After witnessing marginal pull back in previous session, S&P CNX Nifty resumed its downward trend amid concerns over deficient monsoon and delay in key economic reforms. Moreover, the index traded in the red throughout the day’s trade and snapped the session with a cut of about 20 points. Though, global cues remained mixed as Asian markets ended lower amid Europe’s debt crisis worries and disappointing earnings numbers of Apple in the US. While, European counters were trading firmly after European Central Bank policymaker Ewald Nowotny raised the prospect of steps that could boost the firepower of the euro zone’s new bailout fund. Back home, the market saw the second highest turnover today of Rs 3.01 lakh crore while the highest ever turnover stood at Rs 3.29 lakh crore that traded on February 23, 2012.
Earlier, domestic benchmark made a negative opening following weak global cues. Moreover, investors remain concerned on mounting qualms over the government’s ability to launch few important reforms amid stiff resistance from various UPA allies and Opposition parties. Nifty breached its crucial 5,100 level after Metal shares like SAIL, Jindal Steel & Power, Hindalco Industries, Sterlite Industries, Sesa Goa, Tata Steel and Nalco edged lower in the trade after the International Monetary Fund said China’s economy faces significant downside risks. China is the world's largest consumer of copper and aluminum. Moreover, Butchery in telecom space also dampened the sentiments and the local index touched its intraday low in late morning session. Stocks like Idea Cellular, RCom and Bharti Airtel edged lower as decision on spectrum fee by the EGoM headed by Home Minister P Chidambaram was deferred. In the second half of day’s trade, market started paring losses supported by firm opening in European counters. Moreover, the losses also remain capped, helped by FMCG counters which remained the top gainer after companies like HUL, Dabur and Colgate Pamolive reported decent Q1 numbers. While, stellar Q1 number reported by HCL Technologies also spelled optimism in the market and helped Nifty to regain its crucial 5,100 mark. But, Nifty ended the session in the red with a marginal loss of about 20 points.
Meanwhile, most of the sectoral indices on the NSE were settled in the red, CNX Metal remained the major loser, down 0.98% followed by CNX PSU Bank down 0.96% and CNX Infra down by 0.84% while CNX FMCG and Bank IT surged 0.56% and 0.31% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged 1.30% and reached 16.75.
The India VIX witnessed contraction of 1.30% at 16.75 as compared to its previous close of at 16.97 on Tuesday.
The 50-share S&P CNX Nifty lost 18.60 points or 0.36% to settle at 5,109.60.
Nifty July 2012 futures closed at 5,112.55 at a premium of 2.95 points over spot closing of 5,109.60, while Nifty August 2012 futures were at 5139.20 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 contraction of 4.61 million (mn) units taking the total outstanding open interest (OI) to 12.33 mn units.
From the most active contract, Tata Motors July 2012 futures were at a premium of 0.10 point at 213.05 compared with spot closing of 212.95. The number of contracts traded was 16,128.
Tata Steel August 2012 futures were at a premium of 1.65 point at 387.70 compared with spot closing of 386.05. The number of contracts traded was 17,835.
ICICI Bank August 2012 futures were at a premium of 4.45 point at 923.55 compared with spot closing of 919.10. The number of contracts traded was 13,494.
Tata Steel July 2012 futures were at a premium of 1.80 points at 387.85 compared with spot closing of 386.05. The number of contracts traded was 22,096.
ICICI Bank July 2012 futures were at a premium of 1.00 point at 920.10 compared with spot closing of 919.10. The number of contracts traded was 18,377.
Among Nifty calls, 5300 SP from the July month expiry was the most active call with contraction of 0.75 million open interest.
Among Nifty puts, 5000 SP from the July month expiry was the most active put with an addition of 0.25 million open interest.
The maximum OI outstanding for Calls was at 5300 SP (8.00mn) and that for Puts was at 5000 SP (8.24 mn).
The respective Support and Resistance levels are: Resistance 5128.6 -- Pivot Point 5102.6--Support 5083.6.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.00 for July -month contract.
The top five scrips with highest PCR on OI were WEL Corp 10.05, AIL 4.00, Bajaj-Auto 2.52, Ambuja Cement 1.33, and Bata India 1.22.
Among the most active underlying, Suzlon witnessed an addition of 32.08 million of Open Interest in the July month futures contract followed by IFCI which witnessed contraction of 8.36 million of Open Interest in the near month contract. Meanwhile, LITL witnessed contraction of 20.11 million in the July month futures. Also, RCOM witnessed contraction of 9.27 million in Open Interest in the July month contract. Finally, JP Associates witnessed contraction of 4.82 million of Open Interest in the near month futures contract.
