Nifty ends lower amid volatile trading session

CNX Nifty ended lower for the sixth straight session on Friday amid a volatile trading session dragged by realty and IT stocks. Market have been under pressure after the Reserve Bank stuck to its cautious stance on future rate cuts and the DMK pulling out of the UPA government, creating political uncertainty. On the global front, subdued opening of European markets in early trade too dampened the sentiments. Key European indices were on track for their worst weekly drop since November, as worries over Cyprus’ bailout problems dented sentiment. Moreover, most of the Asian counters shut shop in the negative terrain.

Back home, Indian equity benchmark made a flat start as investors remained anxious in absence of any positive fundamental trigger. Global cues too remained unsupportive as the US markets once again slipped into cautious mood and major indices ended lower by half to one percent overnight. In the first half, market witnessed volatile trade in red near the neutral line. Continued worries over country’s political stability combined with looming concerns over possible debt default by Cyprus, sapped the risk appetite of investors. Investors’ sentiments were also weighted down after Commerce and Industry Minister Anand Sharma said that the country’s exports may not be able to reach even the last year’s level of about $306 billion, and the trade deficit is likely to widen between $193-196 billion in the current fiscal. Market continued volatile trade in red in second half too, on account of selling in frontline counters and taking cues from European counterparts. However, the market’s losses remain capped as the selling in realty, IT and pharma stocks was offset by buying in media and metal stocks. Finally, Nifty ended the session with a minor loss of 7 points.  

Meanwhile, sectoral indices on the NSE made a mixed closing. CNX Realty down 1.54%, CNX IT down 0.67%, CNX Pharma down 0.51% and CNX PSE down 0.40% remained the top losers in the trade. While, CNX Media up by 1.67%, CNX PSU Bank up by 0.24%, CNX Metal up by 0.17% and CNX Auto up by 0.04% remained the gainers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 5.88% and reached 15.54.

The India VIX witnessed contraction of 5.88% at 15.54 as compared to its previous close of at 16.51 on Thursday.

The 50-share CNX Nifty lost 7.40 points or 0.13% to settle at 5,651.35.

Nifty March 2013 futures closed at 5,668.40 on Friday at a premium of 17.05 points over spot closing of 5,651.35, while Nifty April 2013 futures ended at 5,706.60, at a premium of 55.25 points over spot closing. Nifty March futures saw contraction of 0.98 million (mn) units taking the total outstanding open interest (OI) to 13.48 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 0.50 points at 63.70 compared with spot closing of 63.20. The number of contracts traded was 19,044.

BHEL March 2013 futures were trading at a premium of 0.40 points at 180.70 compared with spot closing of 180.30. The number of contracts traded was 13,496.

Tata Motors March 2013 futures were trading at a premium of 1.00 points at 271.00 compared with spot closing of 270.00. The number of contracts traded was 17,130.

DLF March 2013 futures were at a premium of 0.15 points at 232.00 compared with spot closing of 231.85. The number of contracts traded was 23,214. 

Reliance Industries March 2013 futures were at a premium of 2.25 points at 813.20 compared with spot closing of 810.95. The number of contracts traded was 15,677.

Among Nifty calls, 6,000 SP from the March month expiry was the most active call with contraction of 0.60 million open interest.

Among Nifty puts, 5,600 SP from the March month expiry was the most active put with an addition of 0.83 million open interest.

The maximum OI outstanding for Calls was at 6000 SP (8.97 mn) and that for Puts was at 5,600 SP (7.86 mn).

The respective Support and Resistance levels are: Resistance 5684.6 -- Pivot Point 5658.2-- Support 5624.95.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.79 for March -month contract.

The top five scrips with highest PCR on OI were Sun Pharma 1.91, Asian Paint1.84, TCS 1.74, ITC 1.81 and Divislab 1.43.

Among most active underlying, NHPC witnessed contraction of 3.93 million of Open Interest in the March month futures contract followed by Jaiprakash Associates which witnessed contraction of 0.76 million of Open Interest in the near month contract. Meanwhile, Unitech witnessed of contraction of 8.11 million in the March month futures. Also, IFCI witnessed contraction of4.32 million in Open Interest in the March month contract. Finally, RCOM witnessed a contraction of 0.60 million of Open Interest in the near month futures contract.