Nifty ends above 6,250 levels ahead of Q3 GDP data

Nifty gained for the fifth straight session to end above 6,250 levels ahead of April-January fiscal deficit figures and Oct-Dec quarter GDP data, which was to be released later in the day. Index after making a positive opening, continued to trade steady in northward direction without succumbing to profit booking, nevertheless hectic-buying activity that took place in the last hour of trade lifted index substantially higher. On the global front, Asian stocks edged up in late trading after a volatile session on Friday, as investors weighed unrest in Ukraine against Federal Reserve Chairwoman Janet Yellen expressing confidence in the strength of the US economy. Additionally, European shares too edged higher in early deals, underpinned by expectations that a further drop in euro zone inflation could prompt the European Central Bank to cut rates.

Back home, sentiments were boosted on report that foreign institutional investors (FIIs) bought shares worth net Rs 511.15 crore on February 26, 2014, as per provisional data from the stock exchanges. The up-move was also supported by rally in technology and software counters as rupee depreciated on month-end dollar demand. Stocks related to Fertilizer remained on buyers’ radar after Cabinet Committee on Economic Affairs cleared the hike in fixed cost of urea by up to Rs 350 per tonne, a move that would lead to increase in subsidy by about Rs 900 crore. It also approved changes to the policy that aims at encouraging new investment in the urea sector by removing ‘guaranteed buyback’ clause and including a provision of bank guarantee of Rs 300 crore from companies. Buying in rate sensitive counters like Banking, Realty and Auto too aided the sentiments as the Reserve Bank of India (RBI) governor Raghuram Rajan has hinted that rates are likely to remain unchanged in the forthcoming monetary policy in April 2014.

Meanwhile, sectoral indices on the NSE made positive closing. CNX Energy down by 0.38%, CNX MNC down by 0.31% and CNX FMCG down by 0.13 were remained the top losers in the trade. While, CNX Pharma up by 2.36%, CNX IT up by 1.35%, CNX Auto up by 1.31%, CNX PSU Bank up by 1.31%, and CNX Metal up by 0.98% remained the gainers in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 1.59 and reached 14.1775. The 50-share CNX Nifty increased by 38.15 points or 0.61% to settle at 6,276.95.

Nifty March 2014 futures closed at 6289.25 on Friday at a premium of 12.30 points over spot closing of 6,276.95, while Nifty April 2014 futures ended at 6325.65 at a premium of 48.70 points over spot closing. Nifty March futures saw an addition of 0.09 million (mn) units, taking the total outstanding open interest (OI) to 13.70 mn units. The near month March 2014 derivatives contract will expire on March 27, 2014.

From the most active contracts, Hindalco Industries March 2014 futures traded at a discount of 0.35 points at 105.55 compared with spot closing of 105.90. The number of contracts traded was 14,922.

Tata Motors March 2014 futures traded at a premium of 2.00 points at 418.20 compared with spot closing of 416.20. The number of contracts traded was 17,773.

Tata Steel March 2014 futures were at a premium of 2.10 points at 346.10 compared with spot closing of 344.00. The number of contracts traded was 22,753.

Reliance Industries March 2014 futures were at a premium of 6.70 points at 804.00 compared with spot closing of 797.30. The number of contracts traded was 19,249.

Aurobindo Pharma March 2014 futures were at a premium of 2.80 points at 526.95 compared with spot closing of 524.15. The number of contracts traded was 13,853. 

Among Nifty calls, 6,300 SP from the March month expiry was the most active call with addition of 0.94 million open interest.

Among Nifty puts, 6,100 SP from the March month expiry was the most active put with an addition of 4.53 million open interests.

The maximum OI outstanding for Calls was at 6,300 SP (4.42 mn) and that for Puts was at 6,100 SP (0.53 mn).The respective Support and Resistance levels of Nifty are: Resistance 6297.07-- Pivot Point 6262.58 - Support- 6242.47.

The Nifty Put Call Ratio (PCR) OI wise, finally stood at 1.10 for March month contract. The top five scrips with highest PCR on OI were Bata India 2.00, Kotak Bank 1.87, Cairn 1.79, Tata Motors 1.17, and Ambuja Cement 1.17.

Among most active underlying, State Bank of India witnessed contraction of 0.09 million of Open Interest in the March month futures contract, followed by Reliance Industries witnessing an addition  of 0.02 million of Open Interest in the March month contract; United Spirits witnessed contraction of 0.02 million of Open Interest in the March month futures. TCS witnessed contraction of 0.34 million of Open Interest in the March month contract and ICICI Bank witnessed contraction of 0.22 million in Open Interest in the expiring March month’s future contract.