Nifty chants 'NaMo'; ends at all-time high above 6,350

Nifty closed at all-time high above 6,350 levels as investors hailed the victory of the Bharatiya Janata Party in assembly elections.

Nifty made a gap-up opening and hit record high in early deals above its crucial 6,350 levels on the back of strong performance of Bharatiya Janata Party (BJP) in assembly elections in Rajasthan, Delhi, Madhya Pradesh and Chattisgarh. The poll results lived up to the street’s expectations of a win for the pro-growth BJP, which could also prompt foreign fund managers to bet on the return of the NDA-led coalition at the Centre after the Lok Sabha elections next year. Sentiments also remained boosted on data showing that foreign funds remained buyers of Indian stocks on December 6, 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 863.77 crore on Friday, 6 December 2013, as per provisional data from the stock exchanges. Global cues too remained supportive with the US markets ending higher on Friday on the back of better than expected monthly jobs report. The report showed that non-farm payroll employment rose by 203,000 jobs in November following a revised increase of 200,000 jobs in October. Moreover, most of the Asian equity markets were trading in the green, led by Japanese Nikkei, up by around two percent as an upbeat U.S. jobs report hurting the yen and triggering some hectic buying at several counters. Buying continued on street in late morning as the rupee appreciated by 51 paise to trade at nearly four-month high of 60.90 against the dollar due to dollar sales by banks and exporters and sustained foreign capital inflows. 

Index cooled off from day’s high in afternoon deals as select investors preferred cashing profits at record high level above the 6,350. Meanwhile, broader indices too gaining some traction were up with gains of over quarter of a percent. Further, positive global set-up also were bolstering sentiment and leading to across the board buying activities at Dalal Street. Firmness continued on street in last leg of trade managed to close above the crucial 6,350 levels.

NSE sectoral indices made a green closing; CNX Bank up by 2.95%, CNX Realty up by 2.79%, CNX Infra up by 2.41%, CNX Finance up by 2.32% and CNX Media up by 2.30% were the top gainers on index. On the other hand, there was no loser on index.

The India VIX decreased by 13.73% at 19.16 as compared to its previous close of 21.68 on Friday. The 50-share CNX Nifty increased by 104.00 points or 1.66% to settle at 6,363.90.

Nifty December 2013 futures closed at 6391.75 on Monday at a premium of 27.85 points over spot closing of 6,363.90, while Nifty January 2014 futures ended at 6445.75 at a premium of 81.85 points over spot closing. Nifty December futures saw an addition of 2.05 million (mn) units taking the total outstanding open interest (OI) to 21.57 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 4.45 points at 96.55 compared with spot closing of 101.00. The number of contracts traded was 21,586.

SSLT December 2013 futures were at a premium of 1.20 points at 192.65 compared with spot closing of 191.45. The number of contracts traded was 14,015. 

DLF December 2013 futures were at a premium of 0.10 points at 165.30 compared with spot closing of 165.20. The number of contracts traded was 19,945. 

Tata Steel December 2013 futures were at a premium of 3.25 points at 423.35 compared with spot closing of 420.10. The number of contracts traded was 12,608. 

Reliance Industries December 2013 futures were at a premium of 7.00 points at 884.75 compared with spot closing of 877.75. The number of contracts traded was 15,512. 

Among Nifty calls, 6,400 SP from the December month expiry was the most active call with contraction of 0.07 million open interest.

Among Nifty puts, 6,200 SP from the December month expiry was the most active put with  an addition of 0.31 million in open interest.

The maximum OI outstanding for Calls was at 6,400 SP (5.30 mn) and that for Puts was at 6,200 SP (4.78 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6404.43-- Pivot Point 6374.72- Support -- 6334.18.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, DR Reddy 1.54, L&T 1.35, Tata Steel 1.34, Axis Bank 1.26 and Indus Indbk 1.00.

Among most active underlying, Power Grid Corporation of India witnessed an addition of 16.59 million  in Open Interest in the December month futures contract followed by United Spirits  with  marginal  contraction  in Open Interest in the near month contract; SBI witnessed contraction  of 0.02  million of Open Interest in the December month futures. Reliance Industries witnessed an addition of 0.26 million in Open Interest in the December month contract and ICICI Bank witnessed an addition of 0.02 million in Open Interest in the near month futures contract.