Final hour recovery pulls Nifty higher; Software, Banking stocks spurt

The local benchmark, Nifty ended the volatile day of trade with a marginal gain, led by buying in IT and banking stocks. However, market traded choppy till mid afternoon trade but ended in the green supported by strong recovery witnessed in final hour of trade. Earlier, the Indian equity market started lower on the back of weak global cues as Asian stocks fell in the aftermath of disappointing US job data. Afterwards, the markets continued its downtrend till early noon session when some selling witnessed in key heavyweights put pressure on the market while, widening in the cut in the regional peers too weighed down on the sentiments. In the early noon trade, the local index pared most of its losses as investors showed some buying interests in blue chip stocks after the recent drubbing. Market traded in the tight range but, in the red during mid afternoon trade. Meanwhile, all the PSU oil marketing companies, whether upstream or downstream closed lower in the trade with a cut in a range of 1-2 percent as the EGoM meeting on gas allocation and pricing scheduled for June 9 got called off, moreover, Standard Chartered IDR closed with a cut of more than 17 per cent after market regulator SEBI said the bank may not be required to convert its IDRs into shares, while Sun TV extended its gains, rebounding after the battering on Thursday and rose over 7 per cent. But, it was the final hour of trade, where Nifty changed its gear and made a decent pull back paring all its losses and got back in green terrain on the back of buying witnessed in software and banking space on the NSE. Finally, the index snapped the day’s trade with a marginal gain and regained its crucial 5,500 level. 

On the global front, The US markets closed lower on Friday on getting weak employment data, weakest since September last year and All the Asian equity indices which were opened today closed the day’s trade in the negative terrain on Monday. Moreover, all the European counterparts were trading lower in the trade at this point of time. Back home, on the sectoral front on the NSE, CNX IT remained the biggest gainer, up by 0.74% followed by Bank Nifty, CNX Realty and CNX Infra. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, jumped 3.40% and reached 18.21, while S&P Nifty closed at 5,532.05 gaining 0.28%. The markets registered volumes of over Rs 0.74 lakh crore while the turnover for NSE F&O segment remained higher compared to Friday at over Rs 0.84 lakh crore.

The India VIX added 3.40% at 18.21 on Monday as compared to its previous close of 17.61 on Friday.  

The 50-share S&P CNX Nifty added 15.30 points or 0.28% and settled at 5,532.05.

Nifty June 2011 futures closed at 5,536.50, at a premium of 4.45 points over spot closing of 5,532.05, while Nifty July 2011 futures were at 5,550.50 at a premium of 18.45 points over spot closing. The near month June 2011 derivatives contract expires on Thursday, June 30, 2011. Nifty June futures saw addition of 2.26% or 0.55 million (mn) units, taking the total outstanding open interest (OI) to 25.35 mn units.

From the most active underlying, SBI's June 2011 futures closed at a premium of 7.00 points at 2326.00 compared with spot closing of 2319.00. The number of contracts traded was 19,918.

Tata Motors June 2011 futures were at a premium of 5.65 point at 1027.85 compared with spot closing of 1022.20. The number of contracts traded was 19,193.

ICICI Bank June 2011 futures were at a premium of 2.60 points at 1062.05 compared with spot closing of 1059.45. The number of contracts traded was 11,577.

Tata Steel June 2011 futures were at a premium of 1.80 at 570.00 compared with spot closing of 568.20. The number of contracts traded was 10,390.

Sun TV June 2011 futures were at a premium of 0.05 points at 306.40 compared with spot closing of 306.35. The number of contracts traded was 17,784. Among Nifty puts, 5500 SP from the June month expiry was the most active put with addition of 0.83 million or 14.68%.

Among Nifty calls, 5600 SP from the June month expiry was the most active put with contraction of 0.27 million or 4.77%.The maximum Call OI outstanding for Calls was at 5600 SP (5.41 mn) and that for Puts at 5500 SP (6.51 mn).

The respective Support and Resistance levels are: Resistance 5556.51-- Pivot Point 5518.18-- Support 5493.71.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.35 for June -month contract.

The top five scrips with highest PCR on OI were Sintex - 2.00, MRF-2.00, Piramal Healthcare - 1.60, Sun Pharmaceuticals - 1.35 and Punjab National Bank -1.06.Among most active underlying, State Bank of India (SBI) witnessed an addition of 3.72% of Open Interest (OI) in the June month futures contract followed by Tata Motors which added 4.55% of Open Interest (OI) in the near month contract. Meanwhile SUNTV witnessed a contraction of 16.27% of OI in the June month futures. Lastly, Reliance Industries witnessed an addition of 0.72% of OI in the June month futures.