Nifty manages to end in green for the third straight session

Nifty managed to end in green on Wednesday, extending their gaining streak for the third straight day, after a stirring tussle between bulls and bears during the session as investors turned cautious ahead of the US Federal Reserve policy review later today. Bargain buying which emerged in last stage mainly acted as saving grace for the D- Street and helped it close above the neutral line. Earlier, the index made a positive start as sentiments remained up-beat on Standard & Poor’s Ratings Services report that Indian companies are improving their credit profiles by selling equity and assets, or using free operating cash flows to reduce debt. The stronger rupee gaining against the dollar too aided the sentiments further.

Gains on up-side remained capped as investors resorted to profit booking, especially in software and technology pockets, which remained in somber mood since beginning, after sector major Tata Consultancy Services (TCS) hinted towards a subdued Q4 growth based on potential impact from seasonally slower demand in its biggest markets and continued demand volatility at home that the company flagged back in November.

Meanwhile, sectoral indices on the NSE made positive closing. CNX Metal up by 1.97%, CNX FMCG up by 1.09%, CNX MNC up by 0.97%, CNX Finance up by 0.90% and CNX Bank up by 0.59% remained the gainers in the trade. While, CPSE down by 2.26%, CNX IT down by 2.19%, CNX PSE down by 1.47%, CNX Energy down by 0.63%  and CNX Realty down by 0.37% 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 1.43% and reached 16.8825. The 50-share CNX Nifty increased by 7.40 points or 0.11% to settle at 6,524.05 7.40.

Nifty March 2014 futures closed at 6,550.20 on Wednesday at a premium of 26.15 points over spot closing of 6,524.05, while Nifty April 2014 futures ended at 6598.85 at a premium of 74.80 points over spot closing. Nifty March futures saw addition of 0.29 million (mn) units, taking the total outstanding open interest (OI) to 19.95 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 122.65 compared with spot closing of 121.90. The number of contracts traded was 12,188.

Tata Steel March 2014 futures were at a premium of 1.90 points at 358.30 compared with spot closing of 356.40. The number of contracts traded was 27,022.

Yes Bank March 2014 futures traded at a premium of 2.00 points at 367.55 compared with spot closing of 365.55. The number of contracts traded was 10,555.

Reliance Industries March 2014 futures traded at a premium of 2.60 points at 905.50 compared with spot closing of 902.90. The number of contracts traded was 18,997.

ICICI Bank March 2014 futures traded at a premium of 6.60 points at 1216.50 compared with spot closing of 1209.90. The number of contracts traded was 16,961.

Among Nifty calls, 6,600 SP from the March month expiry was the most active call with an addition of 0.04 million open interest.

Among Nifty puts, 6,400 SP from the March month expiry was the most active put with an addition of 0.04 million open interest.

The maximum OI outstanding for Calls was at 6,600 SP (5.22 mn) and that for Puts was at 6,400 SP (6.26 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6541.5 -- Pivot Point 6529.75 - Support -- 6506.3.

The Nifty Put Call Ratio (PCR), finally stood at 1.38 for March month contract. The top five scrips with highest PCR on OI were HDFC 1.91, Ambuja Cement 1.88, ITC 1.54, Hindalco 1.36 and Ultra Cement 1.30.

Among most active underlying, State Bank of India witnessed  contraction of 0.14 million of Open Interest in the March month futures contract, followed by Reliance Industries witnessing  contraction  of 0.01 million of Open Interest in the March month contract; United Spirits  witnessed contraction of 0.55 million of Open Interest in the March month futures. TCS witnessed an addition of 0.12 million of Open Interest in the March month contract and Infosys witnessed an addition of 0.28 million in Open Interest in the expiring March month's future contract