Nifty ends with modest gains for second straight day ahead of June F&O expiry

Key benchmark Nifty snapped the day’s trade with modest gains for second straight day ahead of June F&O expiry, amid range bound trade led by media, banking, metals and software shares. Market traded near its crucial 5,150 mark for most part of the day’s trade but ended a tad below that level. On the global front, most of the Asian markets ended in green after four days of losing streak due to overnight upmove in the US market but gains remained capped as concern over the upcoming Euro-Zone Summit that the world leaders will not be able to tackle the crisis effectively. Moreover, European shares edged up in the trade today but the euro was flat, with many investors out of the markets after Germany reiterated its staunch opposition to common bonds to share the euro zone’s debt burden ahead of a European crisis summit. Back home, the rupee traded marginally lower at 57.10 against the dollar at the time of the end of the market hours.

The domestic market opened with notable gains tracking positive global leads with Nifty recapturing its crucial 5,150 mark. Moreover, the sentiments were also supported by power companies stocks like, Reliance Infrastructure and Tata Power which rallied in the trade after Delhi Electricity Regulatory Commission hiked power tariffs in Delhi that would be effective from July 1, 2012. Domestic prices went up by 24% and commercial prices up by 19.5%. Afterwards market traded firmly near its crucial 5,150 mark. The sentiment were also supported by SEBI’s recent decision to relax rules that govern Offer for Sale (OFS) and Institutional Placement Programme (IPP) mechanisms which will aid firms to smoothly conduct disinvestment process and also abide by the public shareholding regulations. In the mid noon trade market lost its stem and pared some of its gains as cues from the money market remained subdued as the Indian rupee, despite recent measures announced by RBI, extended its streak of depreciation against the dollar. But, buying interest in stocks like HCL Tech (1.86%), Infosys (1.07%), Satyam Computers (2.12%) and TCS (1.14%) helped the market to end with a marginal gain of 20 points. Finally, Nifty snapped the session in the green but, below its crucial 5,150 mark.

Back home, most of the sectoral indices on the NSE settled in the positive territory with CNX Metal gaining the most, up 1.67% followed by CNX Media up by 1.47% and CNX IT up by 0.90% while, CNX Auto declined by 0.67% remained the lone loser in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, rose 0.69% and reached 20.37.

The India VIX witnessed an addition of 0.69% at 20.37 as compared to its previous close of at 20.23 on Tuesday.

The 50-share S&P CNX Nifty gained 21.10 points or 0.41% to settle at 5,141.90.

Nifty June 2012 futures closed at 5,139.65 at a discount of 2.25 points over spot closing of 5,141.90, while Nifty July 2012 futures were at 5160.20 at a premium of 18.30 points over spot closing. The near month June 2012 derivatives contract will expire on Thursday i.e. June 28, 2012. Nifty June futures saw contraction of 2.26 million (mn) units taking the total outstanding open interest (OI) to 12.96 mn units.

From the most active contract, Tata Motors June 2012 futures were at a premium of 0.30 point at 239.20 compared with spot closing of 238.90. The number of contracts traded was 16,477.

Tata Steel July 2012 futures were at a discount of 13.75 point at 407.15 compared with spot closing of 420.90. The number of contracts traded was 11,862.

ICICI Bank July 2012 futures were at a premium of 4.35 point at 854.35 compared with spot closing of 850.00. The number of contracts traded was 14,115.

Tata Steel June 2012 futures were at a discount of 0.25 points at 420.65 compared with spot closing of 420.90. The number of contracts traded was 14,440.

ICICI Bank June 2012 futures were at a premium of 0.95 point at 850.95 compared with spot closing of 850.00. The number of contracts traded was 19,954. 

 Among Nifty calls, 5200 SP from the Jun month expiry was the most active call with contraction of 0.45million open interest.

Among Nifty puts, 4800 SP from the Jun month expiry was the most active put with contraction of 0.15 million open interest.

The maximum OI outstanding for Calls was at 5200 SP (7.89mn) and that for Puts was at 4800 SP (8.96mn).

The respective Support and Resistance levels are: Resistance 5158.25-- Pivot Point 5143.75--Support 5127.4.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.99 for June-month contract.

The top five scrips with highest PCR on OI were Orient Bank 5.00, TATA Chemical 3.00, Welcorp 3.00, LICHSGFIN 2.26, and ACC 1.71

Among the most active underlying, Suzlon witnessed an addition of 24.57 million of Open Interest in the June month futures contract followed by IFCI which witnessed contraction of 11.45 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed contraction of 6.98 million in the June month futures. Also, Jaiprakash Associates witnessed contraction of 5.59 million in Open Interest in the June month contract. Finally, Tata Motors witnessed contraction of 2.10 million of Open Interest in the near month futures contract.