Nifty add another more than a percent on broad based buying

Jubilation continued at the Indian equity markets and the new series got an overwhelming start with benchmarks gaining another more than a percent.Across the board buying that started in last session intensified today and barring the auto sector all other gauges showed good gains for the day, the other rate sensitive sectors viz; realty and banking were up by 2.5-3.5%. Though, the weekly inflation number has increased but traders went for some value buying at lower levels and helped all the beaten down sectors to move higher. The intermittently coming good earnings number too supported the strength in the markets; RPower HPCL, BGR Energy Systems and NHPC all were commended on reporting good set of numbers. However, Tata Motors despite reporting decent numbers languished in red, even when its iconic brand JLR reported a turnaround; the investors remained concerned about the rising product cost affecting the profit margins of the company in coming quarters. The consolidated profit after tax of the Tata Motors group for the year shot up to Rs 9,274 crore in 2010-11, up by 260.71% from a profit of Rs 2,571 crore in the previous year. The company has approved sub-division of its share from Rs 10 per share to 5 shares of Rs 2 each.

On the sectoral front, all the gauges gained considerably with CNX Realty gaining the maximum traction, up by 3.5%, followed by Bank Nifty up by 2.43%, CNX Infra gained 1%, while the CNX IT too made a bounce back and moved higher by 0.87%. From the global markets, barring Chinese and the Japanese indices all other Asian markets closed in green. The European markets too have made a positive start and all the major indices are trading higher by half-to-one-percent each. However, the US stock futures are trading mixed in screen trade, indicating a cautious start of the markets there.

The India VIX lost 10.06% at 17.25 on Friday as compared to its previous close of 19.18 on Thursday.  

The 50-share S&P CNX Nifty added 63.75 points or 1.18% and settled at 5,476.10.

Nifty June 2011 futures closed at 5,472.00, at a discount of 4.10 points over spot closing of 5,476.10, while Nifty July 2011 futures were at 5,481.35 at a premium of 5.25 points over spot closing. The near month June 2011 derivatives contract expires on Thursday, June 30, 2011. Nifty June futures saw addition of 9.71% or 2.02 million (mn) units, taking the total outstanding open interest (OI) to 22.85 mn units.

From the most active underlying, Tata Motors June 2011 futures closed at a premium of 2.70 points at 1089.10 compared with spot closing of 1086.40. The number of contracts traded was 52,925.

SBI’s June 2011 futures were at a premium of 11.95 point at 2245.95 compared with spot closing of 2234.00. The number of contracts traded was 26,850.

Tata Steel June 2011 futures were at a discount of 0.90 points at 583.40 compared with spot closing of 584.30. The number of contracts traded was 25,135.

ICICI Bank June 2011 futures were at a discount of 12.65 at 1060.05 compared with spot closing of 1072.70. The number of contracts traded was 19,821.

Axis Bank June 2011 futures were at a discount of 4.70 points at 1214.00 compared with spot closing of 1218.70. The number of contracts traded was 11,593.

For Nifty calls, 5500 strike price (SP) from the June series was the most active call with an addition of 0.53 million or 19.29%.

Among Nifty puts, 5400 SP from the June month expiry was the most active put with an addition of 1.36 million or 33.29%.

The maximum Call OI outstanding was at 5500 SP (3.30mn) and that for Puts at 5400 SP (5.43mn).

The respective Support and Resistance levels are: Resistance 5503.4 -- Pivot Point 5458.5 -- Support 5431.2.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.31 for June -month contract.

The top five scrips with highest PCR on OI were Central Bank of India -2.00, The India Cements - 2, Punjab National Bank -1.93- Dr. Reddy's Laboratories - 1.25, Bajaj Auto-1.25.

Among most active underlying, Tata Motors (SBI) witnessed an addition of 20.92% in the June month futures contract, followed by State bank of India (SBI) which added 3.05% of Open Interest (OI) in the near month contract. Meanwhile, Tata Steel too witnessed an addition of 7.94% in the June month futures coupled with ICICI Bank which added 2.63% in the June month future contract.