The domestic index S&P CNX Nifty ended the choppy day of trade in the red with a cut of about 20 points on Tuesday, on the back of subdued global cues and political worries on domestic front. Moreover, the index traded in the tight range throughout the day’s and snapped the day’s trade below its crucial 5,650 mark. Earlier, the market made a positive start but, slipped into the red in early trade on subdued global cues and weakness in realty space on the domestic front. Afterwards, market, trimmed some of its losses on the back of strong FII inflows. Foreign funds have bought shares worth Rs 7,585.4 crore in the last six sessions of June, as risk appetite got a boost from some relief over Greece’s debt situation. In the mid morning trade, benchmark resumed its southbound journey and touched its intraday low as sustained selling witnessed in some of the front line stocks. Moreover, Political worries weighed on the market after nine ruling Congress party MPs from Andhra Pradesh resigned last night, to press their demands for a separate state of Telangana. In the mid afternoon trade, market seen some sign of recovery, led by PSU oil marketing companies on report that India, Iran may resolve oil payments crisis soon and stocks like BPCL, HPCL and IOC snapped the day’s trade with a gain in the range of 0.50-2.50 percent. In the last half an hour of trade, Nifty lost some 15-20 points and finally snapped the sluggish day of trade with a cut of over 0.30 percent.
On the global front, The US markets were unable to give any cue to the other global markets as it were closed overnight, while Asian equity indices finished the day’s trade on a mixed note as investors remained on the safer side ahead of US nonfarm payrolls data due later in the week. Moreover, European counterparts were trading mixed at this point of time. Back home, on the sectoral front on NSE, CNX Realty remained the major loser, down 1.12% followed by CNX infra down by 0.80 while, Bank Nifty and CNX IT rose 0.23% and 0.34% respectively. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, added 0.44% and reached 18.25, while S&P Nifty closed at 5,632.10 losing 18.40 points or 0.33%.
The India VIX witnessed an addition of 0.44% at 18.25 on Tuesday as compared to its previous close of 18.17 on Monday.
The 50-share S&P CNX Nifty lost 18.40 points or 0.33% and settled at 5,632.10.
Nifty July 2011 futures closed at 5,650.00, at a premium of 17.90 point over spot closing of 5,632.10, while Nifty August 2011 futures were at 5,666.40 at a premium of 34.30 points over spot closing. The near month July 2011 derivatives contract expires on Thursday, 28 July, 2011. Nifty July futures saw an addition of 2.84% or 0.61 million (mn) units, taking the total outstanding open interest (OI) to 22.44 mn units.
From the most active underlying, SBI's July 2011 futures closed at a premium of 7.10 points at 2480.00 compared with spot closing of 2472.90. The number of contracts traded was 31,555.
RIL July 2011 futures were at a premium of 5.75 point at 851.15 compared with spot closing of 845.40. The number of contracts traded was 26,357.
Tata Steel July 2011 futures were at a premium of 2.35 points at 599.15 compared with spot closing of 596.80. The number of contracts traded was 11,368.
ICICI Bank July 2011 futures were at a premium of 6.50 at 1104.50 compared with spot closing of 1098.00. The number of contracts traded was 12,164.
BHEL July 2011 futures were at a premium of 12.50 at 1956.90 compared with spot closing of 1944.40. The number of contracts traded was 11,768. Among Nifty calls, 5700 SP from the July month expiry was the most active call with addition of 0.60 million or 12.46%.
Among Nifty puts, 5600 SP from the July month expiry was the most active put with addition of 0.28 million or 6.72%.
The maximum Call OI outstanding for Calls was at 5700 SP (5.37mn) and that for Puts was at 5600 SP (4.49 mn).
The respective Support and Resistance levels are: Resistance 5657.2 -- Pivot Point 5634.75 -- Support 5609.65.
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 Sun Pharma 3.67, Shriram Transport Finance 3.00, Jain Irrigation Systems 2.50, Siemens 1.56 and Sun TV 1.36.
Among most active underlying, SBI witnessed an addition of 8.03% of Open Interest (OI) in the July month futures contract followed by Reliance that witnessed an addition of 10.69% of Open Interest (OI) in the near month contract. Finally the Tata Steel witnessed an addition of 1.37% of OI in the July month futures.
