Nifty managed to keep its head above water ahead of IIP, CPI data

Nifty managed to keep its head above water, after taking a breather in the last session, as investors opted to remain on the sidelines ahead of Index of Industrial Production (IIP) data for January and Consumer Price Index (CPI) data for the month of February, to be released after markets hour. The index exhibited volatility after making a flat opening, however, added gains after initially treading in the red and started moving northward as buying emerged at higher levels in select heavyweights. In the afternoon session the index relinquished gains and slipped into red for a couple of times as bears and bulls tussled over market dominance. Buying which emerged in late trade mainly acted as saving grace for street and helped them to regain crucial 6,500 bastions. Consistent buying from foreign institutional investors (FIIs) in the past several consecutive sessions supported the sentiments. Markets continue to trade northward on hopes that business friendly -Narendra Modi led government would emerge victorious at General Election 2014. Nonetheless, gains on up-side remained capped as investors remained concerned with India’s merchandise exports falling for the first time in eight months and set to miss its export target for the fiscal with exports moving into the negative zone in February 2014. Further, depreciation in rupee and weak global cues also dented the sentiments.

Meanwhile, sectoral indices on the NSE made positive closing. CNX Media up by 1.87%, CNX FMCG up by 1.32%, CNX IT up by 0.50%, CNX Service up by 0.13% and CNX Realty up by 0.03% remained the gainers in the trade. While, CNX PSU Bank down by 1.69%, CNX PSE down by 0.84%, CNX Infra down by 0.70%, CNX Auto down by 0.63% and CNX Energy down by 0.56% 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 1.64% and reached 17.0400. The 50-share CNX Nifty increased by 5.00 points or 0.08% to settle at 6,516.90.

Nifty March 2014 futures closed at 6,549.25 on Wednesday at a premium of 32.35 points over spot closing of 6,516.90, while Nifty April 2014 futures ended at 6591.00 at a premium of 74.10 points over spot closing. Nifty March futures saw an addition of 0.06 million (mn) units, taking the total outstanding open interest (OI) to 18.62 mn units. The near month March 2014 derivatives contract will expire on March 27, 2014.

From the most active contracts, DLF March 2014 futures were at a premium of 0.95 points at 179.65 compared with spot closing of 178.70. The number of contracts traded was 14,004.

Tata Steel March 2014 futures were at a premium of 1.80 points at 341.80 compared with spot closing of 340.00. The number of contracts traded was 21,122.

HDFC Bank March 2014 futures traded at a premium of 5.75 points at 731.55 compared with spot closing of 725.80. The number of contracts traded was 12,964.

Yes Bank March 2014 futures traded at a premium of 2.95 points at 367.10 compared with spot closing of 364.15. The number of contracts traded was 13,261.

Reliance Industries March 2014 futures traded at a premium of 7.20 points at 876.45 compared with spot closing of 869.25. The number of contracts traded was 11,985.Among Nifty calls, 6,600 SP from the March month expiry was the most active call with an addition of 0.30 million open interest.

Among Nifty puts, 6,400 SP from the March month expiry was the most active put with addition  of 0.46 million open interests.

The maximum OI outstanding for Calls was at 6,600 SP (4.48 mn) and that for Puts was at 6,400 SP (6.73 mn).The respective Support and Resistance levels of Nifty are: Resistance 6546.27 -- Pivot Point 6516.78 - Support -- 6487.42.

The Nifty Put Call Ratio (PCR), finally stood at 1.52 for March month contract. The top five scrips with highest PCR on OI were Ambuja Cement 1.56, IOC 1.48, BPCL 1.44, Hindalco 1.33 and Ultra Cement company 1.30.

Among most active underlying, State Bank of India witnessed  an addition of 0.08 million of Open Interest in the March month futures contract, followed by Reliance Industries witnessing an addition  of 0.08 million of Open Interest in the March month contract; United Spirits  witnessed contraction of 0.01 million of Open Interest in the March month futures. ICICI Bank witnessed an addition of 0.14 million of Open Interest in the March month contract and TCS witnessed contraction of 0.09 million in Open Interest in the expiring March month's future contract.