Nifty ends lower on January series expiry day

S&P CNX Nifty got a remarkable closing of the January F&O series gaining 2.80% and closed above 6,000 crucial mark; its highest close of the year on the series expiry day. However, market ended lower on Thursday as investors booked profits in index heavy-weights coupled with looming concerns over global growth slowdown after weak economic data from US and Germany. On global front, Asian markets suffered broad losses on Thursday, bringing a solid month of gains for most regional equities to an end, as investors reacted to a weak set of earnings reports and downbeat economic data from the US. Moreover, European shares fell as investors digested mixed earnings reports, with a warning from AstraZeneca knocking its shares while Ericsson surged after fourth-quarter results.

Back home, Indian equity market made a negative start and hovered around the pre-close line as investors remained sideways ahead of January derivatives contract expiry. The risk appetite also remained frail after the Reserve Bank of India in its third-quarter monetary policy review made further rate cuts conditional on government moves to control fiscal deficit. In the first half of the trade, market continued its weak trade amid investors caution mood. Investor sentiments also remained on pessimistic note after country’s FY12 GDP growth was revised to 6.2 percent from 6.5 percent. The government meanwhile has also pegged FY12 gross domestic savings at 30.8 percent, down from 34 percent earlier. Market continued its negative trade in the second half too taking cues from subdued European counterparts. Further, decline in the energy, finance and service stocks also dragged the market lower. However, the losses remain capped with the rise in banking stocks as the sentiments got a boost after the stronger than expected quarterly result from banks. Finally, Nifty ended the session with a loss of 21 points.   

Meanwhile, most of the sectoral indices on the NSE made a mixed closing. CNX PSU Bank up by 2.20%, CNX Media up by 1.76%, CNX Realty up by 1.41%, CNX PSE up by 0.70% and CNX FMCG up by 0.59% remained the top gainers in the trade. While CNX Finance down 0.78%, CNX Energy down 0.59%, CNX Service down 0.42%, CNX Infra down 0.25% and CNX Auto down 0.19% remained the losers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 1.74% and reached 14.13.  

The India VIX witnessed contraction of 1.74% at 14.13 as compared to its previous close of at 14.38 on Wednesday.

The 50-share S&P CNX Nifty lost 21.00 points or 0.35% to settle at 6,034.75.

Nifty February 2013 futures closed at 6,067.20 on Thursday at a premium of 32.45 points over spot closing of 6,034.75, while Nifty March 2013 futures ended at 6099.55, at a premium of 64.80 points over spot closing. Nifty February futures saw an addition of 2.90 million (mn) units taking the total outstanding open interest (OI) to 12.02 mn units. The near month February 2013 derivatives contract will expire on February 28, 2013.

From the most active contracts, Reliance Industries February 2013 futures were trading at a premium of 6.20 points at 893.45 compared with spot closing of 887.25. The number of contracts traded was 17,698.

ICICI Bank February 2013 futures were at a premium of 10.80 points at 1200.15 compared with spot closing of 1189.35. The number of contracts traded was 34,456.

SBI February 2013 futures were at a premium of 15.05 points at 2447.10 compared with spot closing of 2432.05. The number of contracts traded was 29,228.

Punjab National Bank February 2013 futures were at a discount of 1.00 points at 918.00 compared with spot closing of 919.00. The number of contracts traded was 19,416.  

Among Nifty calls, 6,200 SP from the February month expiry was the most active call with an addition of 0.59 million open interest.

Among Nifty puts, 6,000 SP from the February month expiry was the most active put with an addition of 0.46 million open interest.

The maximum OI outstanding for Calls was at 6200 SP (4.32 mn) and that for Puts was at 6,000 SP (3.46 mn).

The respective Support and Resistance levels are: Resistance 6053.48 -- Pivot Point 6039.32 -- Support 6020.58.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.01 for February -month contract.

The top five scrips with highest PCR on OI were Welcorp 2.50, Infosys 1.78, Hero Motoco 1.47, ITC 1.39 and Axis Bank 1.30.

Among most active underlying, NHPC witnessed contraction of 50.59 million of Open Interest in the February month futures contract followed by Unitech which witnessed contraction of 21.32 million of Open Interest in the near month contract. Meanwhile, Suzlon witnessed of contraction of 9.07 million in the February month futures. Also, Jaiprakash Associates witnessed contraction of 14.99 million in Open Interest in the February month contract. Finally, IFCI witnessed contraction of 19.47 million of Open Interest in the near month futures contract.