Nifty recoups some losses; ends short of 6,500 level on Friday

Nifty fared comparatively better on Friday and recouped some losses made in the previous session to end a tad below the 6500 level amid a high volatility. After making a gap-up start, there were some instances of profit booking but at no point in the day the index looked losing its hold of the positive start. The index seemed to consolidate in a tight range throughout the session. Sentiments remained up-beat on report that foreign institutional investors (FIIs) bought shares worth a net Rs 722.02 crore on Thursday, as per provisional data from the National Stock Exchange. Moreover, appreciation in Indian rupee too supported the up-move.

However, gains remained capped on report that foreign direct investment (FDI) into India grew by a meager 1.5 percent to $2.18 billion in January and for the April-January period; foreign investment inflows dipped 2 percent to $18.74 billion from $19.1 billion during the corresponding period of the previous fiscal.

Meanwhile, sectoral indices on the NSE made positive closing. CNX Realty up by 2.21%, CNX Media up by 1.97%, CNX Metal up by 1.96%, CNX PSU Bank up by 1.40% and CNX Auto up by 0.89% remained the gainers in the trade. While, CNX Energy down by 1.52%, CNX PSE down by 0.93% and  CNX Pharma down by 0.43% 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 4.29% and reached 16.1850. The 50-share CNX Nifty increased by 10.10 points or 0.16% to settle at 6,493.20.

Nifty March 2014 futures closed at 6,510.70 on Friday at a premium of 17.50 points over spot closing of 6,493.20, while Nifty April 2014 futures ended at 6562.60 at a premium of 69.40 points over spot closing. Nifty March futures saw an addition of 0.85 million (mn) units, taking the total outstanding open interest (OI) to 20.14 mn units. The near month March 2014 derivatives contract will expire on March 27, 2014.

From the most active contracts, HDFC Bank March 2014 futures were at a premium of 5.35 points at 739.30 compared with spot closing of 733.95. The number of contracts traded was 13,827.

Tata Steel March 2014 futures were at a premium of 1.60 points at 363.70 compared with spot closing of 362.10. The number of contracts traded was 25,860.

Reliance Industries March 2014 futures traded at a premium of 4.00 points at 888.60 compared with spot closing of 884.60. The number of contracts traded was 22,238.

ICICI Bank March 2014 futures traded at a premium of 5.80 points at 1203.00 compared with spot closing of 1197.20. The number of contracts traded was 18,724.

Axis Bank March 2014 futures traded at a discount of 16.25 points at 1376.15 compared with spot closing of 1392.40. The number of contracts traded was 98,595.

Among Nifty calls, 6,600 SP from the March month expiry was the most active call with an addition of 0.85 million open interest.

Among Nifty puts, 6,400 SP from the March month expiry was the most active put with an addition of 0.06 million open interest.

The maximum OI outstanding for Calls was at 6,600 SP (6.60 mn) and that for Puts was at 6,400 SP (6.70 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6515.5 -- Pivot Point 6500.6 - Support -- 6478.3.

The Nifty Put Call Ratio (PCR), finally stood at 1.24 for March month contract. The top five scrips with highest PCR on OI were HDFC 1.87, ITC 1.43, Ultra Cement 1.66, Hindalco 1.59, ITC 1.36 and Grasim 1.32.

Among most active underlying, State Bank of India witnessed with  marginal  addition in Open Interest in the March month futures contract, followed by United Spirits witnessing  contraction  of 0.35 million of Open Interest in the March month contract; Reliance Industries  witnessed contraction of 0.17 million of Open Interest in the March month futures. TCS witnessed contraction of 0.18 million of Open Interest in the March month contract and HDFC Bank witnessed contraction of 0.30 million in Open Interest in the expiring March month's future contract