Nifty ends above 6050 levels ahead of GDP data

Nifty trimmed early gains though ended above 6050 levels on Friday, as investors turned cautious ahead of the GDP data for the current fiscal to be released later today. Supportive cues from US markets provided much needed support to local market and sentiments remained up-beat with investors reacting positively to the latest batch of US economic data. Moreover, Asian markets rallied with the Japanese Nikkei ending higher by over two percent after yen dropped against the dollar. European counters too made a positive opening after both the European Central Bank and the Bank of England made no changes to interest rates at their meeting on February 6.

Back home, extending the previous session’s up-move, Nifty made a positive start supported by sanguine global cues. There was a buzz in the market after the Securities and Exchange Board of India (SEBI) specified a circuit limit of up to 20% for all publicly traded stocks that are included in any index derivatives. The market regulator said the move is aimed at protecting stocks against excessive volatility risks. Some support also came in from report that foreign institutional investors (FIIs) bought shares worth a net Rs 10.75 crore on February 6, 2014, as per provisional data from the stock exchanges. Although, market did briefly slip in red in the late afternoon deals, it quickly bounced back in green and ended well above quarter of a percent. However, gains on the up-side remained capped as investors remained cautious ahead of advance GDP estimates for current fiscal 2013-14, where the government is likely to lower its estimate of 5% growth forecast, because of slower-than-expected recovery in industrial growth. Some cautiousness also crept in, as the National Council of Applied Economic Research (NCAER) on Thursday lowered the GDP projection for the current fiscal to 4.7-4.9 percent due to exchange rate depreciation.

Meanwhile, sectoral indices on the NSE made a positive closing. CNX IT down by 0.49% and CNX FMCG down by 0.43% were remained the top losers in the trade. While, CNX Metal up by 2.61%, CNX Pharma up by 1.71%, CNX PSU Bank up by 1.46%, CNX Media up by 1.10%, and CNX Realty up by 0.95% remained the gainer in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 2.05% and reached 18.55 .The 50-share CNX Nifty increased by 26.90 points or 0.45% to settle at 6,063.20.

Nifty February 2014 futures closed at 6075.05 on Friday at a premium of 11.85 points over spot closing of 6,063.20, while Nifty March 2014 futures ended at 6107.95 at a premium of 44.75 points over spot closing. Nifty February futures saw contraction of 0.65 million (mn) units taking the total outstanding open interest (OI) to 15.39 mn units. The near month February 2014 derivatives contract will expire on February 26, 2014.

From the most active contracts, JP Associates February 2014 futures were at a premium of 0.20 points at 40.40 compared with spot closing of 40.20. The number of contracts traded was 10,664. 

Tata Motors February 2014 futures were at a premium of 1.70 points at 361.95 compared with spot closing of 360.25. The number of contracts traded was 11,320. 

Tata Steel February 2014 futures traded at a discount of 1.25 points at 385.20 compared with spot closing of 386.45. The number of contracts traded was 25,415.

Reliance Industries February 2014 futures were at a premium of 4.95 points at 817.95 compared with spot closing of 813.00. The number of contracts traded was 13,400. 

Aurobindo Pharma February 2014 futures were at a discount of 1.05 points at 507.95 compared with spot closing of 509.00. The number of contracts traded was 8,395. 

Among Nifty calls, 6,200 SP from the February month expiry was the most active call with an addition of 0.83 million in open interest.

Among Nifty puts, 6,000 SP from the February month expiry was the most active put with  an addition of 0.77 million open interests.

The maximum OI outstanding for Calls was at 6,200 SP (6.19 mn) and that for Puts was at 6,000 SP (8.33 mn).The respective Support and Resistance levels of Nifty are: Resistance 6085.13-- Pivot Point 6058.02 - Support- 6036.08.

The Nifty Put Call Ratio (PCR) OI wise, finally stood at 1.33 for February month contract. The top five scrips with highest PCR on OI were Auro Pharma 1.74, Grasim 1.45, Hexaware 1.28, ACC 1.121, and Cairn 1.22.

Among most active underlying, State Bank of India witnessed contraction of 0.09 million of Open Interest in the February month futures contract, followed by Reliance Industries witnessing an addition of 0.05 million of Open Interest in the February month contract; United Spirits witnessed  addition of 0.02 million of Open Interest in the February month futures. ICICI Bank witnessed contraction of 0.12 million of Open Interest in the February month contract and TCS witnessed an addition of 0.11 million in Open Interest in the expiring February month’s future contract.