Nifty ends above 6300 levels on some bargain buying activities

Nifty edged higher in early deals on last day of the year as sentiments remained firm on hopes that inflows from foreign institutional investors (FIIs) will continue despite the US Federal Reserve starting to withdraw its stimulus programme from January 1. The gains remained capped as investors remained on the sidelines ahead of April-November fiscal deficit reading later in the day. Sentiments also remained cautious on Reserve Bank of India (RBI) Governor Raghuram Rajan’s statement that the challenge of containing inflation is limiting the central bank’s ability to boost economic growth. Back home, the banking sector remained under pressure after the Reserve Bank of India (RBI) has stated that risks to the banking sector have increased during the past six months due to rising bad loans and has proposed tightening banks' exposure limit for single borrower and single groups.

Meanwhile, higher level of buying was witnessed on street in late morning on report of foreign institutional investors (FIIs) bought shares worth a net Rs 116.06 crore on Monday, 30 December 2013, as per provisional data from the stock exchanges. In noon trades, the index held firm in the positive terrain, albeit with slender gains of over one tenth of a percent, with Nifty just shy of the crucial 6300 levels. Further, some mild recovery, which was witnessed in dying hours of trade mainly aided index in clocking a positive close above 6300 level.

Most of the NSE sectoral indices made a green closing; CNX Energy up by 0.65%, CNX PSU Bank up by 0.53%, CNX Infra up by 0.48%, CNX PSE up by 0.44 and CNX Commodities up by 0.36% were the top gainers on index. On the other hand, CNX MNC down by 0.23% and CNX Metal down by 0.20% were the top losers on index.

The India VIX increased by 0.26% at 15.12 as compared to its previous close of 15.08 on Monday. The 50-share CNX Nifty increased by 12.90 points or 0.21 % to settle at 6,304.00.

Nifty January 2014 futures closed at 6354.70 on Tuesday at a premium of 50.70 points over spot closing of 6,304.00, while Nifty February 2014 futures ended at 6397.85 at a premium of 93.85 points over spot closing. Nifty January futures saw an addition of 0.49 million (mn) units taking the total outstanding open interest (OI) to 19.73 mn units. The near month January 2014 derivatives contract will expire on January 30, 2014.

From the most active contracts, BHEL January 2014 futures traded at a discount of 6.30 points at 169.90 compared with spot closing of 176.20. The number of contracts traded was 7,120.

Apollo Tyres January 2014 futures were at a premium of 1.30 points at 108.15 compared with spot closing of 106.85. The number of contracts traded was 21,172. 

IDFC January 2014 futures were at a premium of 0.85 points at 110.70 compared with spot closing of 109.85. The number of contracts traded was 8,121. 

Reliance Industries January 2014 futures were at a premium of 9.95 points at 903.95 compared with spot closing of 894.00. The number of contracts traded was 13,842. 

ICICI Bank January 2014 futures were at a premium of 11.05 points at 1109.05 compared with spot closing of 1098.00. The number of contracts traded was 7,718.  

Among Nifty calls, 6,500 SP from the January month expiry was the most active call with an addition in  open interest.

Among Nifty puts, 6,300 SP from the January month expiry was the most active put with an addition of 0.35 million open interest.

The maximum OI outstanding for Calls was at 6,500 SP (4.39 mn) and that for Puts was at 6,300 SP (3.79 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6318.43 -- Pivot Point 6302.87 - Support - 6288.43.

The Nifty Put Call Ratio (PCR) OI wise, stood at 0.91 for January month contract.

The top five scrips with highest PCR on OI were JublFood 1.95, Mcleodruss 1.55, Apollo Tyre 1.54, Hexaware 1.49, and Indusind BK 1.40.

Among most active underlying, United Spirits witnessed an addition of 0.31 million in Open Interest in the January month futures contract followed by SBI witnessed an addition of 0.27 million of Open Interest in the January month contract; Reliance Industries witnessed an addition of 0.25 million of Open Interest in the January month futures. TCS witnessed contraction of 0.03 million of Open Interest in the January month contract and Infosys witnessed an addition of 0.08 million in Open Interest in the near month futures contract.