Nifty ends near intraday low; rate sensitives weighed on sentiments

The domestic index S&P CNX Nifty snapped the day’s trade near its intraday low led by rate sensitive like banking and realty stocks ahead of the GDP data later this week. Moreover, global cues too remain subdued as most of the Asian equity indices went home with red mark as investors were tired of waiting for central banks in China and the US to take some measures to support business activity in the world's largest economies while, European counters too traded in the negative terrain in the early trade on the back of looming recession across the euro zone. Back home, the rupee dropped to 1-week low in low volumes, with pair at 55.60/61 versus Friday’s close of 55.49/50. It rose to as much as 55.63 in trade, the highest since August 20.

Initially, market traded on a flat note with the start of August F&O expiry week. Afterwards, market traded in the tight band a tad below its pre-close level till late morning trade as investors remained cautious ahead of GDP data scheduled to be released on August 31, 2012. But, selling got intensified in the noon session due to political deadlock over the comptroller and auditor general (CAG) reports. Moreover, offloading in rate sensitive sectors like, banking, realty and capital goods too dampened the sentiments as hopes of a rate cut by the central bank faded as inflation continues to remain way above its comfort zone of 5%. The sentiments also remained under pressure after the Reserve Bank of India (RBI) said that growth deceleration in Indian economy have been led primarily by a 46% dip in new investments in large projects. Market continued its downfall and touched its intraday low in last leg of trade as sentiments were hammered by metal shares, which lost ground on concerns that demand would be lower on the back of weakening economic scenario in China after government data showed that profits of major industrial enterprises declined by 5.4% in July. However, Nifty managed to hold its crucial 5,350 mark as some amount of support came in from FMGC space on reports of revival of monsoon rains this month. Meanwhile, refining stocks too aided the sentiments on hopes for higher margins as Venezuelan gasoline exports are expected to be impacted as firefighters struggle to put out a blaze at the country's biggest refinery.

Meanwhile, most of the sectoral indices on the NSE were settled in the red, CNX PSU Bank remained the major gainer, down 2.74% followed by CNX Realty down 2.50% and Bank Nifty down by 1.77% while CNX FMCG and CNX Media surged 0.29% and 0.06% in the trade, respectively. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, rose 1.92% and reached 16.47.

The India VIX witnessed an addition of 1.92% at 16.47 as compared to its previous close of at 16.16 on Friday.

The 50-share S&P CNX Nifty lost 36.45 points or 0.68% to settle at 5,350.25.

Nifty August 2012 futures closed at 5362.40 on Monday at a premium of 12.15 points over spot closing of 5,350.25, while Nifty September 2012 futures were at 5393.10 at a premium of 42.85 points over spot closing. Nifty August futures saw a contraction of 1.81 million (mn) units taking the total outstanding open interest (OI) to 23.48 mn units. The near month August 2012 derivatives contract will expire on Thursday i.e. August 30, 2012.

From the most active contracts, Bharti Airtel August 2012 futures were at a premium of 0.80 points at 249.30 compared with spot closing of 248.50. The number of contracts traded was 10,439.

Tata Motors August 2012 futures were trading at a premium of 0.65 points at 241.20 compared with spot closing of 240.55. The number of contracts traded was 13,099.

Tata Steel August 2012 futures were at a premium of 0.85 point at 385.80 compared with spot closing of 384.95. The number of contracts traded was 17,765.

ICICI Bank August 2012 futures were at a premium of 2.80 points at 937.95 compared with spot closing of 935.15. The number of contracts traded was 15,538.

SBI August 2012 futures were at a premium of 2.05 point at 1847.05 compared with spot closing of 1845.00. The number of contracts traded was 42,150. 

Among Nifty calls, 5500 SP from the August month expiry was the most active call with contraction of 0.14 million open interest.

Among Nifty puts, 5300 SP from the August month expiry was the most active put with an addition of 0.32 million open interest.

The maximum OI outstanding for Calls was at 5500 SP (10.57 mn) and that for Puts was at 5300 SP (10.84 mn).

The respective Support and Resistance levels are: Resistance 5384.05 -- Pivot Point 5365.35 -- Support 5331.55.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.79 for August -month contract.

The top five scrips with highest PCR on OI were Orient Bank 4.00, M&M 1.60, IDFC 1.57, Ambuja Cement 1.45 and Bajaj-Auto 1.44. 

Among the most active underlying, Suzlon witnessed an addition of 24.43 million of Open Interest in the August month futures contract followed by IFCI which witnessed contraction of 10.28 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed contraction of 4.02 million in the August month futures. Also, Unitech witnessed contraction of 15.56 million in Open Interest in the August month contract. Finally, JP Associates witnessed contraction of 1.94 million of Open Interest in the near month futures contract.