Nifty ends lower; registers lowest close of 2013

S&P CNX Nifty ended lower on Friday and registered its lowest close of the year 2013 amid poor third quarter earnings and slowdown in the economy even as the Asian peers moved higher. On global front, Asian pacific shares ended higher on Friday after China's trade data for January handily beat forecasts to underscore a recovery trend. Additionally, European shares rose on Friday after the European Central Bank rekindled expectations that it could again take the knife to interest rates.

Back home, Indian equity benchmark made a flat-to-positive opening amid mixed global cues as overnight, US market declined, taking a step back from their recent advance. In the first half of the trade, market traded positively on the back of fresh buying by funds and retail investors in select stocks. Traders were seen piling up position in IT and Infra stocks as sentiments got some support from a positive trend in the Asian region. However, in the second half of the trade market paring its early gains slipped into negative territory on account of selling in realty, auto, PSU bank and energy stocks. Investors also remained cautious ahead of IIP and WPI data to be released in upcoming week. Finally, Nifty ended the session near its intra-day low.

Meanwhile, most of the sectoral indices on the NSE made a negative closing. CNX PSU Bank down 1.45%, CNX Metal down 1.38%, CNX Pharma down 1.22% and CNX Realty down 1.20% remained the top losers in the trade. While CNX IT up by 0.79% and CNX Infra up by 0.19% remained the gainers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 1.81% and reached 15.16.

The India VIX witnessed an addition of 1.81% at 15.16 as compared to its previous close of at 14.89 on Thursday.

The 50-share S&P CNX Nifty lost 35.30 points or 0.59% to settle at 5,903.50.

Nifty February 2013 futures closed at 5,921.80 on Friday at a premium of 18.30 points over spot closing of 5,903.50, while Nifty March 2013 futures ended at 5,948.75, at a premium of 45.25 points over spot closing. Nifty February futures saw an addition of 0.16 million (mn) units taking the total outstanding open interest (OI) to 13.00 mn units. The near month February 2013 derivatives contract will expire on February 28, 2013.

From the most active contracts, Hindalco Industries February 2013 futures were trading at a premium of 0.90 points at 110.25 compared with spot closing of 109.35. The number of contracts traded was 18,078.

NTPC February 2013 futures were at a discount of 0.80 points at 147.40 compared with spot closing of 148.20. The number of contracts traded was 16,953.

Tata Motors February 2013 futures were at a premium of 0.70 points at 286.60 compared with spot closing of 285.90. The number of contracts traded was 9,820.

DLF February 2013 futures were at a discount of 1.25 points at 268.70 compared with spot closing of 269.95. The number of contracts traded was 9,791.

Reliance Industries February 2013 futures were at a premium of 4.80 points at 864.95 compared with spot closing of 860.15. The number of contracts traded was 12,733.

Among Nifty calls, 6,100 SP from the February month expiry was the most active call with an addition of 0.26 million open interest.

Among Nifty puts, 5,900 SP from the February month expiry was the most active put with an addition of 1.05 million open interest.

The maximum OI outstanding for Calls was at 6100 SP (7.70 mn) and that for Puts was at 5,900 SP (7.13 mn).

The respective Support and Resistance levels are: Resistance 5943.58 -- Pivot Point 5913.62 -- Support 5873.53.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.07 for February -month contract.

The top five scrips with highest PCR on OI were Welcorp 1.90, TCS 1.71, Indusind bank 1.33, ITC 1.29, and Infosys 1.24.

Among most active underlying, NHPC witnessed an addition of 16.08 million of Open Interest in the February month futures contract followed by Unitech which witnessed an addition of 0.55 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed of contraction of 1.91 million in the February month futures. Also, IFCI witnessed contraction of 0.66 million in Open Interest in the February month contract. Finally, RCOM witnessed an addition of 0.74 million of Open Interest in the near month futures contract.