Nifty ends lower amid weak domestic cues

S&P CNX Nifty ended marginally lower on Monday amid volatility and profit booking in IT, infra and FMCG stocks. On the global front, European markets traded largely in the green in early trade ahead of the finance chiefs meeting in Brussels today to discuss aid to Cyprus and Greece as a tightening election contest in Italy and corruption allegations in Spain disrupt market calm. Meanwhile, most of the Asian peers remained shut for the Lunar New Year holiday.

Back home, Indian equity benchmark made a flat to negative start, however gains remain short-lived. Weak sentiments prevailed in the first half of trade, as investors remained cautious ahead of key macroeconomic data such as industrial production and inflation which is expected in the early part of the week. The December IIP data on Feb 12 and January wholesale price index (WPI) inflation figure on Feb 14 will be in focus. Further, sentiments got dampen on weak quarterly earnings by some leading companies. However, in the second half, market regained some strength and turned positive on account of buying in realty, pharma, FMCG and energy stocks. In the final hour of trade, market again exhibited the volatile trade and entered into negative territory. Investors’ sentiments were weighed down after Society of Indian Automobile Manufacturers (SIAM) reported domestic passenger car sales declined by 12.45 per cent in January, 2013. Finally, Nifty ended the session with marginal loss.          

Meanwhile, sectoral indices on the NSE made a mixed closing. CNX Pharma up by 0.84%, CNX Realty up by 0.60%, CNX PSU Bank up by 0.23%, and CNX Energy up by 0.05% remained the top gainers in the trade. While CNX Infra down 0.50%, CNX PSE down 0.49%, CNX IT down 0.30%, CNX FMCG and Metal both down 0.26% remained the losers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 3.23% and reached 15.65.  

The India VIX witnessed an addition of 3.23% at 15.65 as compared to its previous close of at 15.16 on Friday.

The 50-share S&P CNX Nifty lost 0.10 points or 5.65% to settle at 5,897.85.

Nifty February 2013 futures closed at 5,921.35 on Monday at a premium of 23.50 points over spot closing of 5,897.85, while Nifty March 2013 futures ended at 5,951.45, at a premium of 53.60 points over spot closing. Nifty February futures saw an addition of 0.11 million (mn) units taking the total outstanding open interest (OI) to 13.11 mn units. The near month February 2013 derivatives contract will expire on February 28, 2013.

From the most active contracts, JP Associates February 2013 futures were trading at a premium of 0.50 points at 73.00 compared with spot closing of 72.50. The number of contracts traded was 8,941.

Hindalco Industries February 2013 futures were at a premium of 0.05 points at 112.60 compared with spot closing of 112.55. The number of contracts traded was 7,921.

Tata Motors February 2013 futures were at a discount of 0.75 points at 291.50 compared with spot closing of 292.25. The number of contracts traded was 7,032.

DLF February 2013 futures were at a premium of 1.10 points at 272.30 compared with spot closing of 271.20. The number of contracts traded was 9,223.

Hexaware Technologies February 2013 futures were at a premium of 0.10 points at 84.20 compared with spot closing of 84.10. The number of contracts traded was 5,969.

Among Nifty calls, 6,100 SP from the February month expiry was the most active call with contraction of 0.28 million open interest.

Among Nifty puts, 5,900 SP from the February month expiry was the most active put with contraction of 0.26 million open interest.

The maximum OI outstanding for Calls was at 6100 SP (7.42 mn) and that for Puts was at 5,900 SP (6.86 mn).

The respective Support and Resistance levels are: Resistance 5921.63 -- Pivot Point 5900.36 -- Support 5876.58.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.05 for February -month contract.

The top five scrips with highest PCR on OI were Welcorp 1.90, TCS 1.75, Indusind bank 1.28, Infosys 1.28 and ITC 1.22.

Among most active underlying, NHPC witnessed an addition of 4.27 million of Open Interest in the February month futures contract followed by Unitech which witnessed an addition of 0.59 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed of an addition of 0.59 million in the February month futures. Also, IFCI witnessed contraction of 0.39 million in Open Interest in the February month contract. Finally, RCOM witnessed an addition of 0.27 million of Open Interest in the near month futures contract.