Nifty snaps eight day’s winning streak on profit booking

Nifty snapped its eight day’s winning streak and ended the choppy day of trade in the red with a cut of over 20 points on Friday, on the back of profit booking and weak economic data. Though, the global cues continued to remain supportive after Greece cleared the final hurdle needed to receive its next installment of emergency loans. Earlier, the Indian equity market made a gap up start and crossed its crucial 5,700 mark tracking positive cues from global indices while, increased buying by funds and retail investors following easing concerns over the European debt crisis and fall in food inflation on domestic front too aided the sentiments. Afterwards, market started moving southward after India’s manufacturing grew at the slowest pace in nine months after the central bank raised interest rates by the most in a decade to tame prices. The Purchasing Managers Index (PMI) fell to 55.3 in June from 57.5 in May. A number above 50 indicates expansion. Week opening in European markets too dampened the sentiments. Moreover, index heavyweight Reliance Industries ending the trade with a cut of about four percent in the trade too dragged down the market further after the Central Bureau of Investigation searched the house of a former upstream regulator after the CAG said in a report there may have been inflated costs for some of Reliance Industries exploration activities. Meanwhile, Bharti Airtel declined over 2% after a leading Brokerage firm on Friday downgraded the stock to ‘underperform’ from ‘outperform’ saying it did not see any upside to its near-term earnings estimates. Finally, Nifty snapped the sluggish day of trade with a cut of over 0.30 percent.

On the global front, the US markets closed higher for the fourth straight day on Thursday, all the major indices were up by over a percent after Greece cleared passed the austerity bill while, most of the Asian equity indices finished the day’s trade in the positive terrain on last trading day of the week. Moreover, European counterparts were trading in the positive terrain at this point of time after a weak start. Back home, on the sectoral front on NSE, CNX Realty remained the major gainer, up 2.82% followed by CNX IT up 0.76% and Bank Nifty up by 0.09% while, CNX Infra lost 0.24% in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 1.08% and reached 18.21, while S&P Nifty closed at 5,627.20 losing 20.20 points or 0.36%.

The India VIX witnessed a drop of 1.08% at 18.21 on Friday as compared to its previous close of 18.41 on Thursday.  

The 50-share S&P CNX Nifty lost 20.20 points or 0.36% and settled at 5,627.20.

Nifty July 2011 futures closed at 5,632.85, at a premium of 5.65 point over spot closing of 5,627.20, while Nifty July 2011 futures were at 5,650.00 at a premium of 22.80 points over spot closing. The near month July 2011 derivatives contract expires on Thursday, 28 July, 2011. Nifty July futures saw an addition of 4.94% or 1.02 million (mn) units, taking the total outstanding open interest (OI) to 21.80 mn units.

From the most active underlying, SBI’s July 2011 futures closed at a premium of 1.00 points at 2428.00 compared with spot closing of 2427.00. The number of contracts traded was 23,921.

RIL July 2011 futures were at a premium of 6.45 point at 866.35 compared with spot closing of 859.90. The number of contracts traded was 30,988.

DLF July 2011 futures were at a premium of 0.55 points at 221.50 compared with spot closing of 220.95. The number of contracts traded was 23,942.

Cairn July 2011 futures were at a premium of 0.50 at 326.30 compared with spot closing of 325.80. The number of contracts traded was 13,892.

ICICI Bank July 2011 futures were at a premium of 7.10 at 1102.85 compared with spot closing of 1095.75. The number of contracts traded was 13,314.

Among Nifty calls, 5700 SP from the July month expiry was the most active call with addition of 1.21 million or 38.75%.

Among Nifty puts, 5600 SP from the July month expiry was the most active put with addition of 0.36 million or 13.69%.

The maximum Call OI outstanding for Calls was at 5700 SP (4.36 mn) and that for Puts was at 5600 SP (3.05 mn).

The respective Support and Resistance levels are: Resistance 5685.41 -- Pivot Point 5647.58 -- Support 5589.36.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.28 for July -month contract.

The top five scrips with highest PCR on OI were Shriram Transport Finance 3.00, Sun Pharma 2.68, Grasim 2.50, Siemens 1.73 and Sun TV 1.38.

Among most active underlying, RIL witnessed an addition of 14.55% of Open Interest (OI) in the July month futures contract followed by SBI witnessed an addition of 5.01% of Open Interest (OI) in the near month contract. Meanwhile, DLF witnessed an addition of 4.64% of OI in the July month futures while IFCI witnessed an addition of 3.27% of OI in the July month futures.