Nifty ends lacklustre session with minor gains

Nifty ended above 6050 levels with a positive bias, amid a range bound trade on Monday, as investors remained cautious ahead of key economic data due for release tomorrow. On the global front, Asian pacific shares went home with gains on cautious optimism that the Federal Reserve's new head will signal the central banks commodity-friendly monetary policy is to remain for now. European shares too moved higher ahead of the US Federal Reserve chair's testimony.

Nifty opened in the green on back of positve Asian peers and overnight positive close of the US markets. Traders remained concerned about the survey findings of Credit Suisse and Nielsen that said confidence among emerging market consumers has deteriorated during the last year and stated that optimism level in India has also slipped four percentage points over last year and India was ranked fifth in the list. Traders were also worried by the continued selling by the FIIs. Information Technology (IT) stocks witnessed strong demand in late morning after Nasscom’s guidance for the sector. Additionally, banking and Auto stocks were in demand ahead of CPI data on Wednesday, which is expected to have eased to 9.40 per cent from a year earlier, compared with 9.87 per cent in December. Besides, sugar stocks like Shree Renuka, Balrampur Chini Mills and Bajaj Hindusthan were on buyers’ radar ahead of the outcome of Cabinet Committee on Economic Affairs (CCEA) meeting on sugar subsidy. The government is likely to decide on subsidy for export of 4 million tonnes of raw sugar.

Nevertheless, the good economic data too was unable to put life into the market, India's trade deficit narrowed in January to $9.92 billion, helped by a 77 per cent drop in imports of gold and silver. However, gains in the Index were restricted by the weakness in heavyweight Reliance Industries, which came under pressure after Delhi Chief Minister Arvind Kejriwal has asked anti-corruption branch for legal cases to be filed against Reliance Industry Chairman Mukesh Ambani and some ministers, over pricing of gas produced from the KG-D6 basin.

Meanwhile, sectoral indices on the NSE made a positive closing. CNX Media down by 1.33%, CNX Energy down by 0.91%, CNX Realty down by 0.80%, CNX Infra down by 0.51% and CNX Pharma down by 0.47% were remained the top losers in the trade. While, CNX Auto up by 0.99%, CNX IT up by 0.95%, CNX Finance up by 0.53%, CNX Service up by 0.44%, and CNX Bank up by 0.31% remained the gainer in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 2.20% and reached 18.63.The 50-share CNX Nifty increased by 9.25 points or 0.15% to settle at 6,062.70.

Nifty February 2014 futures closed at 6072.75 on Tuesday at a premium of 10.05 points over spot closing of 6,062.70, while Nifty March 2014 futures ended at 6108.90 at a premium of 46.20 points over spot closing. Nifty February futures saw an addition of 0.48 million (mn) units taking the total outstanding open interest (OI) to 15.91 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 0.15 points at 40.05 compared with spot closing of 39.90. The number of contracts traded was 10,545. 

Tata Motors February 2014 futures were at a premium of 1.10 points at 375.20 compared with spot closing of 374.10. The number of contracts traded was 26,645. 

Reliance Industries February 2014 futures were at a premium of 5.60 points at 809.35 compared with spot closing of 803.75. The number of contracts traded was 21,332. 

Tata Steel February 2014 futures traded at a discount of 0.15 points at 391.65 compared with spot closing of 391.80. The number of contracts traded was 15,110.

ICICI Bank February 2014 futures were at a premium of 2.60 points at 972.10 compared with spot closing of 969.50. The number of contracts traded was 14,129.  Among Nifty calls, 6,200 SP from the February month expiry was the most active call with an addition of 0.31 million in open interest.

Among Nifty puts, 6,000 SP from the February month expiry was the most active put with  an addition of 0.24 million open interests.

The maximum OI outstanding for Calls was at 6,200 SP (6.55 mn) and that for Puts was at 6,000 SP (8.95 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6078.62-- Pivot Point 6065.93 - Support- 6050.02.

The Nifty Put Call Ratio (PCR) OI wise, finally stood at 1.26 for February month contract. The top five scrips with highest PCR on OI were Auro Pharma 1.51, HCL Tech 1.37, Grasim 1.29, ACC 1.27, and PNB 1.21.

Among most active underlying, State Bank of India witnessed  an addition of 0.03 million of Open Interest in the February month futures contract, followed by Reliance Industries witnessing  an addition  of 1.00 million of Open Interest in the February month contract; United Spirits witnessed  addition of 0.05 million of Open Interest in the February month futures. ICICI Bank witnessed contraction of 0.13 million of Open Interest in the February month contract and TCS witnessed an addition of 0.21 million in Open Interest in the expiring February month’s future contract.