Nifty ends below 7,300 mark on weak global cues

The fifty stock index -- Nifty -- ended lower on the Tuesday on the back of selling in the front line blue chip counters, as investors’ sentiments were weighed down after Japanese equities posted its biggest daily drop in nearly three years amid strengthening yen. Further, sentiments were also under pressure on report that India's economy grew by 7.3 percent in the third quarter ended December 2015, compared to 7.7 percent growth in the second quarter. Besides, deprecating rupee against the dollar also Weighed down the sentiment. Additionally, investors overlooked the Central Statistics Office (CSO) statement that Indian economy will grow at a 5-year high of 7.6 percent in the fiscal ending March, overtaking a slowing China, on the back of improvement in manufacturing and farm sectors. On the global front, Asian markets ended in red, while European markets were trading mostly in green with Germany’s DAX was up by 0.11%, UK’s FTSE 100 was up by 0.23%, while France’s CAC was down by 0.24%.

Back home, after getting gap-down opening, Nifty traded in tight band for most part of the day’s trade as sentiment remained weak in the absence of any positive trigger. Thereafter, market managed to pare some of their initial losses in last leg of trade but it was not enough to take market into green. Finally Nifty ended with loss of over one percent.

The top gainers from the F&O segment were Lupin, NMDC and Sun Pharmaceuticals Industries. On the other hand, the top losers were Motherson Sumi Systems, Just Dial and Strides Shasun. In the index options segment, maximum OI was being seen in the 7300-8100 calls and 6800-7500 puts. In today's session, while the traders preferred to exit 7400 put, heavy buildup was seen in the 7100 put. On the other hand, traders exited from 7800 Call, while 7400 call witnessed considerable OI addition.  

The India Volatility Index (VIX), a gauge for market's short term expectation of volatility increased by 7.26% and reached 21.72. The 50-share Nifty was down by 89.05 points or 1.21% to settle at 7,298.20.   

Nifty February 2016 futures closed 7325.05 on Tuesday at a premium of 26.85 points over spot closing of 7,298.20, while Nifty March 2016 futures ended at 7344.45 at a premium of 46.25 points over spot closing. Nifty February futures saw contraction of 0.74 million (mn) units, taking the total outstanding open interest (OI) to 18.55 million (mn) units. The near month derivatives contract will expire on February 25, 2016.                

From the most active contracts, SBI February 2016 futures traded at a premium of 0.15 points at 167.45 compared with spot closing of 167.30. The number of contracts traded were 23,472.         

ICICI Bank February 2016 futures traded at a disocunt of 0.15 points at 209.25 compared with spot closing of 209.40. The number of contracts traded were 20,816.                      

Axis Bank February 2016 futures traded at a premium of 2.55 points at 401.40 compared with spot closing of 398.85. The number of contracts traded were 15,245.                          

Punjab National Bank February 2016 futures traded at a premium of 2.25 points at 86.85 compared with spot closing of 88.00. The number of contracts traded were 25,949.                                        

Tata Motors February 2016 futures traded at a premium of 1.20 points at 312.25 compared with spot closing of 311.05. The number of contracts traded were 13,542.  

Among Nifty calls, 7500 SP from the January month expiry was the most active call with a contraction of 0.09 million open interests. Among Nifty puts, 7200 SP from the January month expiry was the most active put with an addition of 0.48 million open interests. The maximum OI outstanding for Calls was at 7600 SP (6.11 mn) and that for Puts was at 7200 SP (4.83 mn).  The respective Support and Resistance levels of Nifty are: Resistance 7322.72 --- Pivot Point 7298.93 --- Support --- 7274.42.        

The Nifty Put Call Ratio (PCR) finally stood at 0.94 for January month contract. The top five scrips with highest PCR on OI were Indian Overseas Bank (1.82), Godrej Consumer Products (1.67), Lupin (1.47), Hero MotoCorp (1.39) and Eicher Motors (1.35).

Among most active underlying, Punjab National Bank witnessed an addition of 6.21 million of Open Interest in the January month futures contract, followed by Reliance Industries witnessing a contraction of 0.15 million of Open Interest in the January month contract; Dr. Reddy's Laboratories witnessed an addition of 0.05 million of Open Interest in the January month contract, State Bank of India witnessed a contraction of 0.20 million of Open Interest in the January month contract and Yes Bank witnessed an addition of 0.10 million units of Open Interest in the January month's future contract.