Nifty ends above 6,250 levels ahead of poll results

Nifty extended gains for a second consecutive session to close at its highest level above 6,250 levels amid overseas capital inflows ahead of the assembly poll results.

A bout of volatility was witnessed on the street in early trades, as the Nifty made a marginally positive start, dipped in the red for a very short while and again regained positive territory. Investor sentiments were boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, December 5, 2013. Moreover, some support came in from reports that the gross direct tax receipts of the government in April-November period this year rose by 13.18% from a year ago to Rs 3.7 lakh crore. Rally in PSU oil marketing companies too supported the sentiments. Stocks like BPCL and IOC edged higher in early deals after diesel demand has declined this fiscal as monthly price hikes and increased power generation clipped consumption of  India’s most consumed fuel. Minor selling was seen on the street in late morning as global ratings agency Moody’s cautioned that there could be downward pressure on India's sovereign rating if growth weakens further and high inflation persists.

Volatility continued on street in noon trades as paring all its gains nifty was trading near day’s lowest point. Mostly negative global cues, combined with prevailing caution ahead of the US monthly jobs data and lack of positive domestic triggers made investors watchful about maintaining long positions. However, investors seemed to draw some solace from Prime Minister Singh’s statement, which highlighted that the India’s growth rate had more than doubled to an annual average of over seven percent and the economy was on an upward trajectory in the last 20 years.

Nevertheless, in the last leg of trade, buying picked up momentum where investors in anticipation of positive news, preferred going long on risk equities. Thus, by the close of trade, Nifty clinched gains of close to half a percent and settled above 6,250 levels respectively. On the back of last two sessions’ gains, Nifty clocked gains of close to a percent.

NSE sectoral indices made a green closing; CNX Media up by 1.63%, CNX PSE up by 1.32%, CNX PSU Bank up by 1.21%, CNX Infra up by 1.17% and CNX Energy up by 0.89% were the top gainers on index. On the other hand, CNX MNC down by 0.23%, CNX Finance down by 0.21% and CNX IT by 0.08% 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 Thursday. The 50-share CNX Nifty increased by 18.80 points or 0.30% to settle at 6,259.90.

Nifty December 2013 futures closed at 6303.75 on Friday at a premium of 43.85 points over spot closing of 6,259.90, while Nifty January 2014 futures ended at 6356.20 at a premium of 96.30 points over spot closing. Nifty December futures saw an addition of 0.47 million (mn) units taking the total outstanding open interest (OI) to 19.51 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 3.75 points at 95.10 compared with spot closing of 98.85. The number of contracts traded was 36,836.

Tata Steel December 2013 futures were at a premium of 2.45 points at 425.60 compared with spot closing of 423.15. The number of contracts traded was 10,932. 

Reliance Industries December 2013 futures were at a premium of 6.30 points at 874.30 compared with spot closing of 868.00. The number of contracts traded was 10,886. 

Yes Bank December 2013 futures were at a premium of 1.70 points at 395.20 compared with spot closing of 393.50. The number of contracts traded was 14,312. 

ICICI Bank December 2013 futures were at a premium of 8.80 points at 1151.90 compared with spot closing of 1143.10. The number of contracts traded was 20,026. 

Among Nifty calls, 6,400 SP from the December month expiry was the most active call with an addition of 0.44 million open interest.

Among Nifty puts, 6,000 SP from the December month expiry was the most active put with  an addition of 0.17 million in open interest.

The maximum OI outstanding for Calls was at 6,400 SP (6.09 mn) and that for Puts was at 6,000 SP (5.04 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6279.925-- Pivot Point 6255.33- Support -- 6235.32.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, Tata Steel 1.34, DR Reddy 1.28, Axis Bank 1.06, L&T 1.03, and Bharat Forg 1.00.

Among most active underlying, Power Grid Corporation of India witnessed an addition of 24.09 million  in Open Interest in the December month futures contract followed by United Spirits  with an addition of 0.11 million of Open Interest in the near month contract; SBI witnessed an addition  of 0.09 million of Open Interest in the December month futures. Reliance Industries witnessed an addition of 0.24 million in Open Interest in the December month contract and TCS witnessed an addition of 0.11 million in Open Interest in the near month futures contract.