Nifty closes at all-time high level on buying in blue chip stocks

Boisterous Nifty exhibited an enthusiastic performance on Monday, by rallying over one percentage points and breaking a lot of psychological levels in their northbound journey. Index closed at an all-time high of 6,583 levels as investors flocked to select blue chip stocks that too at the start of the crucial F&O expiry week. Buoyed by firm global cues, index made a positive start, kept on gaining strength and stopped only with the closing of the trade. Sentiments remained up-beat since morning on report that retail inflation for farm workers and rural labourers eased to 8.14 percent and 8.27 percent respectively in February from 9.08 percent and 9.21 percent in January, mainly due to decrease in prices of food items. Some support also came after Planning Commission Deputy Chairman Montek Singh Ahluwalia exuded confidence that whoever forms the next government would be in a position to implement key reforms, including the Goods and Services Tax (GST). Rally in banking shares too aided the sentiments on expectation that Reserve Bank of India (RBI) will hold key rates in its next monetary policy review as the Consumer Price Index (CPI) fell to a 25-month low in February. Moreover, appreciation in Indian rupee also supported the up-move.

Meanwhile, sectoral indices on the NSE made positive closing. CNX Bank up by 2.75%, CNX PSE up by 2.51%, CNX Finance up by 2.50%, CNX Energy up by 2.21% and CNX Auto up by 0.89% remained the gainers in the trade. While, CNX Pharma down by 0.61% and CNX IT down by 0.14% were remained the top losers in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 4.17% and reached 16.5375. The 50-share CNX Nifty increased by 88.60 points or 1.36% to settle at 6,583.50.

Nifty March 2014 futures closed at 6,598.85 on Monday at a premium of 15.35 points over spot closing of 6,583.50, while Nifty April 2014 futures ended at 6656.35 at a premium of 72.85 points over spot closing. Nifty March futures saw an addition of 0.49 million (mn) units, taking the total outstanding open interest (OI) to 20.54 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 3.60 points at 756.35 compared with spot closing of 752.75. The number of contracts traded was 21,400.

Yes Bank March 2014 futures traded at a premium of 0.40 points at 379.90 compared with spot closing of 379.50. The number of contracts traded was 16,915.

Tata Steel March 2014 futures were at a discount of 0.40 points at 363.60 compared with spot closing of 364.00. The number of contracts traded was 19,759.

Reliance Industries March 2014 futures traded at a premium of 0.95 points at 906.95 compared with spot closing of 906.00. The number of contracts traded was 25,886.

ICICI Bank March 2014 futures traded at a premium of 4.30 points at 1245.15 compared with spot closing of 1240.85. The number of contracts traded was 25,395.Among Nifty calls, 6,600 SP from the March month expiry was the most active call with contraction of 0.81 million open interest.

Among Nifty puts, 6,400 SP from the March month expiry was the most active put with an addition of 0.10 million open interest.

The maximum OI outstanding for Calls was at 6,600 SP (5.75 mn) and that for Puts was at 6,400 SP (6.81 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6613.17 -- Pivot Point 6561.83 - Support -- 6532.17.

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 2.02, Hindalco 1.63, ITC 1.47, Ultra Cement 1.44 and Voltas 1.38.

Among most active underlying, State Bank of India witnessed with contraction  of 1.43 million of Open Interest in the March month futures contract, followed by United Spirits witnessing  contraction  of 2.27 million of Open Interest in the March month contract; Reliance Industries  witnessed contraction of 1.25 million of Open Interest in the March month futures. HDFC Bank witnessed contraction of 3.01 million of Open Interest in the March month contract and TCS witnessed contraction of 0.24 million in Open Interest in the expiring March month's future contract