Nifty ends within hailing distance of 6700 levels

Exhibiting breathtaking show-of-strength, the Nifty, after rallying around 6.5 per cent in March series, added hefty gains on the first day of fresh F&O series to thump at the doors of the all-new 6700 level. Nifty rose to its historic high level for the fifth straight day on account of buying by foreign funds mainly in banking stocks after RBI extended the deadline for banks to implement BASEL III norms by a year to 2019. Increased fund flows that strengthened the rupee below crucial 60/$ level also underpinned market sentiment. After a positive start, the index started moving northwards above neutral line throughout the session, though some volatility was witnessed near the end of the session, the index regained momentum and closed near the 6700 level.

Meanwhile, sectoral indices on the NSE made positive closing. CNX PSU Bank up by 4.73, CNX Metal up by 1.56%, CNX Energy up by 1.38%, CNX Realty up by 1.38% and CNX Bank up by 1.19% remained the gainers in the trade. While, CNX Media down by 0.03% were remained the only the loser in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 1.40% and reached 18.6300. The 50-share CNX Nifty increased by 54.15 points or 0.82% to settle at 6,695.90.

Nifty April 2014 futures closed at 6,683 on Thursday at a premium of 41.25 points over spot closing of 6,641.75, while Nifty May 2014 futures ended at 6,716.20 at a premium of 74.45 points over spot closing. Nifty April futures saw an addition of 4.39 million (mn) units, taking the total outstanding open interest (OI) to 16.08 mn units. The near month April 2014 derivatives contract will expire on April 24, 2014.

From the most active contracts, HDFC Bank April 2014 futures were at a premium of 12.25 points at 757.30 compared with spot closing of 745.05. The number of contracts traded was 26,735.

State Bank of India April 2014 futures traded at a premium of 7.90 points at 1,850.90 compared with spot closing of 1,843.00. The number of contracts traded was 38,363.

ICICI Bank April 2014 futures traded at a premium of 9.05 points at 1,268.15 compared with spot closing of 1,259.10. The number of contracts traded was 27,715.

United Spirits April 2014 futures traded at a premium of 11.40 points at 2,671.40 compared with spot closing of 2,660.00. The number of contracts traded was 22,558.Among Nifty calls, 6,700 SP from the April month expiry was the most active call with contraction of 0.19 million open interest.

Among Nifty puts, 6,400 SP from the April month expiry was the most active put with an addition of 0.90 million open interest.

The maximum OI outstanding for Calls was at 6,700 SP (3.29 mn) and that for Puts was at 6,400 SP (3.36 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6677.3 -- Pivot Point 6638.4 - Support -- 6602.85.

The Nifty Put Call Ratio (PCR), finally stood at 1.05 for April month contract. The top five scrips with highest PCR on OI were Shriram Transport Finance Company 1.67, Century Textile and Industries 1.61, ONGC 1.47, HDFC 1.21, and ITC 1.15.

Among most active underlying, State Bank of India witnessed with  an addition of 0.05 million of Open Interest in the April month futures contract, followed by United Spirits  witnessing  contraction  of 1.12 million of Open Interest in the April month contract; HDFC Bank witnessed an addition of 0.26 million of Open Interest in the April month futures. Reliance Industries witnessed an addition of 0.36 million of Open Interest in the April month contract and TCS witnessed an addition of 0.03 million in Open Interest in the expiring April month's future contract