CNX S&P Nifty, after witnessing two days of continuous fall, exhibited consolidation on Monday ahead of muhurat trading session on Nov 13. Couple of gloomy economic indicators, which pointed that the economy was not out of the woods yet, mainly discouraged investors from pouring their money in risky equities. Feeble global cues too added to the investors’ glum as Asian markets ended mostly lower as sentiments were weighed down by concerns over US fiscal crisis along with Greece’s bailout, which spoiled optimism over world’s largest economy’s growth prospects. Moreover, European counters were trading mixed ahead of a meeting of euro-zone finance ministers in Brussels later in the day.
Earlier, frontline equity indices made a decent opening and traded slightly in the green in first couple of hours but much lower than expected industrial output data for September month dented the sentiment in rest of the session. India’s index of industrial production (IIP), a key measure of industrial output witnessed contraction of 0.4 percent in September 2012 at 163.6, way below the consensus estimates of 3 percent growth figure. Afterwards, market turned choppy as India’s Consumer Price Index (CPI) too failed to cheer traders’ sentiment as provisional annual inflation rate based on all India general CPI (combined) for October 2012 on point to point basis stood at 9.75 percent as compared to 9.73 percent for the previous month of September 2012. Depreciating rupee too dampened the sentiments as it breached the 55 mark after data showed that a record trade deficit and a contraction in factory output stoked fears about economic growth at a time of continued high inflation. Meanwhile, investors turned their focus towards the monthly WPI inflation data for October which is likely to accelerate, since some level of pass-through of the recent fuel price hike will be seen. However, losses remain capped as investors continued to show buying interests in Consumer Durables counter, which surged over a percent led by Gitanjali Gems, Rajesh Exports and Titan Industries. The rate sensitive banking and realty too found takers in the session as they closed with notable gains of around a percent. Finally, Nifty ended the session almost near its pre-close level.
Meanwhile, on the NSE CNX Metal remained the major loser, down 0.73% followed by CNX MNC down 0.35% and CNX Energy down by 0.26% while CNX PSU Bank and CNX Realty rose 1.09% and 0.97% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, increased by 3.41% and reached 14.86.
The India VIX witnessed an addition of 3.41% at 14.86 as compared to its previous close of at 14.37 on Friday.
The 50-share S&P CNX Nifty lost 2.55 points or 0.04% to settle at 5,683.70.
Nifty November 2012 futures closed at 5711.10 on Monday at a premium of 27.40 points over spot closing of 5,683.70, while Nifty December 2012 futures ended at 5746.20, at a premium of 62.50 points over spot closing. Nifty November futures saw contraction of 0.45 million (mn) units taking the total outstanding open interest (OI) to 18.45 mn units. The near month November 2012 derivatives contract will expire on November 29, 2012.
From the most active contracts, Reliance Communications November 2012 futures were trading at a premium of 0.05 at 59.40 compared with spot closing of 59.35. The number of contracts traded was 14,505.
JP Associates November 2012 futures were trading at a discount of 0.30 at 92.85 compared with spot closing of 93.15. The number of contracts traded was 10,783.
HDIL November 2012 futures were at a discount of 0.05 point at 110.90 compared with spot closing of 110.95. The number of contracts traded was 11,463.
Tata Motors November 2012 futures were at a premium of 1.15 point at 282.05 compared with spot closing of 280.90. The number of contracts traded was 11,503.
DLF November 2012 futures were at a premium of 1.25 point at 206.75 compared with spot closing of 205.50. The number of contracts traded was 12,394.
Among Nifty calls, 5,900 SP from the November month expiry was the most active call with an addition of 0.26 million open interest.
Among Nifty puts, 5,600 SP from the November month expiry was the most active put with an addition of 0.90 million open interest.
The maximum OI outstanding for Calls was at 6000 SP ( 7.87 mn) and that for Puts was at 5600 SP (8.28 mn).
The respective Support and Resistance levels are: Resistance 5713.15 -- Pivot Point 5689.45 -- Support 5660.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.09 for November -month contract.
The top five scrips with highest PCR on OI were Welcorp 18.00, Abirlanuvo 2.00, Tata Motors 1.78, Canara Bank 1.71 and Jubl Food 1.64.
Among most active underlying, Unitech witnessed an addition of 1.28 million of Open Interest in the November month futures contract followed by Jaiprakash Associates which witnessed an addition of 2.14 million of Open Interest in the near month contract. Meanwhile, IFCI witnessed contraction of 0.08 million in the November month futures. Also, RCOM witnessed an addition of 9.52 million in Open Interest in the November month contract. Finally, HDIL witnessed an addition of 7.21 million of Open Interest in the near month futures contract.
