Nifty closes above 6750 levels; posting its 10th consecutive day of gains

After opening gap-up and consolidating for most part of the session, the nifty exhibited boisterous performance in the second half to close above 6750 levels, posting its 10th consecutive day of gains. Second day of month April turned out to be a remarkable day of trade for nifty with banking stocks staging a stellar run by rallying over 5 percentage towards the end of the session on hope of improving macroeconomic situation in anticipation of victory of BJP’s prime ministerial candidate Narendra Modi. Rally in public sector oil marketing companies (OMCs) like, HPCL, BPCL and IOC too aided the sentiments after the under-recovery on High Speed Diesel, PDS Kerosene and Domestic LPG declined. Further, Capital inflows by foreign funds and appreciating rupee also propped up the index.

Meanwhile, sectoral indices on the NSE made positive closing. CNX PSU Bank up by 3.42, CNX Realty up by 2.27%, CNX Media up by 1.90%, CNX Energy up by 1.32% and CNX Pharma up by 1.30% remained the gainers in the trade. While CNX FMCG down by 1.55% and CNX Metal down by 0.53% were remained the loser in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 2.55 % and reached 21.2125. The 50-share CNX Nifty increased by 31.50 points or 0.47% to settle at 6,752.55. 

Nifty April 2014 futures closed at 6,790.20 on Wednesday at a premium of 37.65 points over spot closing of 6,752.55, while Nifty May 2014 futures ended at 6,827.00 at a premium of 74.45 points over spot closing. Nifty April futures saw an addition of 0.24 million (mn) units, taking the total outstanding open interest (OI) to 17.27 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 6.15 points at 740.60 compared with spot closing of 734.45. The number of contracts traded was 14,721.

Tata Motors April 2014 futures were at a premium of 2.15 points at 415.65 compared with spot closing of 413.50. The number of contracts traded was 14,229.

Ranbaxy Laboratories April 2014 futures traded at a premium of 3.70 points at 407.05 compared with spot closing of 403.35. The number of contracts traded was 25,021.

Aurobindo Pharma April 2014 futures traded at a premium of 3.15 points at 562.80 compared with spot closing of 559.65. The number of contracts traded was 16,980.

Reliance Capital April 2014 futures traded at a premium of 3.10 points at 359.05 compared with spot closing of 355.95. The number of contracts traded was 14,941.Among Nifty calls, 6,800 SP from the April month expiry was the most active call with an addition of 0.21 million open interest.

Among Nifty puts, 6,600 SP from the April month expiry was the most active put with an addition of 0.58 million open interest.

The maximum OI outstanding for Calls was at 6,700 SP (3.17 mn) and that for Puts was at 6,600 SP (4.89 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6769.5 -- Pivot Point 6746.55 - Support -- 6729.6.

The Nifty Put Call Ratio (PCR), finally stood at 1.27 for April month contract. The top five scrips with highest PCR on OI were SR Trans Finance 1.37, Century text 1.28, HDFC 1.18, ONGC 1.11, and Bank Baroda 1.09.

Among most active underlying, State Bank of India witnessed with an addition  of 0.12 million of Open Interest in the April month futures contract, followed by United Spirits  witnessing  contraction  of 0.06 million of Open Interest in the April month contract; HDFC Bank witnessed an addition of 0.61 million of Open Interest in the April month futures. Reliance Industries witnessed an addition of 0.64 million of Open Interest in the April month contract and TCS witnessed an addition of 0.20 million of Open Interest in the expiring April month's future contract