The fifty stock index -- Nifty -- snapped the day’s trade on a quite note as investors booked their initial gains in the last leg of the trade ahead of inflation data for the month of June slated to be released on July 16. Though, market traded with traction for most part of the session supported by better than expected TCS and HDFC bank’s Q1 FY13 numbers. Moreover, global cues too supported the sentiments as almost all the Asian markets were in the green after China’s second-quarter gross domestic product data landed in line with forecasts, offsetting worries that a slowdown in China could undermine fragile global growth while, European counters also exhibited a firm trend in the early trade. Back home, foreign institutional investors (FIIs) bought shares worth a net of Rs 268.54 crore on July 12. While, the rupee strengthened against dollar and traded higher by 31 paise at 55.63 a dollar on selling by banks and exporters amid persistent capital inflows.
The Indian equity market made a positive start, after previous sessions’ massacre, as investors kept themselves busy in buying beaten down fundamentally strong stocks. The sentiments were also supported by better than expected TCS Q1 numbers. The net profit of the company grew by nearly 12% quarter-on-quarter to Rs 3280.5 crore, which was quite better results as compared to software bellwether Infosys. Afterwards, market traded in the green above its crucial 5,250 mark as some support came from telecom stocks. Stocks of Idea Cellular, Bharti Airtel edged higher after Empowered Group of Ministers (EGoM) on telecom approved 'in principle' the mortgaging of spectrum. Meanwhile, India's exports fell 5.45% to $25.1 billion in June, while imports fell 13.46% to $35.3 billion, leaving a trade deficit of $10.3 billion. Exports between April and June fell 1.7%, totaling $75.2 billion. Moreover, firm opening in European counters also supported the sentiments and market traded firmly till mid noon trade. But in the last leg of trade, market, suddenly pared all its gains and turned red largely due to fall in metal space. Stocks like Hindalco, Jindal Steel, Sterlite Industries edged lower as China’s economy cooled to its weakest rate of growth in more than three years in Q2 June 2012. Moreover, turnaround in realty stocks too spooked the market sentiments. However, the losses remained capped as HDFC Bank reported better than expected Q1 FY13 numbers. HDFC Bank registered a jump of 30.64% in its net profit at Rs 1,417.39 crore for the first quarter ended June 30, 2012 while, total income of the bank increased by 34.36% at Rs 9,536.91 crore for Q1FY13 as compared Rs 7,098.00 crore for the corresponding quarter previous year. Finally, Nifty ended the session with a marginal cut of about 10 points.
Meanwhile, most of the sectoral indices on the NSE settled in the negative territory with CNX Realty losing the most, ending with a cut of 1.35% followed by CNX Metal down by 1.15% and CNX PSU Bank down by 1.09% while, CNX FMCG up 0.31% remained the lone gainer on NSE sectoral space. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 2.41% and reached 18.26.
The India VIX witnessed contraction of 2.41% at 18.26 as compared to its previous close of at 18.71 on Thursday.
The 50-share S&P CNX Nifty lost 8.00 points or 0.15% to settle at 5,227.25.Nifty July 2012 futures closed at 5,240.45 at a premium of 13.20 points over spot closing of 5,227.25, while Nifty August 2012 futures were at 5265.50 at a premium of 38.25 points over spot closing. The near month July 2012 derivatives contract will expire on Thursday i.e. July 26, 2012. Nifty July futures saw an addition of 0.48 million (mn) units taking the total outstanding open interest (OI) to 23.74 mn units.
From the most active contract, Tata Motors July 2012 futures were at a discount of 3.20 point at 232.80 compared with spot closing of 236.00. The number of contracts traded was 10,825.
HDFC Bank July 2012 futures were at a premium of 2.85 point at 588.85 compared with spot closing of 586.00. The number of contracts traded was 8,042.
Tata Steel July 2012 futures were at a discount of 10.85 point at 415.00 compared with spot closing of 425.85. The number of contracts traded was 9,720.
ICICI Bank July 2012 futures were at a premium of 2.80 points at 928.35 compared with spot closing of 925.55. The number of contracts traded was 13,765.
SBI July 2012 futures were at a discount of 2.05 point at 2,176.05 compared with spot closing of 2,178.10. The number of contracts traded was 23,600.
Among Nifty calls, 5400 SP from the July month expiry was the most active call with an addition of 0.77 million open interest.
Among Nifty puts, 5000 SP from the July month expiry was the most active put with contraction of 0.23 million open interest.
The maximum OI outstanding for Calls was at 5400 SP (9.15mn) and that for Puts was at 5000 SP (8.27 mn).
The respective Support and Resistance levels are: Resistance 5257.31 -- Pivot Point 5237.08--Support 5207.01.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.32 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 1.64, and OPTO Circuit 1.40
Among the most active underlying, IFCI witnessed contraction of 1.89 million of Open Interest in the July month futures contract followed by LITL which witnessed contraction of 0.85 million of Open Interest in the near month contract. Meanwhile, Unitech witnessed an addition of 0.23 million in the July month futures. Also, RCOM witnessed an addition of 0.50 million in Open Interest in the July month contract. Finally, Jaiprakash Associates witnessed contraction of 0.55 million of Open Interest in the near month futures contract.
