Nifty ends marginally lower; TCS shines

Nifty ended the day’s trade with a marginal cut after languishing in the negative zone for the most part of the day. However, market witnessed volatility in early trade and traded in the tight range afterwards till end and snapped the day’s trade with a cut of about 20 point, moreover global cues remained weak as the US markets closed lower overnight after the hopes of further stimulus faded with the remarks of Federal chief Ben Bernanke that the central bank will help when required only. Earlier, the Indian equity market opened on a firm note tracking strong cues from Asian counterparts but, after the half an hour of trade a sudden downfall was witnessed in the index and it came down in the red terrain breaching its crucial 5,600 mark as most of the Asian equities pared their initial gains. Moreover, a good first quarter result from the IT bellwether TCS supported the spike up in the early trade while, the PSU oil marketing companies and Aviation stocks helped the initial up-move as the scrips like BPCL HPCL, IOC, Jet Airways, Spice Jet and Kingfisher Airlines all remained higher in the early trade as international crude prices fell by more than 2 percent on Thursday on fading hopes of Fed’s bond buying programme extension. After touching its intraday low in the late morning trade near its crucial 5,550 mark, benchmark got some support at that level and pared its losses of about 20-25 points. Afterwards market traded in the tight band till the end. Weak opening in European counterparts ahead of the release of the country’ bank stress tests results too dampened the sentiments. Moreover, the investors’ mood remained somber on report that the key monsoon rains were 19% below normal a week ago, though improving from a quarter below average rains in the previous week. Finally, Nifty ended the sluggish day of trade with a cut of over 0.30 percentage point.

On the global front, the US markets once again closed in red after the Fed chief clarified that the central bank will go for more stimulus only when the recovery shows sign of faltering, while Asian equity indices finished the day’s trade on mixed note on the last trading day of the week as investors remained cautious following a weak lead from Wall Street. Moreover, the European counterparts were trading mostly in the red where major indices like CAC and DAX suffered cut of about half a percent at this point of time. Back home, most of the sectoral indices on the NSE settled in the negative territory with CNX Realty losing the most, ending with a cut of over half a percent followed by Bank Nifty down by 0.26%, CNX Infra down by 0.16% and CNX IT down by 0.32 in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, dipped 0.10% and reached 19.95, while S&P Nifty dropped by 18.70 points or 0.33% to close at 5,581.10.

The India VIX witnessed a decline of 0.10% at 19.95 on Friday as compared to its previous close of 19.97 on Thursday.  

The 50-share S&P CNX Nifty lost 18.70 points or 0.33% and settled at 5,581.10.

Nifty July 2011 futures closed at 5,591.25, at a premium of 10.15 point over spot closing of 5,581.10, while Nifty August 2011 futures were at 5,607.00 at a premium of 25.90 points over spot closing. The near month July 2011 derivatives contract expires on Thursday, 28 July, 2011. Nifty July futures saw an addition of 4.54% or 0.98 million (mn) units, taking the total outstanding open interest (OI) to 22.55 mn units.

From the most active underlying, TCS July 2011 futures closed at a premium of 1.45 points at 1148.05 compared with spot closing of 1146.60. The number of contracts traded was 24,744.

SBI’s July 2011 futures were at a premium of 3.00 point at 2475.00 compared with spot closing of 2472.00. The number of contracts traded was 19,153.

Tata Motors July 2011 futures were at a discount of 16.85 at 1018.00 compared with spot closing of 1034.85. The number of contracts traded was 13,788.

RIL July 2011 futures were at a premium of 0.90 at 873.40 compared with spot closing of 872.50. The number of contracts traded was 15,252.

Infosys July 2011 futures were at a premium of 8.60 at 2740.10 compared with spot closing of 2731.50. The number of contracts traded was 9,260.

Among Nifty calls, 5600 SP from the July month expiry was the most active call with addition of 1.52 million or 23.15%.

 Among Nifty puts, 5600 SP from the July month expiry was the most active put with addition of 0.72 million or 11.89%.

The maximum Call OI outstanding for Calls was at 5600 SP (8.08 mn) and that for Puts was at 5500 SP (6.78 mn).

The respective Support and Resistance levels are: Resistance 5620.95-- Pivot Point 5591.85-- Support 5552.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.12 for July -month contract.

The top five scrips with highest PCR on OI were Sun Pharma 3.88, PNB 2.05, MRF 2.00, Voltas 2.00 and Sun TV 1.31.

Among most active underlying, TCS witnessed an addition of 4.80% of Open Interest (OI) in the July month futures contract followed by SBI witnessed an addition of 4.77% of Open Interest (OI) in the near month contract. Meanwhile Reliance witnessed deduction of 1.35% of OI in the July month futures. Lastly, Tata Motors witnessed an addition of 6.76% of Open Interest (OI) in the July month futures.