Nifty ends below crucial 5,800 level amid weak global cues

CNX Nifty ended lower on Tuesday amid selling pressure in all sector except IT. The fall also tracked a sell-off in global equities as investors feared a resurgence of the euro zone debt crisis after Italy's inconclusive election results. On global front, Asian markets ended in red with dealers spooked by an election in Italy that left no clear winner, leading to political uncertainty and fresh fears about euro-zone stability. Moreover, European markets made an awful start, with investors seeking safety as Italy faced political deadlock following crucial elections in the indebted euro-zone nation.

Back home, pressurized by sluggish global cues, Indian equity benchmark made a negative start below its crucial 5,850 level. Overnight, US markets tumbled with the start of new week, though the indices got a positive start but uncertainty about the outcome of elections in Italy led to sharp selling in the market. In the first half, market traded in negative territory as funds and retail investors booked profits ahead of the railway budget. Investors continued selling at several blue chip counters, amid lingering worries about the near term economic outlook. Market continued its weak trade in the second half too, amid the presentation of the railway budget for 2013-14 in parliament. Market extended its losses after Railway Minister Pawan Kumar Bansal presenting the rail budget for 2013-14 in the Lok Sabha, informed about the mounting losses of Indian Railways, though abstained from hiking passenger fares. Weak cues from subdued European counterparts also contributed to the market’s downfall. Finally, Nifty ended the session with a loss of 93 points. 

Meanwhile, most of the sectoral indices on the NSE made a negative closing. CNX Auto down 2.80%, CNX Metal down 2.66%, CNX Energy down 2.65%, CNX PSE down 2.30% and CNX Finance down 2.22% remained the top losers. While, CNX IT up by 0.87% remained the only gainer in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 3.76% and reached 17.36.

The India VIX witnessed an addition of 3.77% at 17.36 as compared to its previous close of at 16.73 on Monday.

The 50-share S&P CNX Nifty lost 93.40 points or 1.60% to settle at 5,761.35.

Nifty February 2013 futures closed at 5,767.00 on Tuesday at a premium of 5.65 points over spot closing of 5,761.35, while Nifty March 2013 futures ended at 5,793.35, at a premium of 32.00 points over spot closing. Nifty February futures saw contraction of 0.75 million (mn) units taking the total outstanding open interest (OI) to 15.08 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 discount of 0.05 points at 68.45 compared with spot closing of 68.50. The number of contracts traded was 12,994.

BHEL March 2013 futures were trading at a discount of 3.35 points at 199.25 compared with spot closing of 202.60. The number of contracts traded was 16,098.

Tata Motors February 2013 futures were trading at a premium of 1.30 points at 289.70 compared with spot closing of 288.40. The number of contracts traded was 15,525.

BHEL February 2013 futures were at a discount of 1.15 points at 201.45 compared with spot closing of 202.60. The number of contracts traded was 18,574.

DLF February 2013 futures were at a discount of 0.20 points at 270.00 compared with spot closing of 270.20. The number of contracts traded was 18,486.

Among Nifty calls, 6,000 SP from the February month expiry was the most active call with contraction of 0.17 million open interest.

Among Nifty puts, 5,800 SP from the February month expiry was the most active put with contraction of 0.74 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (9.14 mn) and that for Puts was at 5,800 SP (6.36 mn).

The respective Support and Resistance levels are: Resistance 5817.27-- Pivot Point 5782.93 -- Support 5727.02.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.72 for February -month contract.

The top five scrips with highest PCR on OI were TCS 2.01, Infosys 1.85, Sun Pharma 1.54, India Cement 1.38 and IndusInd Bank 1.30.

Among most active underlying, NHPC witnessed contraction of 59.65 million of Open Interest in the February month futures contract followed by Unitech which witnessed contraction of 10.04 million of Open Interest in the near month contract. Meanwhile, IFCI witnessed of a contraction of 20.57 million in the February month futures. Also, Jaiprakash Associates witnessed contraction of 8.10 million in Open Interest in the February month contract. Finally, RCOM witnessed contraction of 8.32 million of Open Interest in the near month futures contract.