Nifty ends lower amid weak global cues

CNX Nifty pared early gains to end lower for the fifth straight day on Thursday amid weak European cues. On the global front, European markets opened lower as investors, already jittery over Cyprus’ debt crisis, were confronted with data showing Germany’s business activity lost steam in March. Meanwhile, Asian markets after trading firmly for most part of the day ended mixed.

Back home, Indian equity benchmark made a flat-to-positive start. Market traded in positive territory in the first half as investors’ sentiments got some boost on the report that foreign direct investment (FDI) in India, after declining for two months in a row, grew by 8 percent year-on-year to $2.15 billion in January. Some strength also came in after ratings agency CARE pegged India’s FY14 GDP growth at 6 percent and said that the expansion over the current fiscal will also boost bank credit. However, in the second half, market pared its early gains and slipped into negative territory on the back of profit booking in frontline counters and taking cues from European counterparts. Selling was witnessed in realty, auto, banking and media stocks. Market extended losses till the end of session and closed near its intra-day level with a loss of 35 points.    

Meanwhile, most of the sectoral indices on the NSE made a negative closing. CNX Realty down 3.27%, CNX Auto down 2.06%, CNX Media down 1.91% and CNX PSU Bank down 1.83% remained the top losers in the trade. While, CNX Finance up by 0.35% and CNX IT up by 0.14% remained the gainers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 0.90% and reached 16.51.

The India VIX witnessed contraction of 0.90 % at 16.51 as compared to its previous close of at 16.66 on Wednesday.

The 50-share CNX Nifty lost 0.63 points or 35.65% to settle at 5,658.75.

Nifty March 2013 futures closed at 5,664.45 on Thursday at a premium of 5.70 points over spot closing of 5,658.75, while Nifty April 2013 futures ended at 5,701.90, at a premium of 43.15 points over spot closing. Nifty March futures saw contraction of 0.60 million (mn) units taking the total outstanding open interest (OI) to 14.46 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 0.25 points at 64.20 compared with spot closing of 63.95. The number of contracts traded was 19,493.

Tata Motors March 2013 futures were trading at a premium of 0.40 points at 273.95 compared with spot closing of 273.55. The number of contracts traded was 22,084.

DLF March 2013 futures were trading at a premium of 2.20 points at 240.40 compared with spot closing of 238.20. The number of contracts traded was 26,357.

Reliance Industries March 2013 futures were at a premium of 5.30 points at 811.30 compared with spot closing of 806.00. The number of contracts traded was 23,359. 

ICICI Bank March 2013 futures were at a premium of 3.20 points at 1035.50 compared with spot closing of 1032.30. The number of contracts traded was 36,283.

Among Nifty calls, 6,000 SP from the March month expiry was the most active call with contraction of 0.36million open interest.

Among Nifty puts, 5,700 SP from the March month expiry was the most active put with contraction of 0.21 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (9.57 mn) and that for Puts was at 5,700 SP (8.13 mn).

The respective Support and Resistance levels are: Resistance 5728.35-- Pivot Point 5688.15-- Support 5618.55.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.80 for March -month contract.

The top five scrips with highest PCR on OI were Divis Lab 2.22, TCS 1.80, Sun Pharma 1.79 Asian Paints 1.74, and ITC 1.81,

Among most active underlying, JP Associates witnessed contraction of 0.02 million of Open Interest in the March month futures contract followed by Unitech which witnessed contraction of 0.66 million of Open Interest in the near month contract. Meanwhile, IFCI witnessed of contraction of 2.43 million in the March month futures. Also, RCOM witnessed contraction of4.62 million in Open Interest in the March month contract. Finally, Hindalco witnessed a contraction of 2.59 million of Open Interest in the near month futures contract.