Nifty manages to close slightly higher above 6,300 levels

Extending previous session rally, Nifty opened in the positive terrain in early deals on Tuesday buoyed by firm Asian cues. All the Asian equity indices were trading higher after Chinese central bank injected emergency funding support to commercial banks in order to cater to rising demand for cash ahead of the Chinese New Year. Moreover, the Japanese Nikkei was trading higher for the first time in four sessions, up by around one and a half percent, as a weaker yen boosted stocks of exporters as well as automakers. Rally in rate sensitive counters too supported the sentiments in late morning amid renewed expectations that the Reserve Bank of India (RBI) will maintain status quo on interest rates when it meets to review its monetary policy on January 28. Stocks related to textile sector like, Arvind, Alok Industries, Vardhman Textile, Trident etc. edged higher as the government is setting up a $60 billion target for the next financial year, up by over 30% from the current financial year. Some support also came in after Indian rupee firmed up against the US dollar in early trades and was up at Rs 61.47 per dollar as compared with the previous close of Rs 61.62 per dollar.

Nevertheless, during noon trade, bout of selling pressure dragged the index from day’s high point. Despite intense profit-booking, barometer gauges, Nifty held above the crucial 6,300 level. However, the index after slipping into negative territory recouped and ended in green, up by over two tenths of a percent. Meanwhile, broader indices outperforming larger peers went home with gains of over 3/4 of a percent.

Most of the NSE sectoral indices made a green closing; CNX Bank up by 1.49%, CNX PSU Bank up by 1.15%, CNX Finance up by 1.14%, CNX Auto up by 0.94% and CNX MNC 0.70% were the gainer on index. On the other hand, CNX Energy down by 0.68%, CNX IT down by 0.58%, CNX PSE down by 0.57%, CNX Media down by 0.39% and CNX FMCG down by 0.20% were the top losers on index.

The India VIX increased by 1.30% at 15.55 as compared to its previous close of 15.35 on Friday. The 50-share CNX Nifty increased by 9.85 points or 0.16% to settle at 6,313.80.

Nifty January 2014 futures closed at 6320.15 on Monday at a premium of 16.20 points over spot closing of 6,303.95, while Nifty February 2014 futures ended at 6357.15 at a premium of 53.20 points over spot closing. Nifty January futures saw contraction of 0.89 million (mn) units taking the total outstanding open interest (OI) to 17.08 mn units. The near month January 2014 derivatives contract will expire on January 30, 2014.

From the most active contracts, Reliance Communications January 2014 futures traded flat compared with spot closing of 132.90. The number of contracts traded was 14,188. 

Aurobindo Pharma January 2014 futures traded at a discount of 0.15 points at 410.75 compared with spot closing of 410.90. The number of contracts traded was 16,547.

Reliance Industries January 2014 futures were at a premium of 5.60 points at 873.60 compared with spot closing of 868.00. The number of contracts traded was 22,643. 

ICICI Bank January 2014 futures were at a premium of 2.40 points at 1048.70 compared with spot closing of 1,046.30. The number of contracts traded was 14,112. 

SBI January 2014 futures were at a discount of 1.50 points at 1644.40 compared with spot closing of 1645.90. The number of contracts traded was 18,131.  

 Among Nifty calls, 6,300 SP from the January month expiry was the most active call with contraction of 0.09 million in open interest.

Among Nifty puts, 6,200 SP from the January month expiry was the most active put with  contraction of 0.51 million open interests.

The maximum OI outstanding for Calls was at 6,300 SP (4.80 mn) and that for Puts was at 6,200 SP (6.61 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6319.5 -- Pivot Point 6308.7 - Support - 6287.1.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.27 for January month contract. The top five scrips with highest PCR on OI were DR Reddy 2.92, HCL Tech 2.67, Infosys 2.14, HDFC 1.72 and Auro Pharma 1.48.

Among most active underlying, SBI witnessed contraction of 0.19 million of Open Interest in the January month futures contract followed by Infosys witnessed contraction of 0.15 million of Open Interest in the January month contract; Reliance Industries witnessed an addition of 0.57 million of Open Interest in the January month futures. United Spirits witnessed contraction of 0.86 million of Open Interest in the January month contract and TCS witnessed contraction of 0.03 million in Open Interest in the near month futures contract.