Nifty ends below crucial 6,000 level

S&P CNX Nifty ended lower on Wednesday, remained volatile for the entire session ahead of the third quarter result season and IIP numbers scheduled to be released later this week. On the global front, most Asian markets shut shop in the green as investors resumed buying after taking profits from a sharp rally at the start of the year while warily bracing for corporate earnings season to kick off in full force. Moreover, European counters made a positive opening after an encouraging start to the fourth quarter earnings season which buoyed investors’ sentiment.

Back home, domestic market made a flat-to-positive start tracking recovery in Asian markets with some support coming from reports that the government is planning to hike the price of subsidised LPG cylinders by Rs 130 during January-March 2013 and diesel prices by Rs 1.5 a litre every month. Market continued its positive trade in first half amid some strong buying in few front line stocks. However, in second half, market turned negative, crossing its crucial 6,000 level as investors remained caution ahead of third quarter earning slated to be released later this week and IIP data of November 2012. Profit-booking in metal, realty and FMCG stocks also weighed on the sentiment. Finally, Nifty ended the session with a loss of half percent.

Meanwhile, most of the sectoral indices on the NSE made a mixed closing. CNX Auto up by 0.74%, CNX Energy up by 0.27%, CNX Pharma up by 0.21%, CNX PSE up by 0.18% and CNX PSU Bank up by 0.05% remained the top gainers in the trade. While CNX FMCG down 1.52%, CNX Metal down 1.21%, CNX Realty down 1.00%, CNX IT down 0.76% and CNX Infra down 0.71% remained the losers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 0.38% and reached 13.32.  

The India VIX witnessed an addition of 0.38% at 13.32 as compared to its previous close of at 13.27 on Tuesday.

The 50-share S&P CNX Nifty lost 30.20 points or 0.50% to settle at 5,971.50.

Nifty January 2013 futures closed at 5,998.75 on Wednesday at a premium of 27.25 points over spot closing of 5,971.50, while Nifty February 2013 futures ended at 6,036.50, at a premium of 65.00 points over spot closing. Nifty January futures saw contraction of 0.18 million (mn) taking the total outstanding open interest (OI) to 15.50 mn units. The near month January 2013 derivatives contract will expire on January 31, 2013.

From the most active contracts, Unitech January 2013 futures were trading at a premium of 0.20 at 37.60 compared with spot closing of 37.40. The number of contracts traded was 13,006.

HDIL January 2013 futures were at a premium of 0.80 at 120.95 compared with spot closing of 120.15. The number of contracts traded was 13,256.

Tata Motors January 2013 futures were at a premium of 1.90 point at 328.90 compared with spot closing of 327.00. The number of contracts traded was 25,411.

DLF January 2013 futures were at a premium of 1.80 point at 234.65 compared with spot closing of 232.85. The number of contracts traded was 11,338.

Tata Steel January 2013 futures were at a premium of 3.95 point at 425.65 compared with spot closing of 421.70. The number of contracts traded was 12,925.

 Among Nifty calls, 6,200 SP from the January month expiry was the most active call with an addition of 0.32 million open interest.

Among Nifty puts, 5,800 SP from the January month expiry was the most active put with an addition  of 0.05 million open interest.

The maximum OI outstanding for Calls was at 6200 SP (8.39mn) and that for Puts was at 5800 SP (7.15 mn).

The respective Support and Resistance levels are: Resistance 6008.25 -- Pivot Point 5983.35 -- Support 5946.6.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.17 for January -month contract.

The top five scrips with highest PCR on OI were Welcorp 5.00, GUJ Fluoro 2.59, Bharti Airtel 1.28, Tata Motors 1.20 and Infosys 1.15.Among most active underlying, Unitech witnessed contraction of 4.81 million of Open Interest in the January month futures contract followed by IFCI which witnessed contraction of 7.37 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed of contraction of 0.68 million in the January month futures. Also, RCOM witnessed contraction of 2.26 million in Open Interest in the January month contract. Finally, GVK Power & Infrastructure witnessed an addition of 4.59million of Open Interest in the near month futures contract.