Nifty snaps three days winning streak; ends below 6,050 mark

S&P CNX Nifty ended lower on Tuesday amid profit booking. On global front, Asian pacific shares ended mostly lower on Tuesday, after the Bank of Japan announced the results of its latest policy meeting. Additionally, European shares too were languishing in red terrain as investors awaited a cue from key US earnings release later in the day before attempting fresh push towards new 2-year highs.

Back home, Indian equity benchmark, after three consecutive sessions’ of rally, made a flat-to-positive start and hovered near its pre-close mark as market participants traded cautiously as the regional peers were not in good shape. In the first half of the trade, market continued positive trade with the traction supported by better-than- estimated third quarter earnings posted by some blue-chip companies. However, in the second half, market pared its morning gains and turned negative on account of selling in frontline counters as the investors sentiments were weighed down after Standard & Poor’s (S&P) issued an analysis saying a negative outlook on India has a more than 50 percent possibility of getting confirmed. In the last leg of trade, market reached its intra-day low as traders were seen selling in Realty, PSU Banks, and FMCG stocks. Finally, Nifty ended the session near its intra-day low.   

Meanwhile, all of the sectoral indices on the NSE made a negative closing. CNX realty down 2.08%, CNX PSU Bank down 1.58%, CNX FMCG down 1.26%, CNX PSE down 0.86% and CNX infra down 0.85% remained the top losers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 1.68% and reached 13.89. 

The India VIX witnessed an addition of 1.68% at 13.89 as compared to its previous close of at 13.66 on Monday.

The 50-share S&P CNX Nifty lost 33.80 points or 0.56% to settle at 6,048.50.

Nifty January 2013 futures closed at 6,061.55 on Tuesday at a premium of 13.05 points over spot closing of 6,048.50, while Nifty February 2013 futures ended at 6,099.90, at a premium of 51.40 points over spot closing. Nifty January futures saw contraction of 0.89 million (mn) taking the total outstanding open interest (OI) to 13.82 mn units. The near month January 2013 derivatives contract will expire on January 31, 2013.

From the most active contracts, JP Associates January 2013 futures were trading at a premium of 0.10 at 90.45 compared with spot closing of 90.35. The number of contracts traded was 9,732.

Reliance Communications January 2013 futures were at a discount of 0.35 at 87.65 compared with spot closing of 88.00. The number of contracts traded was 22,784.

DLF January 2013 futures were at a discount of 0.25 at 253.75 compared with spot closing of 254.00. The number of contracts traded was 11,096.

Hindustan Unilever January 2013 futures were at a premium of 17.35 point at 482.55 compared with spot closing of 465.20. The number of contracts traded was 46,984.

Reliance Industries January 2013 futures were at a premium of 1.90 point at 923.60 compared with spot closing of 921.70. The number of contracts traded was 18,293.

Among Nifty calls, 6,200 SP from the January month expiry was the most active call with an addition of 0.68 million open interest.

Among Nifty puts, 6,000 SP from the January month expiry was the most active put with contraction of 0.21 million open interest.

The maximum OI outstanding for Calls was at 6200 SP (8.93 mn) and that for Puts was at 6,000 SP (8.79 mn).

The respective Support and Resistance levels are: Resistance 6086.37 -- Pivot Point 6063.43 -- Support 6025.57.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.42 for January-month contract.

The top five scrips with highest PCR on OI were Mcleodruss 3.00, Welcorp 2.50, GUJ Fluoro 2.26, Infosys 2.10 and SRTransfin 1.83.

Among most active underlying, NHPC witnessed contraction of 1.83 million of Open Interest in the January month futures contract followed by JP Associaties which witnessed contraction of 1.21 million of Open Interest in the near month contract. Meanwhile, IFCI witnessed of contraction of 0.48 million in the January month futures. Also, Rcom witnessed contraction of 7.64 million in Open Interest in the January month contract. Finally, RPower witnessed contraction of 2.25 million of Open Interest in the near month futures contract.