Market saw trend reversal on Wednesday and Nifty gave up most of its yesterday’s gains amid weak global cues and profit booking. The rupee also declined and traded at 55.44 against the dollar. On the global front, earnings concern dominated the US Street overnight, however, Asian counters, after a subdued opening, ended on a mixed note as most of the regional counters pared initial losses in the end. Moreover, European shares were trading lower on Wednesday on worries that the sluggish global economy may hurt earnings. Back home, losses remained capped after Indian Meteorological Department (IMD) reported that rainfall deficit over the past week reduced to 23%, indicating that monsoon has revived.
Earlier, domestic market kick-started the day on a choppy note as global cues remained un-supportive while, the sentiments in the domestic market also remained cautious ahead of Thursday’s important session. Results from IT giants, TCS and Infosys will vie for investors’ attention along with the latest IIP data. Afterwards, Nifty traded in the tight range of 5,310-5,340 level till mid noon trade due to lack of any upside trigger. Meanwhile, FMCG shares were down on concerns that lower agri-output could lead to higher input costs. ITC and Hindustan Unilever were both down over 1% each. In the last leg of trade, selling got intensified and the index touched its intraday low near 5,300 mark following choppy trade in European counters. The sentiments also remained dampen as profit booking witnessed in Auto shares after recent gains following encouraging sales growth of 8.3% in June compared to the same month last year. Tata Motors was the top loser down 2.2% in the auto pack. Moreover, good set of Q1 FY13 numbers from HDFC also failed to cheer the market’s sentiments. The non-banking finance company registered 19% rise in April-June quarter net profit at Rs 1001.91 crore as compared to Rs 844.50 crore in the similar quarter a period ago. Finally, Nifty snapped the day’s trade near its intraday low with a cut of about 40 points.
Meanwhile, all the sectoral indices on the NSE settled in the red, CNX FMCG remained the major loser, losing 1.38% followed by CNX Auto down 1.14% and CNX Realty down by 1.00% in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged 3.14% and reached 18.39.
The India VIX witnessed an addition of 3.14% at 18.39 as compared to its previous close of at 17.83 on Tuesday.
The 50-share S&P CNX Nifty lost 39.05 points or 0.73% to settle at 5,306.30.
Nifty July 2012 futures closed at 5,322.90 at a premium of 16.60 points over spot closing of 5,306.30, while Nifty August 2012 futures were at 5348.65 at a premium of 42.35 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 0.29 million (mn) units taking the total outstanding open interest (OI) to 23.25 mn units.
From the most active contract, Reliance Communications July 2012 futures were at a premium of 0.65 point at 70.95 compared with spot closing of 70.30. The number of contracts traded was 10,422.
Tata Motors July 2012 futures were at a discount of 2.20 point at 238.80 compared with spot closing of 241.00. The number of contracts traded was 12,534.
ICICI Bank July 2012 futures were at a premium of 2.10 point at 938.05 compared with spot closing of 935.95. The number of contracts traded was 14,740.
Tata Steel July 2012 futures were at a discount of 10.45 points at 425.10 compared with spot closing of 435.55. The number of contracts traded was 8,842.
HDFC July 2012 futures were at a premium of 3.05 point at 680.55 compared with spot closing of 677.50. The number of contracts traded was 7,521.
Among Nifty calls, 5400 SP from the July month expiry was the most active call with an addition of 0.27 million open interest.
Among Nifty puts, 5000 SP from the July month expiry was the most active put with an addition of 0.16 million open interest.
The maximum OI outstanding for Calls was at 5400 SP (7.95mn) and that for Puts was at 5000 SP (8.07mn).
The respective Support and Resistance levels are: Resistance 5344.35 -- Pivot Point 5316.6--Support 5299.55.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.46 for July -month contract.
The top five scrips with highest PCR on OI were AIL 4.00, DIVISLAB 2.00, MRF 2.00, Sun Pharma 1.45, and LT 1.27.
Among the most active underlying, IFCI witnessed contraction of 1.36 million of Open Interest in the July month futures contract followed by RCOM which witnessed contraction of 1.06 million of Open Interest in the near month contract. Meanwhile, Unitech witnessed an addition of 0.16 million in the July month futures. Also, Jaiprakash Associates witnessed an addition of 1.49 million in Open Interest in the July month contract. Finally, HDIL witnessed contraction of 0.92million of Open Interest in the near month futures contract.
