Nifty achieves highest-ever closing above crucial 6,400 level

Indian equity benchmark Nifty closed the session at its all time high level of 6,401 with a gain of over a percent as a sharp decline in India's current account deficit during Q3 FY14 coupled with a sustained buying by foreign funds over the past few sessions encouraged investors to put money in stocks. After a positive start in early trade, Nifty continued its strong rally throughout the day without a single instance of profit booking in the session. On the global front, Asian markets ended in green, while the European markets made a cautious start ahead of the European Central Bank’s interest-rate decision.

Back home, Nifty made a positive start tracking firm cues from Asian markets. Sentiments got a boost as India’s current account deficit contracted to a 4-year low to $4.2 billion or 0.9% of GDP in Q3 FY14 mainly driven by a sharp decline in the trade deficit. Nifty continued firm trade during afternoon session amid sustained buying by foreign institutional investors (FIIs), who were net buyers for 14th consecutive days in a row till last session. Further, the appreciation in rupee value to its three month high against the dollar also added to the optimistic sentiments. The index extended gains in late afternoon session on the back of strong buying witnessed in realty, PSE and metal stocks. Finally, Nifty ended the session at its all time high with the gain of 72 points from its previous close.

Meanwhile, sectoral indices on the NSE made positive closing. CNX Realty up by 4.25%, CNX PSE up by 2.48%, CNX Metal up by 2.21%, CNX Energy up by 2.17% and CNX Infra up by 2.09% remained the top gainers in the trade. While, CNX Pharma down by 0.24% remained the only loser in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 4.57% and reached 14.4750. The 50-share CNX Nifty increased by 72.50 points or 1.15% to settle at 6,401.15.

Nifty March 2014 futures closed at 6430.10 on Thursday at a premium of 28.95 points over spot closing of 6,401.15, while Nifty April 2014 futures ended at 6466.65 at a premium of 65.50 points over spot closing. Nifty March futures saw an addition of 0.43 million (mn) units, taking the total outstanding open interest (OI) to 15.80 mn units. The near month March 2014 derivatives contract will expire on March 27, 2014.

From the most active contracts, Reliance Communications March 2014 futures were at a premium of 0.75 points at 114.35 compared with spot closing of 113.60. The number of contracts traded was 15,612.

Tata Motors March 2014 futures traded at a premium of 4.80 points at 411.45 compared with spot closing of 406.65. The number of contracts traded was 13,282.

Tata Steel March 2014 futures were at a premium of 1.50 points at 366.60 compared with spot closing of 365.10. The number of contracts traded was 18,603.

Yes Bank March 2014 futures traded at a premium of 0.75 points at 346.60 compared with spot closing of 345.85. The number of contracts traded was 16,323.

Reliance Industries March 2014 futures traded at a premium of 5.25 points at 827.50 compared with spot closing of 822.25. The number of contracts traded was 21,415.Among Nifty calls, 6,500 SP from the March month expiry was the most active call with addition of 1.40 million open interest.

Among Nifty puts, 6,300 SP from the March month expiry was the most active put with an addition of 1.79 million open interests.

The maximum OI outstanding for Calls was at 6,400 SP (5.35 mn) and that for Puts was at 6,200 SP (7.19 mn).The respective Support and Resistance levels of Nifty are: Resistance 6425.27-- Pivot Point 6382.48-- Support-- 6358.37.

The Nifty Put Call Ratio (PCR) OI wise, finally stood at 1.38 for March month contract. The top five scrips with highest PCR on OI were ULTRACEMCO 2.01, Ambuja Cements 1.58, Axis Bank 1.47, ONGC 1.40, and BPCL 1.39.

Among most active underlying, State Bank of India witnessed addition of 0.10 million of Open Interest in the March month futures contract, followed by Tata Steel witnessing contraction of 0.36 million of Open Interest in the March month contract; Rel Infra witnessed an addition of 0.28 million of Open Interest in the March month futures. ICICI Bank witnessed an addition of 0.03 million of Open Interest in the March month contract and Reliance witnessed an addition of 0.07 million in Open Interest in the expiring March month's future contract.