Nifty witnesses consolidation ahead of EU summit

After witnessing two days of downfall, CNX S&P Nifty consolidated on Tuesday tracking lackluster global cues amid a range bound trading session. Globally every market is waiting for the European Union summit that is scheduled for June 28-29 in Brussels. Asian stocks fell with Nikkei the most as the global rating agency Moody’s downgraded 28 Spanish banks on concerns of country’s sovereign debt and rising bad loans while, the European markets were also trading on a flat note with investors’ uncertain that nothing substantive will emerge from this week's European leaders’ summit to resolve the region’s debt crisis. Back home, market digested lower than expected measures announced by RBI yesterday to curb rupee’s slide and weak global cues. However, the investors still hoping that the government may announce more measures going ahead to give a boost to sluggish economic growth. 

Earlier, the Indian market made a flat opening as investors remained sideways ahead of June month expiry on June 28, 2012. Moreover, subdued global cues also dampened the mood of the traders. Afterwards, market traded near its equator for whole day and the psychological 5,100 level proves to be the strong support level as the key index despite repeated attempts refused to go substantially below that levels. Meanwhile, Cement stocks like Ambuja Cements, Ultratech Cements and ACC have bounced back after the adverse order by CCI moreover, power stocks led by Reliance Power, Tata Power, NTPC gained ground on Tuesday on the back of strong 5.2 percent monthly jump in overall power generation in India in May 2012 over the same month last year. In the final hour of trade, however, market turned red and breached its crucial 5,100 mark but, pull back in rupee helped the market to regain its green territory. The Indian rupee traded at 56.98 to the US dollar gaining 3 paise over Monday’s close. Finally, Nifty ended the day’s trade with marginal gains of 6 points.

Meanwhile, most of the sectoral indices on the NSE were settled in the green, CNX Media remained the major loser, up 1.74% followed by CNX Pharma up 0.91% and CNX PSU Bank up by 0.46% while CNX FMCG and CNX Metal declined 0.81% and 0.33% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 6.21% and reached 20.23.

The India VIX witnessed contraction of 6.21% at 20.23 as compared to its previous close of at 21.57 on Monday.

The 50-share S&P CNX Nifty gained 6.15 points or 0.12% to settle at 5,120.80.

Nifty June 2012 futures closed at 5,125.70 at a premium of 4.90 points over spot closing of 5,120.80, while Nifty July 2012 futures were at 5147.15 at a premium of 26.35 points over spot closing. The near month June 2012 derivatives contract will expire on Thursday i.e. June 28, 2012. Nifty June futures saw an addition of 2.00 million (mn) units taking the total outstanding open interest (OI) to 15.23 mn units.

From the most active contract, HDIL June 2012 futures were at a discount of 0.20 point at 83.80 compared with spot closing of 84.00. The number of contracts traded was 13,720.

Tata Motors June 2012 futures were at a premium of 0.25 point at 246.95 compared with spot closing of 246.70. The number of contracts traded was 12,123.

Tata Steel July 2012 futures were at a discount of 15.00 point at 396.35 compared with spot closing of 411.35. The number of contracts traded was 12,604.

Tata Steel June 2012 futures were closed flat at 411.35 compared with spot closing of 411.35. The number of contracts traded was 18,555.

ICICI Bank June 2012 futures were at a discount of 0.15 point at 845.85 compared with spot closing of 846.00. The number of contracts traded was 17,778.   

Among Nifty calls, 5200 SP from the Jun month expiry was the most active call with an addition of 0.10 million open interest.

Among Nifty puts, 4800 SP from the Jun month expiry was the most active put with  an addition  of 0.13 million open interest.

The maximum OI outstanding for Calls was at 5200 SP (8.34mn) and that for Puts was at 4800 SP (9.12mn).

The respective Support and Resistance levels are: Resistance 5138.4-- Pivot Point 5116.95--Support 5099.35.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.86 for June-month contract.

The top five scrips with highest PCR on OI were Welcorp 13.00, ABG Ship 5.00, Orient Bank 5.00, TATA Chemical 3.00 and ABB 2.50

Among the most active underlying, Suzlon witnessed contraction of 31.29 million of Open Interest in the June month futures contract followed by IFCI which witnessed contraction of 8.53 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed contraction of 9.16 million in the June month futures. Also, Jaiprakash Associates witnessed contraction of 3.06 million in Open Interest in the June month contract. Finally, Tata Motors witnessed contraction of 2.61 million of Open Interest in the near month futures contract.