The fifty stock index -- Nifty -- once again entered into consolidation zone after hitting its 13 weeks high in previous session as investors shifted their focus to the Q1 corporate results. The result season will be kicked off with HDFC on July 11, 2012. Moreover, global cues remained subdued as traders fear that the latest policy easing by leading central banks would not be adequate to reinforce the fragile global economy. The European shares declined as doubts of further monetary stimulus ahead of a key US jobs report pushed investors to book more profits on five straight weeks of gains. In addition, most of the Asian equity indices ended the session in the negative terrain.
Back home, the local index kick started the trade on a flat note but immediately turned negative tracking weakness in the global markets. Moreover, depreciation in Indian rupee too dampened the investors’ sentiment. The index continued its journey in red for most part of the trade today. Further, the gauge fell expediently due to profit booking across sectors like realty, infra, metals and technology stocks and registered its intraday lows in the mid morning trade breaching its crucial 5,300 mark. Afterwards, market witnessed some recovery and recaptured its important 5,300 bastion after a major global investment bank downplayed the possibility of India’s sovereign rating downgrade to the junk status given the recent revival in sentiment. The market, however, continued to trade in the red as negative start by the European markets affected the sentiments further. However, gradually as banking and FMCG stocks revived buying interest; indices entered the green zone and registered its intraday high. Meanwhile, FMCG shares rose on the back of news that monsoons had finally arrived in the state. The southwest monsoon made a further advance yesterday into more parts of the country. Thereafter, as the rupee depreciated by 53 paise to 55.47 per dollar, the bourses fell below the equator. Finally, market snapped the day’s trade with a moderate cut of just 10 points.
Meanwhile, most of the sectoral indices on the NSE were settled in the red, CNX Realty remained the major loser, down 1.31% followed by CNX Metal down 1.06% and CNX Infra down 1.05% while CNX Media and Bank Nifty surged 0.66% and 0.13% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 1.68% and reached 18.04.
The India VIX witnessed contraction of 1.69% at 18.04 as compared to its previous close of at 18.35 on Thursday.
The 50-share S&P CNX Nifty lost 10.35 points or 0.19% to settle at 5,316.95.
Nifty July 2012 futures closed at 5,327.20 at a premium of 10.25 points over spot closing of 5,316.95, while Nifty August 2012 futures were at 5354.20 at a premium of 37.25 points over spot closing. The near month July 2012 derivatives contract will expire on Thursday i.e. July 26, 2012. Nifty July futures saw contraction of 0.35 million (mn) units taking the total outstanding open interest (OI) to 23.40 mn units.
From the most active contract, Reliance Communications July 2012 futures were at a premium of 0.40 point at 69.00 compared with spot closing of 68.60. The number of contracts traded was 7,404.
Tata Motors July 2012 futures were at a discount of 2.75 point at 237.85 compared with spot closing of 240.60. The number of contracts traded was 16,048.
HDIL July 2012 futures were at a premium of 0.35 point at 89.25 compared with spot closing of 88.90. The number of contracts traded was 8,606.
ICICI Bank July 2012 futures were at a discount of 6.85 points at 929.15 compared with spot closing of 936.00. The number of contracts traded was 26,031.
Tata Steel July 2012 futures were at a discount of 12.35 point at 435.65 compared with spot closing of 448.00. The number of contracts traded was 7,385.
Among Nifty calls, 5400 SP from the July month expiry was the most active call with contraction of 0.03 million open interest.
Among Nifty puts, 5000 SP from the July month expiry was the most active put with an addition of 0.19 million open interest.
The maximum OI outstanding for Calls was at 5400 SP (6.73mn) and that for Puts was at 5000 SP (7.46mn).
The respective Support and Resistance levels are: Resistance 5348.01 -- Pivot Point 5312.93--Support 5292.21.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.50 for July -month contract.
The top five scrips with highest PCR on OI were APIL 4.00, DIVISLAB 2.50, MRF 2.00, Sun Pharma 1.69, and Ambuja Cement 1.48.
Among the most active underlying, IFCI witnessed an addition of 1.74 million of Open Interest in the July month futures contract followed by LITL which witnessed contraction of 0.27 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed an addition of 0.71 million in the July month futures. Also, HDIL witnessed an addition of 0.51 million in Open Interest in the July month contract. Finally, Tata Motors witnessed contraction of 1.03 million of Open Interest in the near month futures contract.
