Nifty snaps June F&O series with a massive gain of over 4.5%

The domestic index S&P CNX Nifty finished the June F&O series with a massive gain of about 225 points or 4.60, after plunging over 5% in May series. Today Nifty extended its consolidation mood and snapped the session with modest gains for the third straight day ahead of the two-day European Union summit which begins today. Though, trade remained choppy on account of the derivatives expiry, with the volatility rising marginally. Moreover, the benchmark continued trading in tight band following the similar trend over the past few days. On the global front, most of Asian equity indices ended day’s trade in red while, European counters were also struggling at this point of time on concerns that the European summit will not be able to solve problems of the euro zone.

Key domestic bourses opened on a flat note for third consecutive session on Thursday as investors remained on the sideline ahead of the June F&O series expiry. Globally, investors remained cautious ahead of European Union summit scheduled for June 28-29 in Brussels. Afterwards, market traded above 5,150 mark till first half of the day’s trade amid hopes that Prime Minister Manmohan Singh will take steps to boost the economy moreover, appreciation in rupee also supported the sentiments. Meanwhile, Power stocks continued witnessing buying consecutively for the second day after Delhi Electricity Regulatory Commission hiked power tariffs in Delhi that would be effective from July 1. But, in the second half, market witnessed volatility and dipped in the red after banking stocks came under some selling pressure on report that global banking major HSBC is likely to exit two Indian private sector lenders - Axis and Yes Bank. Moreover, subdued cue from European counters too dampened the sentiments. Meanwhile, India’s crucial monsoon rains were again below average last week and failed to cover as much of the country as they should have, the weather office said on its website, fanning concerns over output of key crops despite reassurances from weather officials. Nifty, however, negotiated a positive close led by FMCG, Power and PSU stocks.

Back home, most of the sectoral indices on the NSE settled in the positive territory with CNX FMCG gaining the most, up 0.94% followed by CNX IT up by 0.22% and CNX Metal up by 0.15% while, CNX Media and CNX PSU Bank declined by 0.62% and 0.47% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, rose 1.23% and reached 20.62.

The India VIX witnessed an addition of 1.23% at 20.62 as compared to its previous close of at 20.37 on Wednesday.

The 50-share S&P CNX Nifty gained 7.25 points or 0.14% to settle at 5,149.15.

Nifty July 2012 futures closed at 5,155.75 at a premium of 6.60 points over spot closing of 5,149.15, while Nifty August 2012 futures were at 5176.55 at a premium of 27.40 points over spot closing. The near month July 2012 derivatives contract will expire on Thursday i.e. July 26, 2012. Nifty July futures saw an addition of 4.88 million (mn) units taking the total outstanding open interest (OI) to 18.08 mn units.

From the most active contract, Tata Motors July 2012 futures were at a discount of 2.45 point at 237.85 compared with spot closing of 240.30. The number of contracts traded was 19,209.

Tata Steel July 2012 futures were at a discount of 12.70 point at 414.25 compared with spot closing of 426.95. The number of contracts traded was 18,765.

ICICI Bank July 2012 futures were at a discount of 0.30 point at 854.60 compared with spot closing of 854.90. The number of contracts traded was 24,029.

Axis Bank July 2012 futures were at a discount of 5.50 points at 974.50 compared with spot closing of 980.00. The number of contracts traded was 29,519.

SBI July 2012 futures were at a discount of 21.45 point at 2075.55 compared with spot closing of 2097.00. The number of contracts traded was 32,031. 

Among Nifty calls, 5300 SP from the July month expiry was the most active call with an addition of 1.20 million open interest.

Among Nifty puts, 5000 SP from the July month expiry was the most active put with an addition of 1.76 million open interest.

The maximum OI outstanding for Calls was at 5300 SP (4.48mn) and that for Puts was at 5000 SP (5.77mn).

The respective Support and Resistance levels are: Resistance 5163.7-- Pivot Point 5144.5--Support 5129.95.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.48 for July -month contract.

The top five scrips with highest PCR on OI were ABAN 5.67, PNB 2.78, DIVISLAB 2.00, BEML 1.50, and ACC 1.45

Among the most active underlying, Suzlon witnessed an addition of 20.88 million of Open Interest in the July month futures contract followed by IFCI which witnessed contraction of 12.84 million of Open Interest in the near month contract. Meanwhile, LITL witnessed an addition of 24.38 million in the July month futures. Also, Jaiprakash Associates witnessed contraction of 7.39 million in Open Interest in the July month contract. Finally, Tata Motors witnessed an addition of 3.45 million of Open Interest in the near month futures contract.