Nifty ends above 6,700 levels on the back of strong dollars inflows

The Nifty extended its winning streak for the eighth consecutive session and ended at fresh closing high, above 6,700 level on the back of strong dollars inflows on expecting that Indian economy will grow faster after a new government is in place after the Lok Sabha polls end this May. The index, after a gap-up start, witnessed volatility amid a stirring tussle between bulls and bears, which got amplified near the end of the trade as it lost ground and slipped into the red, however, it recovered soon and closed with respectable 8.30 points above the neutral line. Sentiments remained up-beat since morning on Economic Outlook Survey by FICCI, which pegged India’s economic growth to pick up and reach 5.5 percent in 2014-15, as industrial output will recover to expand at 3.3 percent. The industry body also pegged the agriculture and services sector growth in the next financial year, at 3.3 percent and 7 percent respectively. Buying in metal stocks too supported the sentiments on expectations that any move by China to step up infrastructure spending would boost demand for industrial metals.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 16.06% and reached 21.6225. The 50-share CNX Nifty increased by 8.30 points or 0.12% to settle at 6,704.20.

Nifty April 2014 futures closed at 6,739.65 on Monday at a premium of 35.45 points over spot closing of 6,704.20, while Nifty May 2014 futures ended at 6,772.85 at a premium of 68.65 points over spot closing. Nifty April futures saw an addition of 0.10 million (mn) units, taking the total outstanding open interest (OI) to 17.01 mn units. The near month April 2014 derivatives contract will expire on April 24, 2014.

From the most active contracts, Unitech April 2014 futures were at a premium of 0.20 points at 14.15 compared with spot closing of 13.95. The number of contracts traded was 12,798.

Hindalco Industries April 2014 futures were at a premium of 0.55 points at 141.55 compared with spot closing of 141.00. The number of contracts traded was 20,221.

Tata Steel April 2014 futures traded at a premium of 3.05 points at 396.85 compared with spot closing of 393.80. The number of contracts traded was 25,473.

Yes Bank of India April 2014 futures traded at a discount of 0.15 points at 415.35 compared with spot closing of 415.50. The number of contracts traded was 12,999.

Reliance Industries April 2014 futures traded at a premium of 0.05 points at 937.85 compared with spot closing of 937.80. The number of contracts traded was 24,198.  Among Nifty calls, 6,700 SP from the April month expiry was the most active call with an addition of 0.37 million open interest.

Among Nifty puts, 6,500 SP from the April month expiry was the most active put with an addition of 0.35 million open interest.

The maximum OI outstanding for Calls was at 6,700 SP (3.67 mn) and that for Puts was at 6,500 SP (3. 68mn).

The respective Support and Resistance levels of Nifty are: Resistance 6735.37 -- Pivot Point 6698.88 - Support -- 6667.72.

The Nifty Put Call Ratio (PCR), finally stood at 4.07 for April month contract. The top five scrips with highest PCR on OI were NHPC 7.50, Auro Pharma 7.00, Kotak Bank 4.50, Hindalco 4.13, and Asian Paint 1.87.

Among most active underlying, State Bank of India witnessed with  contraction of 0.10 million of Open Interest in the April month futures contract, followed by United Spirits  witnessing  contraction  of 0.33 million of Open Interest in the April month contract; HDFC Bank witnessed an addition of 0.17 million of Open Interest in the April month futures. Reliance Industries witnessed an addition of 0.26 million of Open Interest in the April month contract and TCS witnessed contraction of 0.12 million in Open Interest in the expiring April month's future contract