Tsunami fears drag Nifty lower in late trade

The fifty stock index -- Nifty -- ended the volatile session with a mild cut of about 0.30 percent after earthquake of 8.6 Richter scale hit Aceh, Indonesia and tsunami warning being issued in 28 countries. Tremors felt in Kolkata, Chennai, Kochi, Bangalore, and Patna. Coastal regions of Tamil Nadu, Andhra Pradesh and Andaman islands were also put on alert following Sumatra quake. Globally, the US markets had their worst day of the year overnight while, most of the Asian equity indices ended the day’s trade in the negative terrain on Wednesday as investors continued to cut back their risk exposure given uncertainty over global growth. However, European counters made a decent start, pausing after the previous day’s heavy losses that were sparked by fresh worries over the euro-zone debt crisis.

Earlier, the domestic market made a gap-down start breaching its crucial 5,200 mark on the back of fresh selling by funds amid weak global cues. Afterwards, market traded in the tight band as 5,200 mark proved to be a great support level for Nifty. In the early noon trade, market started paring its losses following firm trade in European counters. Meanwhile, shares of aviation companies too supported the sentiments as stock like Jet Airways (India), Kingfisher Airlines and SpiceJet rallied more than 5 percent each in a hope that the government will allow foreign airlines to pick up stake in the domestic carriers. Benchmarks continued its recovery path in mid noon trade and regained its green land recapturing 5,250 mark as renewed buying interest was visible in the banking stocks on hopes that Reserve Bank of India might cut the key rates by 25 bps in the upcoming monetary policy review. In the late trade, the index after touching its intraday high nosedived into the red as Tsunami warning to 28 countries sent anxiety across the market. Meanwhile, shares of power companies such as Tata Power and Adani Power declined after a massive earthquake of magnitude 8.6 on Richter scale in Indonesia’s Aceh province raised concerns of disruption in coal supply. Finally, market ended the day’s trade with a mild cut of about 15 points.

Meanwhile, on the NSE CNX Pharma remained the major gainer, up 0.66% followed by CNX IT up 0.27% and Bank Nifty up by 0.18% while CNX Metal and CNX Media declined 1.38% and 1.20% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, rose 1.68% and reached 22.29.

The India VIX witnessed an addition of 1.68% at 22.29 as compared to its previous close of at 21.92 on Tuesday.

The 50-share S&P CNX Nifty lost 16.75 points or 0.32% to settle at 5,226.85.

Nifty April 2012 futures closed at 5,251.35 at a premium of 24.50 points over spot closing of 5,226.85, while Nifty May 2012 futures were at 5,283.35 at a premium of 56.50 points over spot closing. The near month April 2012 derivatives contract will expire on Thursday i.e. April 26, 2012. Nifty April futures saw contraction of 0.01 million (mn) units taking the total outstanding open interest (OI) to 17.05 mn units.

From the most active contract, JP Associates April 2012 futures were at a premium of 0.35 point at 79.55 compared with spot closing of 79.20. The number of contracts traded was 9,254.

Tata Motors April 2012 futures were at a discount of 1.00 point at 282.75 compared with spot closing of 283.75. The number of contracts traded was 10,582.

HDIL April 2012 futures were at a premium of 0.30 points at 87.55 compared with spot closing of 87.25. The number of contracts traded was 11,748.

Tata Steel April 2012 futures were at a premium of 1.65 point at 448.50 compared with spot closing of 446.85. The number of contracts traded was 15,466.

Reliance Industries April 2012 futures were at a premium of 3.70 point at 735.70 compared with spot closing of 732.00. The number of contracts traded was 14,318. 

Among Nifty calls, 5400 SP from the April month expiry was the most active call with an addition of 0.50 million open interest.

Among Nifty puts, 5000 SP from the April month expiry was the most active put with an addition of 0.45 million open interest.

The maximum OI outstanding for Calls was at 5400 SP (5.28mn) and that for Puts was at 5000 SP (5.86mn).

The respective Support and Resistance levels are: Resistance 5263.4-- Pivot Point 5227.1 -- Support 5190.55

The Nifty Put Call Ratio (PCR) OI wise stood at 1.21 for April -month contract.

The top five scrips with highest PCR on OI were ABG Ship 3.71, Hindustan Zinc 2.25, Siemens 2.20, Adani Ports 2.00, and Patni 1.70.

Among most active underlying, Suzlon witnessed an addition of 2.76 million of Open Interest in the April month futures contract followed by IFCI which witnessed contraction of 0.16 million of Open Interest in the near month contract. Meanwhile, IVRCL Infra witnessed an addition of 10.28 million in the April month futures. Also, JP Associates Infra witnessed an addition of 2.11 million in Open Interest in the April month contract. Finally, witnessed RCOM witnessed an addition of 0.88 million of Open Interest in the near month futures contract.