After taking a hit in the last session, index once again showed some resilience amid the weak global setup and resumed its gaining streak by making a smart recovery in last leg of trades as buying emerged at lower levels in selected blue chip stocks that were available at discounted rates after previous session’s drubbing and early day’s thrashing. Pressurized by feeble global cues, index made a negative opening, never looked in recovery mood and continued sliding till the end. The intra-day reversal which took place in the late hours of the trade mainly pared all initial losses and push the index above the neutral line and helped to re-conquer crucial 6,500 bastions. Sentiments remained down-beat since morning after global markets witnessed a sell-off, as global concerns resurfaced after latest reports indicated that Russia’s Defense Ministry announced new military operations in several regions near the Ukrainian border on Thursday.
However, sentiments got some support after annual rate of inflation, based on monthly WPI, which cooled off to nine-month low at 4.68% for the month of February, 2014 as compared to 5.05% in January, bolstered hopes that RBI would leave key policy rates on hold, if not slash them in its monetary policy on April 1, 2014. Report that foreign institutional investors (FIIs) bought shares worth a net Rs 616.62 crore on March 13 too aided optimistic sentiments.
Meanwhile, sectoral indices on the NSE made positive closing. CNX Infra up by 1.05%, CNX Pharma up by 1.00%, CNX Realty up by 0.99%, CNX Auto up by 0.84% and CNX Metal up by 0.50% remained the gainers in the trade. While, CNX Finance down by 0.80%, CNX Bank down by 0.71%, CNX Media down by 0.64%, CNX Service down by 0.54%, and CNX IT down by 0.25% 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 2.21% and reached 16.4475. The 50-share CNX Nifty increased by 11.10 points or 0.17% to settle at 6,504.20.
Nifty March 2014 futures closed at 6,538.85 on Friday at a premium of 34.65 points over spot closing of 6,504.20, while Nifty April 2014 futures ended at 6583.80 at a premium of 79.60 points over spot closing. Nifty March futures saw contraction of 0.03 million (mn) units, taking the total outstanding open interest (OI) to 19.37 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 0.85 points at 175.85 compared with spot closing of 175.00. The number of contracts traded was 16,067.
HDFC Bank March 2014 futures traded at a premium of 6.50 points at 738.80 compared with spot closing of 732.30. The number of contracts traded was 14,422.
Tata Steel March 2014 futures were at a premium of 1.00 points at 343.70 compared with spot closing of 342.70. The number of contracts traded was 17,092.
Yes Bank March 2014 futures traded at a premium of 2.80 points at 358.10 compared with spot closing of 355.30. The number of contracts traded was 13,087.
Reliance Industries March 2014 futures traded at a premium of 5.30 points at 891.30 compared with spot closing of 886.00. The number of contracts traded was 17,157.
Among Nifty calls, 6,600 SP from the March month expiry was the most active call with an addition of 0.05 million open interest.
Among Nifty puts, 6,400 SP from the March month expiry was the most active put with contraction of 0.41 million open interests.
The maximum OI outstanding for Calls was at 6,600 SP (4.70 mn) and that for Puts was at 6,400 SP (6.23 mn).
The respective Support and Resistance levels of Nifty are: Resistance 6537.53 -- Pivot Point 6485.12 - Support -- 6451.78.
The Nifty Put Call Ratio (PCR), finally stood at 1.43 for March month contract. The top five scrips with highest PCR on OI were HDFC 1.65, Ambuja Cement 1.61, Ultra Cement 1.48, Hindalco 1.35, and Hero Motoco 1.32.
Among most active underlying, State Bank of India witnessed an addition of 0.15 million of Open Interest in the March month futures contract, followed by Reliance Industries witnessing an addition of 0.30 million of Open Interest in the March month contract; United Spirits witnessed an addition of 0.14 million of Open Interest in the March month futures. ICICI Bank witnessed contraction of 0.43 million of Open Interest in the March month contract and HDFC Bank witnessed an addition of 1.09 million in Open Interest in the expiring March month's future contract.
