Nifty ends above 6,250 levels on hopes RBI will hold rates

Nifty made a gap-up opening in early deals on Monday, with frontline gauges recapturing its crucial 6,200 bastions. Sentiments remained buoyed as lower growth in US payrolls eased concerns the Federal Reserve may not go for aggressive stimulus cuts. The Asian equity markets were trading mostly higher at this point of time, while the US markets made a mixed closing on getting disappointing jobs data, though wholesale inventories rose, but traders remained concerned about Fed’s further course of action. Market sentiments were boosted in late morning as the rupee was trading stronger at 61.55/56. Some support also come in from report that Foreign investors bought Indian shares worth 681 million rupees on Friday, after selling in four of the previous five sessions. Shares of oil and gas companies were trading higher by up to 3 percent in morning deals after the government has officially notified the new gas pricing policy that would be applicable to all the domestically produced gas from April 2014, which will be effective for five years.

The underlying tone continued fairly strong in noon trade on hopes that the Reserve Bank of India (RBI) will keep interests rates on hold for a second consecutive month at its policy review on January 28 after data on Friday showed industrial output in November unexpectedly contracted, while consumer prices data due later in the day is expected to show easing inflation. During the dying hours of the trade massive buying that got triggered, lifted index to day’s high above 6,250 levels.

Most of the NSE sectoral indices made a green closing; CNX IT up by 2.84%, CNX service up by 2.13%, CNX Finance up by 2.06%, CNX Bank up by 2.00% and CNX Energy up by 1.87% were the top gainers on index. On the other hand, CNX Pharma down by 0.66%, CNX MNC down by 0.44%, CNX Metal down by 0.04%, were the top losers on index.

The India VIX increased by 2.37% at 15.95 as compared to its previous close of 15.58 on Friday. The 50-share CNX Nifty increased by 101.30 points or 1.64% to settle at 6,272.75.

Nifty January 2014 futures closed at 6285.30 on Monday at a premium of 12.55 points over spot closing of 6,272.75, while Nifty February 2014 futures ended at 6318.95 at a premium of 46.20 points over spot closing. Nifty January futures saw an addition of 0.52 million (mn) units taking the total outstanding open interest (OI) to 17.57 mn units. The near month January 2014 derivatives contract will expire on January 30, 2014.

From the most active contracts, HDFC Bank January 2014 futures were at a premium of 0.40 points at 674.40 compared with spot closing of 674.00. The number of contracts traded was 10,878. 

Yes Bank January 2014 futures traded at a discount of 1.35 points at 340.45 compared with spot closing of 341.80. The number of contracts traded was 10,013.

Ranbaxy Laboratories January 2014 futures were at a premium of 2.20 points at 440.25 compared with spot closing of 438.05. The number of contracts traded was 27,810. 

Reliance Industries January 2014 futures were at a premium of 0.35 points at 881.85 compared with spot closing of 881.50. The number of contracts traded was 22,316. 

ICICI Bank January 2014 futures were at a discount of 1.05 points at 1059.25 compared with spot closing of 1060.30. The number of contracts traded was 21,072.   Among Nifty calls, 6,300 SP from the January month expiry was the most active call with contraction of 0.32 million in open interest.

Among Nifty puts, 6,200 SP from the January month expiry was the most active put with an addition of 2.16 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (4.78mn) and that for Puts was at 6,200 SP (6.45 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6310.78 -- Pivot Point 6250.17 - Support - 6212.13.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.16 for January month contract.

The top five scrips with highest PCR on OI were DR Reddy 2.55, Infosys 1.73, Apollo Tyre 1.43, HCL Tech 1.34 and Jublfood 1.19.

Among most active underlying, SBI witnessed an addition of 0.19 million in Open Interest in the January month futures contract followed by Infosys witnessed an addition of 0.35 million of Open Interest in the January month contract; United Spirits witnessed an addition of 0.06 million of Open Interest in the January month futures. Reliance Industries witnessed contraction of 0.51 million of Open Interest in the January month contract and ICICI Bank witnessed an addition of 0.27 million in Open Interest in the near month futures contract.