Nifty extend its fall on the last trading day; ends lower by over 2% for the week

The benchmark index of NSE, S&P CNX Nifty extended its fall on the last trading day of the week with the somber run of the Indian markets continuing for yet another day as slight bit of recovery hope after a sharp fall in previous session faded amid persisting weak global cues. There was no positive trigger for the market that could have supported it from further fall and the market participants took every rise as an opportunity to book profit, once taking the benchmark close to the 5350 support level. It was again across the board selling and all the sectoral gauges were caught in it, though some short covering in banking stocks in the last hour of trade helped the sector to close in green. Earlier the start of the market was in green and it seemed that after steep fall in last session the market might recover as the US markets managed a mixed closing on some better than expected economy news, however the Asian markets continued their declining trend. But it was the decline in the market heavy weights Reliance and ONGC that weighed on the markets today. The IT pack was the other major loser taking the index lower.

On the global front most of the Asian markets closed in red on Greece debt worries and it turning contagion, with Hong Kong market suffering the most declining to their more than 9 months low, however KLSE Composite managed to eke out some gain by the end of the trade. Chinese market declined on the fear of another rate hike while the Japanese market hit its three month low on risk aversion. The European markets ahead of the euro zone leaders meet made a soft start indicating for a seventh successive weekly fall for major markets, which at this point of time were trading mixed, with CAC 40 gaining 0.44%, while DAX 30 lower by marginal 0.02% and FTSE 100 down by 0.33%. On the NSE sectoral front, CNX Infra was up by 0.56%, Bank Nifty was up by 0.25% on the other hand CNX IT lost 1.91% and CNX Realty was down by 0.20%. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility gained 3.10% to 20.27.

The India VIX witnessed a gain of 3.10% at 20.27 on Friday as compared to its previous close of 19.66 on Thursday.

The 50-share S&P CNX Nifty shed 30.35 points or 0.56% and settled at 5,366.40.

Nifty June 2011 futures closed at 5,372.70, at a premium of 6.30 points over spot closing of 5,366.40, while Nifty July 2011 futures were at 5,388.60 at a premium of 22.20 points over spot closing. The near month June 2011 derivatives contract expires on Thursday, June 30, 2011. Nifty June futures saw addition of 7.38% or 1.77 million (mn) units, taking the total outstanding open interest (OI) to 25.89 mn units.

From the most active underlying, Tata Steel June 2011 futures closed at a premium of 1.30 points at 572.55 compared with spot closing of 571.25. The number of contracts traded was 21,007.

SBI's June 2011 futures were at a premium of 11.50 point at 2219.50 compared with spot closing of 2208.00. The number of contracts traded was 18,951.

RIL June 2011 futures were at a premium of 5.30 points at 872.20 compared with spot closing of 866.90. The number of contracts traded was 23,126.

Titan June 2011 futures were at a discount of 2.55 at 4549.00 compared with spot closing of 4551.55. The number of contracts traded was 8,549.

Infosys June 2011 futures were at a discount of 0.50 at 2771.50 compared with spot closing of 2772.00. The number of contracts traded was 11,969.Among Nifty calls, 5400 SP from the June month expiry was the most active call with addition of 0.67 million or 15.51%.

Among Nifty puts, 5400 SP from the June month expiry was the most active put with contraction of 0.44 million or 5.56%.

The maximum Call OI outstanding for Calls was at 5400 SP (4.99 mn) and that for Puts was at 5400 SP (7.5 mn).

The respective Support and Resistance levels are: Resistance 5406.41-- Pivot Point 5381.13-- Support 5341.11.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.04 for June -month contract.

The top five scrips with highest PCR on OI were Bharat Forge 3.00, BEML- 3.00, Sintex 3.00, Sun TV 1.55 and Sun Pharmaceuticals Industries -1.35.

Among most active underlying, Reliance Industries witnessed an addition of 8.58% contract followed by Tata Steel which too added 3.25% of Open Interest (OI) in the near month contract. Meanwhile SBI witnessed an addition of 0.82% of OI in the June month futures. Finally Infosys Technologies too added 9.74% of Open Interest (OI) in the June month futures.