Nifty ends below crucial 6,000 level

S&P Nifty erased early gains to end near intra-day low on Monday as investors booked profit in selected sectors ahead of third quarter earnings starting this week. On the global front, Asian markets closed lower as last week's gains prompted profit-taking overshadowing upbeat US job creation figures. Meanwhile, European markets also made the negative start on Monday.

Back home, Indian equity benchmark made a flat-to-positive opening with holding its key 6,000 levels in morning trades after positive US economic data fueled hopes of global growth recovery; however, gains were capped on caution ahead of third quarter earnings starting this week though, there are not much expectations from the December quarter. In late morning session, market erased early gains and turned negative as gains in metals, healthcare and auto were offset by losses in capital goods, realty, PSU Banks and FMCG sectors. Market continued its negative trade and in final session it lowered below the crucial 6,000 level and reached intra-day low tracing tepid cues from European counterparts. Finally, Nifty ended the session near its intra-day low with a loss of 27 points.  

Meanwhile, most of the sectoral indices on the NSE made a mixed closing. CNX Metal up by 1.02%, CNX Auto up by 0.41%, CNX Pharma up by 0.40%, CNX IT up by 0.36% and CNX PSE up by 0.07% remained the top gainers in the trade. While CNX FMCG down 1.11%, CNX Infra down 1.03%, CNX Finance down 0.94%, CNX Realty down 0.65% and CNX PSU Bank down 0.61% remained the losers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 4.11% and reached 13.92.

The India VIX witnessed an addition of 4.11% at 13.92 as compared to its previous close of at 13.37 on Friday.

The 50-share S&P CNX Nifty lost 27.75 points or 0.46% to settle at 5,988.40.

Nifty January 2013 futures closed at 6023.70 on Monday at a premium of 35.30 points over spot closing of 5,988.40, while Nifty February 2013 futures ended at 6057.15, at a premium of 68.75 points over spot closing. Nifty January futures saw contraction of 0.72 million (mn) taking the total outstanding open interest (OI) to 16.06 mn units. The near month January 2013 derivatives contract will expire on January 31, 2013.

From the most active contracts, IFCI January 2013 futures were trading at a premium of 0.50 at 39.10 compared with spot closing of 38.60. The number of contracts traded was 16,981.

Reliance Communications January 2013 futures were at a premium of 0.90 at 82.55 compared with spot closing of 81.65. The number of contracts traded was 11,367.

Hindalco Industries January 2013 futures were at a premium of 1.90 point at 135.40 compared with spot closing of 133.50. The number of contracts traded was 9,621.

Cairn India January 2013 futures were at a premium of 1.95 point at 344.45 compared with spot closing of 342.50. The number of contracts traded was 9,662.

Tata Steel January 2013 futures were at a premium of 6.55 point at 444.45 compared with spot closing of 437.90. The number of contracts traded was 22,917.

Among Nifty calls, 6,200 SP from the January month expiry was the most active call with an addition of 0.30 million open interest.

Among Nifty puts, 5,800 SP from the January month expiry was the most active put with  contraction of 0.07 million open interest.

The maximum OI outstanding for Calls was at 6200 SP (8.31mn) and that for Puts was at 5800 SP (6.30 mn).

The respective Support and Resistance levels are: Resistance 6027.98 -- Pivot Point 6002.57 -- Support 5962.98.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.24 for January -month contract.

The top five scrips with highest PCR on OI were Welcorp 5.00, GUJ Fluoro 2.57, Bajaj-Auto 1.29, Maruti 1.29, and ICICI Bank 1.21.

Among most active underlying, Unitech witnessed contraction of 0.64 million of Open Interest in the January month futures contract followed by IFCI which witnessed contraction of 4.04 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed of contraction of 1.29 million in the January month futures. Also, Jaiprakash Associates witnessed an addition of 3.14 million in Open Interest in the January month contract. Finally, Shree Renuka Sugars witnessed an addition of 1.62 million of Open Interest in the near month futures contract.