Nifty marginally escapes breaching 5,100 mark; ends at two months low

The start of expiry week for the Nifty turned out to be a daunting one with the index breaching its crucial level and ending near the two months low. It was the biggest percentage fall for Nifty since May 8, closing near the support level of 5,100. Though, the major cause was the global concern which re-surfaced with the fear that more regions of Spain in Europe will need government support to remain afloat, while the situation in Greece too raised concern.

But apart from the Euro zone crisis the domestic jitters too played role in taking the markets lower. Voices raised from government allies on FDI in retail issue, made traders worried that the reform measures may get stalled, which were likely to speed up after the Presidential election. The weak start of the European markets added pressure on the slide and Nifty at one point of time looked very close to breach the 5,100 mark; however it proved the major support and the index ended the day’s journey at around 5,120.

Market-men were seen booking profits across the sectors with metal suffering the most, as demand is likely to get impacted with the slowing global economy. CNX metal lost over 3 percent closely followed by CNX realty which was down by around 3 percent and CNX Auto that lost close to 2.5 percent. The India VIX witnessed an addition of 10.48% at 18.66 as compared to its previous close of at 16.89 on Friday.

The 50-share S&P CNX Nifty lost 87.15 points or 1.67% to settle at 5,117.95.

Nifty July 2012 futures closed at 5,120.40 at a premium of 2.45 points over spot closing of 5,117.95, while Nifty August 2012 futures were at 5142.25 at a premium of 24.30 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 1.29 million (mn) units taking the total outstanding open interest (OI) to 22.00 mn units.

From the most active contract, Tata Motors July 2012 futures were at a premium of 0.40 point at 216.00 compared with spot closing of 215.60. The number of contracts traded was 13,577.

Tata Steel July 2012 futures were at a premium of 0.35 point at 398.70 compared with spot closing of 398.35. The number of contracts traded was 15,252.

ICICI Bank July 2012 futures were at a premium of 2.70 point at 916.20 compared with spot closing of 913.50. The number of contracts traded was 25,477.

HDFC Bank July 2012 futures were at a premium of 2.05 points at 574.75 compared with spot closing of 572.70. The number of contracts traded was 9,858.

SBI July 2012 futures were at a premium of 6.20 point at 2,097.25 compared with spot closing of 2,091.05. The number of contracts traded was 28,453.

Among Nifty calls, 5300 SP from the July month expiry was the most active call with contraction of 0.53 million open interest.

Among Nifty puts, 5000 SP from the July month expiry was the most active put with an addition of 0.57 million open interest.

The maximum OI outstanding for Calls was at 5300 SP (10.03mn) and that for Puts was at 5000 SP (8.27 mn).

The respective Support and Resistance levels are: Resistance 5152.06 -- Pivot Point 5130.08--Support 5095.96.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.03 for July -month contract.

The top five scrips with highest PCR on OI were AIL 4.00, Bajaj-Auto 2.21, Indian bank 1.50, Gail 1.27, and Bata India 1.21.

Among the most active underlying, Suzlon witnessed contraction of 20.35 million of Open Interest in the July month futures contract followed by IFCI which witnessed contraction of 10.93 million of Open Interest in the near month contract. Meanwhile, Unitech witnessed contraction of 5.93 million in the July month futures. Also, RCOM witnessed contraction of 6.65 million in Open Interest in the July month contract. Finally, JP Associaties witnessed contraction of 5.33 million of Open Interest in the near month futures contract.