Nifty ends lower amid weak global cues

CNX Nifty ended lower on Thursday amid weak global cues amid selling pressure in all major indices of the market. Domestic shares fell in-line with weak global equities that declined on market talk that a hedge fund had been liquidating large positions in commodities, as well as worries that the Federal Reserve could slow its bond buying program. On the global front, Asian markets closed with huge losses with Chinese Shanghai tumbling about three per cent due to a sell-off in the resource sector on the back of weaker global commodity prices, while financial stocks remained under pressure. Moreover, European stock markets made negative start in thin trade on Thursday.

Back home, pressurized by feeble global cues, Indian equity benchmark made a gap-down start below its crucial 5,900 levels. Overnight Wall Street ended lower as traders grew concerned that the US Federal Reserve could bring an early end to its huge stimulus programme. In the first half of trade, market traded in red, as cautious approach adopted by investors ahead of first day of Budget Session of Parliament influenced the trading sentiment. Market continued its sluggish trade in the second half too and slipped deeper into the red on the back of selling in all major indices. Market sentiments also remained cautious after President Pranab Mukherjee expressed concern over persisting difficult economic conditions, stating that the past year has been a difficult one for the economy. Finally, Nifty ended the session with a loss of 90 points.

Meanwhile, all of the sectoral indices on the NSE made a negative closing. CNX Metal down 3.02%, CNX Media down 2.66%, CNX Realty down 2.56%, CNX PSU Bank down 2.24% and CNX Finance down 2.13% remained the top losers. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 8.59% and reached 16.94.

The India VIX witnessed an addition of 8.59% at 16.94 as compared to its previous close of at 15.60 on Wednesday.

The 50-share S&P CNX Nifty lost 90.80 points or 1.53% to settle at 5,852.25.

Nifty February 2013 futures closed at 5,853.45 on Thursday at a premium of 1.20 points over spot closing of 5,852.25, while Nifty March 2013 futures ended at 5,883.70, at a premium of 31.45 points over spot closing. Nifty February futures saw an addition of 0.11 million (mn) units taking the total outstanding open interest (OI) to 16.17 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 0.05 points at 71.85 compared with spot closing of 71.80. The number of contracts traded was 11,059.

Tata Motors February 2013 futures were trading at a premium of 0.20 points at 298.10 compared with spot closing of 297.90. The number of contracts traded was 14,626.

Tata Steel February 2013 futures were trading at a premium of 1.50 points at 365.20 compared with spot closing of 363.70. The number of contracts traded was 11,086.

DLF February 2013 futures were at a premium of 1.20 points at 273.45 compared with spot closing of 272.25. The number of contracts traded was 19,792.

ICICI Bank February 2013 futures were at a premium of 3.65 points at 1082.25 compared with spot closing of 1078.60. The number of contracts traded was 19,990.

Among Nifty calls, 6,000 SP from the February month expiry was the most active call with an addition of 2.79 million open interest.

Among Nifty puts, 5,800 SP from the February month expiry was the most active put with  an addition  of 0.76 million open interest.

The maximum OI outstanding for Calls was at 6200 SP (10.33 mn) and that for Puts was at 5,900 SP (7.58 mn).

The respective Support and Resistance levels are: Resistance 5900.8-- Pivot Point 5872.6 -- Support 5824.05.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.81 for February -month contract.

The top five scrips with highest PCR on OI were TCS 1.82, Sun Pharma 1.63, India Cement 5.00, Infosys 1.39, and IndusInd Bank 1.30.

Among most active underlying, NHPC witnessed contraction of 0.72 million of Open Interest in the February month futures contract followed by Unitech which witnessed an addition of 0.71 million of Open Interest in the near month contract. Meanwhile, JP Associates witnessed of a contraction of 3.21 million in the February month futures. Also, IFCI witnessed an addition of 4.28 million in Open Interest in the February month contract. Finally, RCOM witnessed contraction of 0.92 million of Open Interest in the near month futures contract.