Nifty ends below 7,550 mark on weak global cues

After ending higher in previous session of trade, the domestic index Nifty drifted southward on Friday and ended the day’s trade with a cut of around one and a half percent. Though, the market traded in the positive terrain during first half but, slipped in red in the second half on the back of selling witnessed in Realty, Power and Consumer Durables sector stocks. Rising crude oil prices in the global markets on concerns that unrest in Iraq could lead to disruptions in the country's oil supplies combined with depreciating rupee were reasons behind the falloff Nifty.  However, sentiments got some support as the factory output growth rebounded to a 13-month high of 3.4 per cent in April and retail inflation eased to 8.23 per cent in May on account of falling prices of essential food items. Meanwhile, shares of oil marketing companies like BPCL, HPCL and IOC tanked 5-8 percent as brent crude surged to nine-month high around $115 a barrel amid concerns that escalating violence in Iraq may disrupt oil supplies . Moreover, the Auto stocks plunged during the late noon trades on the account of heavy profit booking with Tata Motors, Baja Auto and Maruti Suzuki all declining between 3-7%.

Looking at the index option data for June series maximum call OI is seen at 7800, followed by 8000 strike prices whereas maximum put OI is at 7500 & 7300 strike prices suggesting broader range is likely in between 7300-8000 levels. In today's session, the 7600, 7700 and 7800 Call strikes saw addition of 1.23, 1.17 and 0.85 lakh shares, respectively. On the other hand, some traders exited from 7700, 7600 and 7500 puts on the back of profit booking. Meanwhile, India VIX - the gauge of underlying volatility in the market - has risen in today's session as traders turned cautious after the benchmark breached psychological level of 7550. The top gainers from the F&O Securities were Colgate Palmolive, HCL Technologies and Hindustan Unilever. The top losers were Hindustan Petroleum Corporation, Jaiprakash Associates and DLF.

Most of the sectoral indices on the NSE were settled in the red, CNX Realty declined by 5.28%, CNX PSU Bank down by 3.84%, CNX Metal down by 3.23%, Bank Nifty down by 2.31%, CNX Media down by 2.14% CNX Energy down by 2.04%, CNX Finance down 1.97%, CNX Auto down by 1.75%, CNX FMCG down by 0.53% and CNX Pharma down by 0.20% remained the top loser in the trade, while CNX IT up by 0.01% was remained the gainers in the trade.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 5.09% and reached 17.76.

The 50-share CNX Nifty decreased by 107.80 points or 1.41% to settle at 7,542.10. Nifty June 2014 futures closed at 7560.00 on Friday at a premium of 17.90 points over spot closing of 7,542.10, while Nifty July 2014 futures ended at 7595.30 at a premium of 53.20 points over spot closing. Nifty June futures saw contraction of 1.55 million (mn) units, taking the total outstanding open interest (OI) to 15.13 mn units. The near month June 2014 derivatives contract will expire on June 26, 2014.

From the most active contracts, HDFC Bank June 2014 futures were at a premium of 2.00 points at 840.00 compared with spot closing of 838.00. The number of contracts traded were 25,786.

DLF June 2014 futures traded at a premium of 1.05 points at 206.05 compared with spot closing of 205.00. The number of contracts traded were 20,081.

Reliance Industries June 2014 futures were at a premium of 2.90 points at 1082.90 compared with spot closing of 1080.00. The number of contracts traded were 28,909.

Tata Steel June 2014 futures were at a premium of 2.90 points at 527.10 compared with spot closing of 524.20. The number of contracts traded were 16,880.

ICICI Bank June 2014 futures traded at a premium of 11.30 points at 1435.30 compared with spot closing of 1424.00. The number of contracts traded were 33,948. Among Nifty calls, 7,700 SP from the June month expiry was the most active call with contraction of 1.02 million open interest. Among Nifty puts, 7,500 SP from the  June month expiry was the most active put with an addition of 0.21 million open interest. The maximum OI outstanding for Calls was at 7800 SP (5.96 mn) and that for Puts was at 7,500 SP (5.24 mn).  The respective Support and Resistance levels of Nifty are: Resistance 7638.62 --- Pivot Point 7581.98 --- Support --- 7485.47.

The Nifty Put Call Ratio (PCR) finally stood at 0.96 for June month contract. The top five scrips with highest PCR on OI were Mcleod Russel India (1.45), Aurobindo Pharma (1.12), Maruti Suzuki (0.92), TCS (0.83) and Siemens (0.83).

Among most active underlying, State Bank of India witnessed contraction of 0.15 million of Open Interest in the June month futures contract, followed by Infosys witnessing contraction of 0.27 million of Open Interest in the June  month contract; while Tata Steel witnessed contraction of 0.02 million of Open Interest in the June month futures contract, Jaiprakash Associates witnessed contraction 1.78 million of Open Interest in the June month contract and ICICI Bank witnessed an addition of 1.16 million  of Open Interest in the June month's future contract.