Nifty ends below crucial 5,900 mark

The domestic index S&P CNX Nifty finished the December F&O series on a positive note with a gain of about 45 points or 0.75 percent. Today, market ended the session below its crucial 5,900 mark as bout of volatility witnessed in the late trade dragged the benchmark below crucial level. The risk appetite remained feeble on concern that US may slip into recession as US fiscal-cliff talks stalled. However, most of the Asian counters shut shop in the green led by Japanese benchmark which rose by about a percent on optimism that a new government in Japan will fuel the country’s sluggish economy. Moreover, European counters too traded slightly in the positive trajectory in the early deals. Back home, the sentiments also remain dampened on report that Planning Commission is seeking the National Development Council’s nod to lower the average annual growth rate for the 12th Plan period to 8 per cent from 8.2 per cent to make it more realistic.

Initially, domestic benchmark made a muted start with positive bias ahead of December month’s expiry in the derivatives segment. Later-on the index held its gain till first half of the trade after government announced sops for exporters. Further, hopes of more steps from the RBI to ease the liquidity situation also influenced the trading sentiments. Market turned red in the noon trade as investors shrugged off IT stock on the last day of December derivatives expiry as concerns over companies’ profitability in the coming quarters weighted on sentiments. Afterwards, the index traded range bound near its crucial 5,900 level for most part of the day’s trade in the absence of any positive trigger. But, in the last leg of trade market witnessed a sharp cut of about 40 points as investors resorted to ruthless position squaring from the Oil & Gas, Software, metal and technology counters. However, the losses remain capped as Oil exploration stocks like ONGC and Oil India edged higher as US crude oil futures traded near the highest level in 2 months as US lawmakers prepared to resume budget talks to meet a year-end deadline. Finally, Nifty ended the session below its crucial 5,900 mark with a cut of over half a percent.

Meanwhile, the sectoral indices on the NSE made a negative closing, CNX Media down 2.02%, CNX IT down 0.93%, CNX FMCG down 0.83%, CNX Energy down 0.82% and CNX Consumption down by 0.64% remained the top losers in the trade. While, CNX PSU Bank up by 0.44% remained the only gainer. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 2.55% and reached 13.74.

The India VIX witnessed contraction of 2.55% at 13.74 as compared to its previous close of at 14.10 on Wednesday.

The 50-share S&P CNX Nifty lost 35.50 points or 0.60% to settle at 5,870.10.

Nifty January 2013 futures closed at 5930.30 on Thursday at a premium of 60.20 points over spot closing of 5,870.10, while Nifty February 2013 futures ended at 5965.90, at a premium of 95.80 points over spot closing. Nifty January futures saw an addition of 2.94 million (mn) units taking the total outstanding open interest (OI) to 16.46 mn units. The near month January 2013 derivatives contract will expire on January 31, 2013.

From the most active contracts, Tata Motors January 2013 futures were at a premium of 2.30 at 311.60 compared with spot closing of 309.30. The number of contracts traded was 14,937.

Reliance Industries January 2013 futures were at a premium of 8.40 at 826.90 compared with spot closing of 818.50. The number of contracts traded was 18,860.

ICICI Bank January 2013 futures were at a premium of 6.80 point at 1147.70 compared with spot closing of 1140.90. The number of contracts traded was 16,360.

SBI January 2013 futures were at a premium of 16.40 point at 2406.40 compared with spot closing of 2390.00. The number of contracts traded was 25,683.

Infosys January 2013 futures were at a premium of 16.40 point at 2309.90 compared with spot closing of 2293.50. The number of contracts traded was 14,017.

Among Nifty calls, 6,000 SP from the January month expiry was the most active call with an addition of 1.17 million open interest.

Among Nifty puts, 5,800 SP from the January month expiry was the most active put with an addition of 0.45 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (4.66 mn) and that for Puts was at 5800 SP (3.97mn).

The respective Support and Resistance levels are: Resistance 5912.37 -- Pivot Point 5888.53 -- Support 5846.27.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.05 for January -month contract.

The top five scrips with highest PCR on OI were Suzlon 6.00, PNB 2.00, Grasim 1.73, Tata Chem 1.46, and TATA Comm 1.43.

Among most active underlying, Unitech witnessed an addition of 26.60 million of Open Interest in the January month futures contract followed by NHPC which witnessed an addition of 45.82 million of Open Interest in the near month contract. Meanwhile, IFCI witnessed contraction of 19.40 million in the January month futures. Also, JP Associaties witnessed contraction of 13.20 million in Open Interest in the January month contract. Finally, RCOM witnessed contraction of 14.86 million of Open Interest in the near month futures contract.