Nifty ends the volatile session marginally in red

Nifty ended a very volatile session on a marginally negative note, unable to protect its psychologically crucial bastion of 8150 reached in intraday trade. The benchmark made a soft start as funds and retail investors engaged in reducing positions amid a weak trend in global markets ahead of the US job data due later today. Besides adding to investor concerns, Greece delayed a debt payment to the International Monetary Fund (IMF) due June 5, 2015, and German Chancellor Angela Merkel said talks on a cash-for-reforms deal were still far from an agreement. Back home, sentiments remained down-beat on report that FDI in India declined by sharp 40 per cent year-on-year to $2.11 billion in March 2015, compared to $3.53 billion in March 2014. However, investors got some support with Finance Minister Arun Jaitley statement that drawing any conclusions on the basis of monsoon predictions on inflation or some kind of distress situation is far-fetched. Jaitley expressed confidence that foodgrain production will not be impacted significantly by the prediction of below-normal rainfall in north-western region as the area is well-irrigated while monsoon will be normal in all other parts of the country, adding that advance predictions are somewhat better than last year. Later the Agriculture Minister Radha Mohan Singh said that the central government will give subsidy on power, diesel and seeds in case of deficient monsoon.

The index lacked any supportive cues in the early morning that could support its upmove, but things started stablising towards the mid of the day and eventually, Nifty entered the green supported by realty, IT and consumer durable stocks, the gains took the index above the 8150 mark, but in the final hours sudden selling emerged into the market and dragged the index in the red, there were some futile attempts in the final moments but that could not help the Nifty to end in green, finally ending the session with cut of 0.20%. Traders were seen piling position in Metal, PSU and FMCG stocks while selling was witnessed in Realty, Banking and IT sectors stocks.

The top gainers from the F&O segment were Britannia Industries, Coal India and Power Finance Corporation. On the other hand, the top losers were Jaiprakash Associates, Unitech and Steel DLF. In the index options segment, maximum OI was being seen in the 8500-8400 calls and 8000-8100 puts. In today's session, while the traders preferred to exit 8100 put, heavy buildup was seen in the 7900 put. On the other hand, traders exited from 8700 Call, while 8500 call witnessed considerable OI addition.

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility decreased by 0.19% and reached 18.08. The 50-share CNX Nifty was down by 15.95 points or 0.20% to settle at 8,114.70. Nifty June 2015 futures closed at 8114.25 on Friday at a discount of 0.45 points over spot closing of 8,114.70, while Nifty July 2015 futures ended at 8150.20 at a premium of 35.50 points over spot closing. Nifty June futures saw an addition of 0.07 million (mn) units, taking the total outstanding open interest (OI) to 16.33 million (mn) units. The near month derivatives contract will expire on June 25, 2015.

From the most active contracts, State Bank of India June 2015 futures traded at a premium of 1.05 points at 258.45 compared with spot closing of 257.40. The number of contracts traded were 21,345.

ICICI Bank June 2015 futures traded at a premium of 0.90 points at 285.40 compared with spot closing of 284.50. The number of contracts traded were 28,715.

Tata Motors June 2015 futures traded at a premium of 2.15 points at 444.20 compared with spot closing of 442.05. The number of contracts traded were 21,512.

Reliance Industries June 2015 futures traded at a discount of 1.05 points at 909.35 compared with spot closing of 910.40. The number of contracts traded were 20,029.

Axis Bank June 2015 futures traded at a premium of 1.85 points at 548.45 compared with spot closing of 546.60. The number of contracts traded were 22,865.

Among Nifty calls, 8300 SP from the June month expiry was the most active call with an addition of 0.02 million open interests. Among Nifty puts, 8000 SP from the June month expiry was the most active put with an addition of 0.09 million open interests. The maximum OI outstanding for Calls was at 8500 SP (5.14 mn) and that for Puts was at 8,000 SP (4.99 mn).  The respective Support and Resistance levels of Nifty are: Resistance 8174.88--- Pivot Point 8115.82--- Support --- 8071.58.

The Nifty Put Call Ratio (PCR) finally stood at 0.91 for June month contract. The top five scrips with highest PCR on OI were Bosch (2), MindTree (1.75), REC (1.13), VEDL (1.09) and BHEL (1.04). 

Among most active underlying, ICICI Bank witnessed an addition of 3.57 million of Open Interest in the June month futures contract, followed by State Bank of India witnessing a contraction of 0.78 million of Open Interest in the June month contract; Coal India witnessed an addition of 0.82 million of Open Interest in the June month contract, Sun Pharmaceuticals Industries witnessed a contraction of 0.98 million of Open Interest in the June month contract and Tata Motors witnessed an addition of 0.42 million of Open Interest in the June month's future contract.