Nifty ends marginally lower ahead of Jan IIP data

CNX Nifty snapped a four-session gaining streak and ended marginally lower on Monday, amid a range-bound trading session, after investors booked profits in index heavyweights ahead of the January IIP data. On the global front, Asian counters shut shop on mixed note. Meanwhile, European shares were trading lower on concerns over downgrade of Italy's sovereign rating and some discouraging economic data from China over the weekend.

Back home, Indian equity benchmark made a positive start with surpassing its crucial 5,950 level buoyed by sanguine global cues as the US markets extended their gains on the final day of the week on getting better than expected jobs data. In the first half, market traded in green, but gains remain capped as investors opted to stay sideways ahead of number of economic events, like industrial production data for January and RBI’s monetary policy. Market continued its range-bound trade in the second half too. However, sentiments got boost on improved trade data for February 2013 as country’s exports rose by 4.25% from a year earlier to $26.3 billion. While, buying in realty, pharma and infra stocks were offset by selling in IT, media and metal stocks, leading the market to close near the neutral line. Finally, Nifty ended the session with a marginal loss.  

Meanwhile, sectoral indices on the NSE made a negative closing. CNX Realty up by 1.43%, CNX Pharma up by 0.47%, CNX Infra up by 0.40% and CNX PSU Bank up by 0.35% remained the top gainers in the trade. While, CNX IT down 0.71%, CNX Metal down 0.54%, CNX Media down 0.50%, CNX Auto down 0.49% and CNX PSE down 15% remained the loser in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 6.82% and reached 14.25.

The India VIX witnessed an addition of 6.82% at 14.25 as compared to its previous close of at 13.34 on Friday.

The 50-share CNX Nifty lost 3.35 points or 0.06% to settle at 5,942.35.

Nifty March 2013 futures closed at 5,957.40 on Monday at a premium of 15.05 points over spot closing of 5,942.35, while Nifty April 2013 futures ended at 5,988.60, at a premium of 46.25 points over spot closing. Nifty March futures saw an addition of 0.10 million (mn) units taking the total outstanding open interest (OI) to 16.64 mn units. The near month March 2013 derivatives contract will expire on March 28, 2013.

From the most active contracts, JP Associates March 2013 futures were trading at a premium of 0.55 points at 77.75 compared with spot closing of 77.20. The number of contracts traded was 9,366.

Tata Motors March 2013 futures were trading at a premium of 1.65 points at 303.05 compared with spot closing of 301.40. The number of contracts traded was 8,056.

Tata Steel March 2013 futures were trading at a premium of 1.85 points at 360.55 compared with spot closing of 358.70. The number of contracts traded was 8,630.

DLF March 2013 futures were at a premium of 0.95 points at 286.65 compared with spot closing of 285.70. The number of contracts traded was 20,844.

United Spirits March 2013 futures were at a premium of 5.65 points at 1954.85 compared with spot closing of 1949.20. The number of contracts traded was 9,256.

Among Nifty calls, 6,100 SP from the March month expiry was the most active call with an addition of 0.53 million open interest.

Among Nifty puts, 5,700 SP from the March month expiry was the most active put with an addition of 1.51 million open interest.

The maximum OI outstanding for Calls was at 6100 SP (6.13 mn) and that for Puts was at 5,700 SP (10.98mn).

The respective Support and Resistance levels are: Resistance 5965.58-- Pivot Point 5947.97-- Support 5924.73.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.49 for March -month contract.

The top five scrips with highest PCR on OI were Colpal 4.00, HDFC Bank 3.03, Kotak Bank 2.48, Divislab 2.38 and TCS 1.96.

Among most active underlying, NHPC witnessed contraction of 2.37 million of Open Interest in the March month futures contract followed by Unitech which witnessed an addition of 0.43 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed of contraction of 1.03 million in the March month futures. Also, IFCI witnessed an addition of 0.12 million in Open Interest in the March month contract. Finally, Rcom witnessed an addition of 0.64 million of Open Interest in the near month futures contract.