meanwhile,  European shares fell for a fourth straight day to trade near a seven-week low early on Thursday, with investors taking some money off the table before central bank rate decisions and Friday's crucial US jobs data. Although the Bank of England and the European Central Bank are likely to hold off any fresh policy action later in the day, the ECB's new economic forecasts will be in focus for signs of prolonged price weakness that could lead it to act again next year. In last of trade, lack of buying interest took index ending near day’s lowest point below 6,250 levels.

NSE sectoral indices made a green closing; CNX Bank up by 4.56%, CNX Finance up by 3.82%, CNX PSU Bank up by 2.68%, CNX Infra up by 2.37% and CNX Service up by 1.98% were the top gainers on index. On the other hand, CNX Media down by 2.09%, CNX Pharma down by 1.31%, CNX FMCG down by 1.04% and CNX Infra down by 0.47% were the top losers on index. The India VIX decreased by 8.56% at 21.68 as compared to its previous close of 23.71 on Wednesday. The 50-share CNX Nifty increased by 80.15 points or 1.30% to settle at 6,241.10.

Nifty December 2013 futures closed at 6279.95 on Thursday at a premium of 38.85 points over spot closing of 6,241.10, while Nifty January 2014 futures ended at 6335.00 at a premium of 93.90 points over spot closing. Nifty December futures saw an addition of 0.90 million (mn) units taking the total outstanding open interest (OI) to 19.03 mn units. The near month December 2013 derivatives contract will expire on December 26, 2013.

From the most active contracts, Power Grid Corporation of India December 2013 futures last traded at a discount of 3.20 points at 92.80 compared with spot closing of 96.00. The number of contracts traded was 24,019.

DLF December 2013 futures were at a premium of 1.20 points at 156.35 compared with spot closing of 155.15. The number of contracts traded was 12,899. 

IDFC December 2013 futures were at a premium of 0.95 points at 113.50 compared with spot closing of 112.55. The number of contracts traded was 12,562. 

Reliance Industries December 2013 futures were at a premium of 5.60 points at 876.00 compared with spot closing of 870.40. The number of contracts traded was 16,433. 

Yes Bank December 2013 futures were at a premium of 3.05 points at 396.90 compared with spot closing of 393.85. The number of contracts traded was 25,712.  Among Nifty calls, 6,500 SP from the December month expiry was the most active call with an addition of 0.62 million open interest.

Among Nifty puts, 6,000 SP from the December month expiry was the most active put with contraction of 0.81 million in open interest.

The maximum OI outstanding for Calls was at 6,500 SP (5.78 mn) and that for Puts was at 6,000 SP (4.86 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6283.77-- Pivot Point 6257.88- Support -- 6215.22.The Nifty Put Call Ratio (PCR) OI wise, stood at 1.04 for December month contract. The top five scrips with highest PCR on OI were, DR Reddy 1.30, Tata Steel 1.25, Power Grid 1.09, ICICI Bank 1.03, and SBI 0.98.

Among most active underlying, United Spirits witnessed an addition of 0.02 million in Open Interest in the December month futures contract followed by SBI with contraction of 0.18 million of Open Interest in the near month contract; Power Grid witnessed an addition of 16.41 million of Open Interest in the December month futures. Reliance Industries witnessed contraction of 0.51 million in Open Interest in the December month contract and TCS witnessed an addition of 0.07 million in Open Interest in the near month futures contract.