Nifty snaps February F&O series with a drastic cut of 5.66%

The domestic index, CNX Nifty finished the February F&O series on a negative note with a loss of about over 5-percent. Today, market slumped to a three-month low after the Budget raised surcharge on corporate tax to 10% from 5% for domestic companies whose taxable income exceeds Rs 10 crore per year. Investors were also cautious as they rolled over their positions from the near term February series to March series in the futures and options segment. On global front, Asian shares extended gains for a second day as sentiment improved after US Federal Reserve chairman Ben Bernanke reaffirmed his commitment to strong stimulus. Moreover, European shares too rose after Draghi’s stimulus comments.

Back home, prolonging its previous session’s rally, Indian equity benchmark made a gap-up start on the back of firm global cues and positive outlook presented by the latest Economic Survey. Overnight, US stocks ended higher on upbeat economic data and the Federal Reserve chief’s commitment to lose the monetary policy. In the first half, market traded in positive territory, due to positive global cues. However, in the second half, market pared its early gains and slipped into the red after the announcement of Union Budget 2013-14, which failed to enthuse investors which had hoped big from the Finance Minister, P Chidambaram. In the last leg of trade, selling pressure was witnessed in all major indices except IT. Finally, Nifty ended the session near its intra-day low with a loss of 103 points.

Meanwhile, most of the sectoral indices on the NSE made a negative closing. CNX PSU Bank down 5.63%, CNX Finance down 3.49%, CNX Infra down 3.04%, CNX Metal down 2.94% and CNX Realty down 2.87% remained the top losers. While, CNX IT up by 0.48% remained the only gainer in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 8.44% and reached 14.86. 

The India VIX witnessed contraction of 8.44% at 14.86 as compared to its previous close of at 16.23 on Wednesday.

The 50-share S&P CNX Nifty lost 103.85 points or 1.79% to settle at 5,693.05.

Nifty March 2013 futures closed at 5729.4 on Thursday at a premium of 36.35 points over spot closing of 5,693.05, while Nifty April 2013 futures ended at 5759.3, at a premium of 66.25 points over spot closing. Nifty March futures saw an addition of 2.50 million (mn) units taking the total outstanding open interest (OI) to 14.00 mn units. The near month March 2013 derivatives contract will expire on March 28, 2013.

From the most active contracts, DLF March 2013 futures were trading at a premium of 1.30 points at 278.2 compared with spot closing of 276.90. The number of contracts traded was 22,031.

Reliance Industries March 2013 futures were trading at a premium of 3.95 points at 820.95 compared with spot closing of 817.00. The number of contracts traded was 33,411.

ICICI Bank March 2013 futures were trading at a premium of 0.55 points at 1048.55 compared with spot closing of 1,048.00. The number of contracts traded was 36,261.

State Bank of India March 2013 futures were at a discount of 5.00 points at 2096 compared with spot closing of 2,101.00. The number of contracts traded was 56,540.

Larsen & Toubro March 2013 futures were at a premium of 3.70 points at 1373.7 compared with spot closing of 1,370.00. The number of contracts traded was 20,038. 

Among Nifty calls, 6,000 SP from the March month expiry was the most active call with an addition of 1.40 million open interest.

Among Nifty puts, 5,700 SP from the March month expiry was the most active put with an addition of 1.62 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (5.35 mn) and that for Puts was at 5,700 SP (6.16mn).

The respective Support and Resistance levels are: Resistance 5804.67-- Pivot Point 5738.28 -- Support 5626.67.

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

The top five scrips with highest PCR on OI were Kotak Bank 12.36, Abirlanuvo 2.38, TCS 1.57, M&M 1.56 and Adani Ports 1.40.

Among most active underlying, NHPC witnessed an addition of 43.78 million of Open Interest in the March month futures contract followed by Unitech which witnessed contraction of 22.24 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed of contraction of 15.29 million in the March month futures. Also, Suzlon Energy witnessed contraction of 37.24 million in Open Interest in the March month contract. Finally, IFCI witnessed an addition of 25.49 million of Open Interest in the near month futures contract.