Nifty witnesses remarkable recovery on SBI's stellar Q4 numbers

Buoyed by stellar SBI Q4 numbers, domestic benchmark -- S&P Nifty -- negotiated a positive close after trading in the red for most part of the Friday’s session. Market witnessed a remarkable turnaround in the late trade supported by better than expected fourth quarter result. However, global cues continued to remain unsupportive as the US markets slumped again overnight on weak economic data and worries of the Euro zone while, all the Asian equity indices too tumbled on Friday as investors remained concerned over Spain and Greece in Eurozone. Adding fuel to the fire, Moody’s Investors Service cut the long-term debt and deposit ratings of the 16 Spanish banks, saying the government's ability to support some banks had weakened. Back home, rupee continued to depreciate and touched an all time low of 54.82 against the dollar and trading over 54.50 mark at this point of time.

Earlier, after a day of relief, Indian benchmark resumed its south-bound journey in the Friday’s morning trade with a gap-down opening on the back of nagging EU woes, weak US data. Selling intensified afterwards and Nifty breached its crucial 4,800 mark tailing weak cues from other Asian counters. Meanwhile, the retail inflation data, which surged 10.36 percent in April, compared to 9.38 percent in the previous month due to a sharp increase in prices of vegetables, edible oil and milk products too dampened the sentiments and the index traded near its psychological level of 4,800 mark till early noon trade. But, stellar Q4 performance by State Bank of India (SBI) surprised investors and helped public sector banks to recover from their day’s lows. The country’s top lender has beat the investors’ expectation  by reporting 194 fold jump in its net profit to Rs 4050.27 crore for the fourth quarter ended March 31, 2012, against net profit of Rs 20.88 crore for the corresponding period last fiscal. The bank also registered a fall in non-performing assets and provisioning for bad loans in the March quarter. SBI’s outstanding performance helped the market to pare all of its losses and the index regained the green terrain. Finally, Nifty negotiated a positive closing in the late trade however, the gains remained capped due to lingering worries over euro-zone crises.

Meanwhile, most of the sectoral indices on the NSE were settled in the green, CNX PSU Bank remained the major gainer, up 2.72% followed by Bank Nifty up 1.70% and CNX FMCG up by 1.20% while CNX Auto and CNX Media declined 1.94% and 0.67% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 0.16% and reached 23.55.

The India VIX witnessed contraction of 0.17% at 23.55 as compared to its previous close of at 23.59 on Wednesday.

The 50-share S&P CNX Nifty gain 21.25 points or 0.44% to settle at 4891.45.

Nifty May 2012 futures closed at 4,888.95 at a discount of 2.50 points over spot closing of 4,891.45, while Nifty June 2012 futures were at 4,903.35 at a premium of 11.90 points over spot closing. The near month May 2012 derivatives contract will expire on Thursday i.e. May 31, 2012. Nifty May futures saw a contraction of 0.71 million (mn) units taking the total outstanding open interest (OI) to 20.76 mn units.

From the most active contract, Tata Motors May 2012 futures were at a premium of 0.75 point at 261.40 compared with spot closing of 260.65. The number of contracts traded was 26,131.

BHEL May 2012 futures were at a premium of 0.40 point at 201.65 compared with spot closing of 201.25. The number of contracts traded was 10,434.

Tata Steel May 2012 futures were at a premium of 0.35 points at 400.35 compared with spot closing of 400.00. The number of contracts traded was 21,629.

ICICI Bank May 2012 futures were at a discount of 18.00 point at 791.20 compared with spot closing of 809.20. The number of contracts traded was 20,976.

Reliance Industries May 2012 futures were at a discount of 7.10 point at 681.90 compared with spot closing of 689.00. The number of contracts traded was 14,047.

Among Nifty calls, 5200 SP from the May month expiry was the most active call with contraction of 0.03 million open interest.

Among Nifty puts, 4700 SP from the May month expiry was the most active put with addition of 0.61 million open interest.

The maximum OI outstanding for Calls was at 5200 SP (7.19mn) and that for Puts was at 4700 SP (7.01mn).

The respective Support and Resistance levels are: Resistance 4936.98-- Pivot Point 4862.96--Support 4817.43.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.83 for May -month contract.

The top five scrips with highest PCR on OI were MPHASIS 5.00, Siemens 2.34, MRPL 2.00, Asian Paint 1.52 and Hindunilvr 1.25.

Among the most active underlying, IFCI witnessed contraction of 0.31 million of Open Interest in the April month futures contract followed by RCOM which witnessed an addition of 0.19 million of Open Interest in the near month contract. Meanwhile, JP Associates witnessed an addition of 0.19 million in the April month futures. Also, Tata Motors witnessed contraction of 0.35 million in Open Interest in the April month contract. Finally, HDIL witnessed an addition of 0.61 million of Open Interest in the near month futures contract.