Nifty ends within hailing distance of 6300 levels as Ukraine crisis eases

Nifty after making a positive opening continued to move northwards persistently ignoring the global scenario untill the last leg of trade and closed within hailing distance of 6300 levels without even an iota of profit booking in the session as investors continued to hunt for fundamentally strong and oversold stocks. Sentiments were boosted from reports suggesting that government is likely to consider a proposal to allow companies to issue depository receipts such as American depository receipt (ADR) and global depository receipt (GDR) against debt instruments, in a bid to deepen financial markets. Further, the index rallied after investors quickly piled up positions as Russia’s President Vladimir Putin ordered his troops back to base, raising hopes of a peaceful solution to the recent geopolitical tensions in Ukraine. Recovery in Indian rupee also aided the sentiments.

Meanwhile, sectoral indices on the NSE made positive closing. CNX Pharma down by 0.51%, CNX IT down by 0.12% were remained the top losers in the trade. While, CNX Metal up by 3.14%, CNX PSU Bank up by 3.07%, CNX bank up by 2.60%, CNX Commodities up by 2.24% and CNX Finance up by 2.02% remained the gainers in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 5.82% and reached 14.3925. The 50-share CNX Nifty increased by 76.50 points or 1.23% to settle at 6,297.95.

Nifty March 2014 futures closed at 6333.85 on Tuesday at a premium of 35.90 points over spot closing of 6,297.95, while Nifty April 2014 futures ended at 6371.05 at a premium of 73.10 points over spot closing. Nifty March futures saw an addition of 1.08 million (mn) units, taking the total outstanding open interest (OI) to 14.53 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 0.15 points at 114.00 compared with spot closing of 114.15. The number of contracts traded was 11,880.

Tata Motors March 2014 futures traded at a premium of 2.85 points at 415.85 compared with spot closing of 413.00. The number of contracts traded was 12,715.

Yes Bank March 2014 futures traded at a premium of 0.90 points at 321.90 compared with spot closing of 321.00. The number of contracts traded was 16,095.

Tata Steel March 2014 futures were at a premium of 2.40 points at 354.45 compared with spot closing of 352.05. The number of contracts traded was 16,114.

Reliance Industries March 2014 futures were at a premium of 6.25 points at 818.60 compared with spot closing of 812.35. The number of contracts traded was 14,422. 

Among Nifty calls, 6,300 SP from the March month expiry was the most active call with addition of 0.01 million open interest.

Among Nifty puts, 6,200 SP from the March month expiry was the most active put with an addition of 0.81 million open interests.

The maximum OI outstanding for Calls was at 6,300 SP (5.12 mn) and that for Puts was at 6,200 SP (6.40 mn).The respective Support and Resistance levels of Nifty are: Resistance 6328.17 -- Pivot Point 6271.93 - Support- 6241.72.

The Nifty Put Call Ratio (PCR) OI wise, finally stood at 1.14 for March month contract. The top five scrips with highest PCR on OI were Bata India 1.67, Axis Bank 1.48, GAIL 1.46, Kotak Bank 1.27, and Hind Petro 1.11.

Among most active underlying, State Bank of India witnessed addition of  0.13 million of Open Interest in the March month futures contract, followed by Reliance Industries witnessing contraction  of 0.26 million of Open Interest in the March month contract; United Spirits witnessed an addition  of 0.07 million of Open Interest in the March month futures. TCS witnessed an addition of 0.10 million of Open Interest in the March month contract and ICICI Bank witnessed an addition of 0.70 million in Open Interest in the expiring March month’s future contract.