Nifty ends higher amid firm global cues

Nifty ended the session near its intra-day high level, well above the 6300 mark, after recovering from day’s low in afternoon trades on the back of buying witnessed in banking, realty and finance stocks amid firm global cues. On the global front, most of the Asian markets ended in green, except the Chinese stocks. However, European markets made a flat start as investors remained cautious ahead of forthcoming economic data from Europe and America.

Back home, Nifty made a gap up opening tracking firm global cues as the US market ended higher overnight due to easing tensions in Ukraine. However, in the afternoon session, market slipped into negative territory as sentiment got a hit after HSBC Services PMI reported at 48.8 in February, indicating contraction as the reading below 50 mark. However, the Services PMI improved in the reported month as against 48.3 in January. Further, the Federation of Indian Exports Organisation (FIEO) statement that India's exports will not be able to achieve the target of $325 billion in FY14 also added to the pessimistic sentiments. However, market recovered from day's low in the second half as investors resumed buying in banking and financial stocks. Finally, Nifty ended the session near its intra-day high level with gains of nearly half a percent.

Meanwhile, sectoral indices on the NSE made mixed closing. CNX PSU Bank up by 2.89%, CNX Realty up by 2.16%, CNX Finance up by 1.22%, CNX Media up by 0.85% and CNX Metal up by 0.76% remained the gainers in the trade. While, CNX Energy down by 0.25%, CNX Pharma down by 0.19%, CNX Auto down by 0.06% and CNX Infra down by 0.02% were remained the top losers in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 3.82% and reached 13.8425. The 50-share CNX Nifty increased by 30.70 points or 0.49% to settle at 6,328.65.

Nifty March 2014 futures closed at 6352.30 on Wednesday at a premium of 23.65 points over spot closing of 6,328.65, while Nifty April 2014 futures ended at 6389.00 at a premium of 60.35 points over spot closing. Nifty March futures saw an addition of 0.83 million (mn) units, taking the total outstanding open interest (OI) to 15.37 mn units. The near month March 2014 derivatives contract will expire on March 27, 2014.

From the most active contracts, Tata Steel March 2014 futures were at a premium of 2.40 points at 357.55 compared with spot closing of 355.15. The number of contracts traded was 15,733.

Yes Bank March 2014 futures traded at a premium of 1.50 points at 332.60 compared with spot closing of 331.10. The number of contracts traded was 23,598.

Reliance Industries March 2014 futures were at a premium of 5.70 points at 812.20 compared with spot closing of 806.50. The number of contracts traded was 13,571.

Canara Bank March 2014 futures traded at a premium of 1.65 points at 229.75 compared with spot closing of 228.10. The number of contracts traded was 11,380.

SBI March 2014 futures traded at a discount of 2.90 points at 1569.10 compared with spot closing of 1572.00. The number of contracts traded was 43,269.

Among Nifty calls, 6,300 SP from the March month expiry was the most active call with addition of 0.30 million open interest.

Among Nifty puts, 5,800 SP from the March month expiry was the most active put with an addition of 1.11 million open interests.

The maximum OI outstanding for Calls was at 6,400 SP (5.54 mn) and that for Puts was at 6,200 SP (7.32 mn).The respective Support and Resistance levels of Nifty are: Resistance 6347.33 -- Pivot Point 6317.57 - Support- 6298.88.

The Nifty Put Call Ratio (PCR) OI wise, finally stood at 1.25 for March month contract. The top five scrips with highest PCR on OI were Ambuja Cements 1.62, Axis Bank 1.43, BoB 1.40, Hind Petro 1.20, and Rel Infra 1.12.

Among most active underlying, State Bank of India witnessed contraction of 0.13 million of Open Interest in the March month futures contract, followed by Auro Pharma witnessing addition of 0.29 million of Open Interest in the March month contract; ICICI Bank witnessed an addition  of 0.31 million of Open Interest in the March month futures. YES Bank witnessed a contraction of 1.19 million of Open Interest in the March month contract and Tata Steel witnessed a contraction of 0.30 million in Open Interest in the expiring March month’s future contract.