Nifty ends below 6,700 levels ahead of 9-phase Lok Sabha elections

Reciprocating subdued global cues and continuing its southward journey for second straight day, Nifty, the 50-share index slumped in the red in a few moments after opening a tad higher from its previous close, kept on losing ground throughout the session and closed with a cut of over half a percent around its intraday low levels. Further investors were jittery ahead of beginning of the 9-phase Lok Sabha elections on Monday 07, April 2014 amid weak global cues. Sentiments on street were down since morning as the US markets ended modestly lower in last session ahead of the release of monthly jobs report on Friday. Sentiments remained down-beat on account of the report showing a bigger than expected increase in weekly jobless claims. Sentiments got dampened after the International Monetary Fund (IMF) reiterated that internal factors played a much larger role in pulling down India's economic growth. Depreciation in Indian rupee against dollar further added to the pessimistic sentiments.

Meanwhile, sectoral indices on the NSE made negative closing. CNX Realty up by 3.04%, CNX Metal up by 0.33%, CNX PSU Bank up by 0.32% and CNX Pharma up by 0.03% remained the gainers in the trade. While CNX Auto down by 0.99%, CNX IT down by 0.87%, CNX Energy down by 0.85%, CNX Media down by 0.57% and CNX Finance down by 0.41% were remained the loser in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 2.62% and reached 22.1075. The 50-share CNX Nifty decreased by 41.75 points or 0.62% to settle at 6,694.35.

Nifty April 2014 futures closed at 6,744.20 on Friday at a premium of 49.85 points over spot closing of 6,694.35, while Nifty May 2014 futures ended at 6,785.20 at a premium of 90.85 points over spot closing. Nifty April futures saw contraction of 0.79 million (mn) units, taking the total outstanding open interest (OI) to 16.34 mn units. The near month April 2014 derivatives contract will expire on April 24, 2014.

From the most active contracts, IDFC April 2014 futures were at a premium of 1.15 points at 126.00 compared with spot closing of 124.85. The number of contracts traded was 11,952.

DLF April 2014 futures were at a premium of 1.90 points at 177.40 compared with spot closing of 175.50. The number of contracts traded was 19,856.

Ranbaxy Laboratories April 2014 futures traded at a premium of 1.55 points at 463.10 compared with spot closing of 461.55. The number of contracts traded was 26,295.

Tata Steel April 2014 futures traded at a premium of 2.95 points at 404.90 compared with spot closing of 401.95. The number of contracts traded was 13,480.

Yes Bank April 2014 futures traded at a premium of 1.90 points at 425.15 compared with spot closing of 423.25. The number of contracts traded was 13,543. 

Among Nifty calls, 6,900 SP from the April month expiry was the most active call with an addition of 0.51 million open interest.

Among Nifty puts, 6,400 SP from the April month expiry was the most active put with  contraction of 0.25 million open interest.

The maximum OI outstanding for Calls was at 6,900 SP (4.90 mn) and that for Puts was at 6,400 SP (5.52 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6729.08-- Pivot Point 6707.12 - Support -- 6672.38.

The Nifty Put Call Ratio (PCR), finally stood at 1.30 for April month contract. The top five scrips with highest PCR on OI were HDFC 1.47, Centurytex 1.38, ONGC 1.09, IOC 1.06, and Hero Motoco 1.05.

Among most active underlying, State Bank of India witnessed with contraction  of 0.01 million of Open Interest in the April month futures contract, followed by United Spirits  witnessing  an addition  of 0.02 million of Open Interest in the April month contract; HDFC Bank witnessed an addition of 1.16 million of Open Interest in the April month futures. Reliance Industries witnessed an addition of 0.29 million of Open Interest in the April month contract and TCS witnessed an addition of 0.21 million of Open Interest in the expiring April month's future contract