Nifty bounces back in style; closes at new high

After opening higher and sliding down in negative territory, Nifty pared its losses and closed at a fresh all-time high near 6,720 on back of value buying in selected blue chips stocks. Sentiments were up-beat in early morning taking cues from positive global markets. Further, Capital inflows by foreign funds steadied the index. Profit booking was seen after the Reserve Bank of India (RBI) in its first bi-monthly monetary policy decided to hold the key policy rate or the repo rate at 8 per cent but cautioned that inflation risks could resurface. Further, selling intensified as PMI manufacturing dipped to 51.3 points in March from 52.7 points in February, when it was at a year high, indicating moderate growth. Index recovered lost ground during the second half of the session and closed with respectable 16.85 points above the neutral line.

Meanwhile, sectoral indices on the NSE made positive closing. CNX IT up by 1.53, CNX Media up by 1.37%, CNX Energy up by 1.16%, CNX Pharma up by 0.41% and CNX Metal up by 0.33% remained the gainers in the trade. While CNX Bank down by 1.21%, CNX Bank down by 0.90%, CNX PSU Bank by 0.90% and CNX Realty by 0.85% were remained the loser in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 4.33% and reached 20.6850. The 50-share CNX Nifty increased by 16.85 points or 0.25% to settle at 6,721.05.

Nifty April 2014 futures closed at 6,756.25 on Tuesday at a premium of 35.20 points over spot closing of 6,721.05, while Nifty May 2014 futures ended at 6,790.00 at a premium of 68.95 points over spot closing. Nifty April futures saw an addition of 0.01 million (mn) units, taking the total outstanding open interest (OI) to 17.03 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 7.70 points at 746.00 compared with spot closing of 738.30. The number of contracts traded was 14,137.

SSLT April 2014 futures were at a premium of 1.00 points at 193.00 compared with spot closing of 192.00. The number of contracts traded was 13,063.

Tata Steel April 2014 futures traded at a premium of 0.90 points at 402.40 compared with spot closing of 401.50. The number of contracts traded was 23,611.

Yes Bank of India April 2014 futures traded at a premium of 1.90 points at 412.45 compared with spot closing of 410.55. The number of contracts traded was 15,443.

Reliance Industries April 2014 futures traded at a premium of 4.75 points at 946.15 compared with spot closing of 941.40. The number of contracts traded was 22,925.

Among Nifty calls, 6,700 SP from the April month expiry was the most active call with contraction of 0.57million open interest.

Among Nifty puts, 6,600 SP from the April month expiry was the most active put with an addition of 0.64 million open interest.

The maximum OI outstanding for Calls was at 6,700 SP (3.09 mn) and that for Puts was at 6,600 SP (4.31mn).

The respective Support and Resistance levels of Nifty are: Resistance 6743.72 -- Pivot Point 6709.58 - Support -- 6686.92.

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 SR Trans Finance 1.80, Century text 1.46, IOC 1.06, ACC 1.05, and HDFC 1.04.

Among most active underlying, State Bank of India witnessed with  contraction of 0.12 million of Open Interest in the April month futures contract, followed by United Spirits  witnessing  contraction  of 0.07 million of Open Interest in the April month contract; HDFC Bank witnessed an addition of 0.08 million of Open Interest in the April month futures. Reliance Industries witnessed an addition of 0.11 million of Open Interest in the April month contract and TCS witnessed  marginal contraction in Open Interest in the expiring April month's future contract