Selloff in the last leg of trade once again dragged Nifty below its crucial 5,200 mark and the benchmark ended the session with marginal cut. Though, buoyed by firm global cues market made a gap-up opening but deteriorated afterwards through out the day’s trade, till end. However, global cues remained supportive, Asian markets rallied as investors awaiting US Federal Reserve Chairman Ben Bernanke's view on the U.S. economy expected later in the day while European counters traded firmly in early trade. Although, all eyes are on the Federal Reserve chairman Ben S Bernanke, who is due to update the Congress on the state of the US economy on Tuesday as well as on Wednesday.
Back home, benchmark kicked-off the session with good gain triggered by strong cues from Asian peers. But, comment of Duvvuri Subbarao that, India’s wholesale and consumer price inflation numbers are way above the Reserve Bank of India’s comfort levels, trimmed hopes of a rate cut at the July 31 policy review and market started falling afterwards. However, market sustained to trade in green trajectory for most part of the trade supported by defensive space like healthcare and FMCG, where investors continued piling up positions. Afterwards, selling got intensified on report that International Monetary Fund (IMF) pegged India’s economic growth projection lower by 0.7% at 6.1% for 2012, while global growth forecast for the same year too has been reduced to 3.5% from 3.6%. The global lender has shaved 2013 growth projection of India to 6.5%, while global growth projection was lowered to 3.9% from 4.1%. In the last leg of trade, market entered into the negative terrain as sentiment got hurt after shares of aviation companies such as Kingfisher Airlines, Spicejet and Jet Airways edged lower after the oil marketing companies (OMCs) hiked the air turbine fuel (ATF) prices. The downside also remained capped as investors awaiting Centre to introduce few pending reform initiatives in order to bolster sagging growth. Finally, Nifty ended the session near its previous close with a modest cut of about 5 points.
Meanwhile, most of the sectoral indices on the NSE settled in the red, CNX Realty remained the major loser, down 1.39% followed by CNX Auto down 1.34% and CNX Infra down 0.53%, while CNX FMCG and CNX Pharma surged 1.04% and 0.62% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 5.27% and reached 17.78.
The India VIX witnessed contraction of 5.27% at 17.78 as compared to its previous close of at 18.77 on Monday.
The 50-share S&P CNX Nifty lost 4.40 points or 0.08% to settle at 5,192.85.
Nifty July 2012 futures closed at 5,198.65 at a premium of 5.80 points over spot closing of 5,192.85, while Nifty August 2012 futures were at 5222.45 at a premium of 29.60 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 0.37 million (mn) units taking the total outstanding open interest (OI) to 24.31 mn units.
From the most active contract, Tata Motors July 2012 futures were at a discount of 3.15 point at 222.75 compared with spot closing of 225.90. The number of contracts traded was 17,327.
Tata Steel July 2012 futures were at a premium of 1.45 point at 406.75 compared with spot closing of 405.30. The number of contracts traded was 10,532.
ICICI Bank July 2012 futures were at a premium of 4.40 point at 925.45 compared with spot closing of 921.05. The number of contracts traded was 13,715.
Adani Enterprises July 2012 futures were at a premium of 0.90 points at 194.60 compared with spot closing of 193.70. The number of contracts traded was 9,891.
SBI July 2012 futures were at a discount of 23.60 point at 2,181.45 compared with spot closing of 2,205.05. The number of contracts traded was 19,568. Among Nifty calls, 5300 SP from the July month expiry was the most active call with an addition of 0.93 million open interest.
Among Nifty puts, 5000 SP from the July month expiry was the most active put with an addition of 0.12 million open interest.
The maximum OI outstanding for Calls was at 5300 SP (9.52mn) and that for Puts was at 5000 SP (8.61 mn).
The respective Support and Resistance levels are: Resistance 5225.8 -- Pivot Point 5203.75--Support 5170.8.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.20 for July -month contract.
The top five scrips with highest PCR on OI were AIL 4.00, MRF 2.00, DR Reddy 1.51, DIVISLAB 1.29, and Grasim 1.18.
Among the most active underlying, IFCI witnessed contraction of 5.60 million of Open Interest in the July month futures contract followed by Unitech which witnessed contraction of 0.92 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed contraction of 0.63 million in the July month futures. Also, Jaiprakash Associates witnessed contraction of 0.56 million in Open Interest in the July month contract. Finally, Tata Motors witnessed contraction of 0.12 million of Open Interest in the near month futures contract.
