Nifty ends below crucial 5,700 level; realty, auto major draggers

CNX Nifty, snapping the four-day winning streak, ended lower on Wednesday as the market plunged deep into the red in the last hour of trading with the Nifty breaking below 5,700 mark on heavy sell-off amid political uncertainty that Lok Sabha elections could be held earlier than scheduled, even this year. On the global front, Asian markets closed mixed, while, most of the European markets made the negative start as investors turned cautious before this week's policy decisions by the Bank of Japan and European Central Bank, along with the monthly US jobs data. 

Back home, Indian equity benchmark made a negative start as investors opted to book their profit garnered in last few sessions. Market continued its negative trade on account of sustained selling pressure by funds and speculators. Sentiments were further deterred after growth in India's services sector eased last month to its slowest pace in 17 months to 51.4 from 54.2 in February as order books filled at a slower pace. However, the losses remain capped by encouraging statement of country’s Prime Minister, Manmohan Singh, who said that India’s growth slump is temporary in nature and 8 percent growth could be achieved again. However, in the last leg of trade, market witnessed heavy sell-off in all major indices despite pharma on growing political uncertainty. Finally, Nifty ended the session with a loss of massive 75 points.

Meanwhile, all of the sectoral indices on the NSE made a negative closing despite pharma. CNX Realty down 2.86%, CNX Auto down 2.36%, CNX PSU Bank down 2.31%, CNX Metal down 2.05% and CNX Infra down 1.68% remained the top losers in the trade. While, CNX Pharma up by 0.21% remained the only gainer in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 5.46% and reached 14.87.

The India VIX witnessed an addition of 5.46% at 14.87 as compared to its previous close of at 14.10 on Tuesday.

The 50-share CNX Nifty lost 75.20 points or 1.31% to settle at 5,672.90.

Nifty April 2013 futures closed at 5,688.10 on Wednesday at a premium of 15.20 points over spot closing of 5,672.90, while Nifty May 2013 futures ended at 5,710.60, at a premium of 37.70 points over spot closing. Nifty April futures saw an addition of 1.28 million (mn) units taking the total outstanding open interest (OI) to 14.48 mn units. The near month April 2013 derivatives contract will expire on April 25, 2013.

From the most active contracts, Reliance Communications April 2013 futures were trading at a premium of 0.20 points at 64.75 compared with spot closing of 64.55. The number of contracts traded was 22,314.

Tata Motors April 2013 futures were trading at a premium of 1.15 points at 258.65 compared with spot closing of 257.50. The number of contracts traded was 13,455.

Tata Steel April 2013 futures were trading at a premium of 1.70 points at 318.10 compared with spot closing of 316.40. The number of contracts traded was 11,949.

DLF April 2013 futures were at a premium of 1.20 points at 246.20 compared with spot closing of 245.00. The number of contracts traded was 18,319. 

Reliance Industries April 2013 futures were at a premium of 3.40 points at 778.90 compared with spot closing of 775.50. The number of contracts traded was 16,547.

Among Nifty calls, 5,900 SP from the April month expiry was the most active call with an addition of 0.54 million open interest.

Among Nifty puts, 5,600 SP from the April month expiry was the most active put with an addition of 0.12 million open interest.

The maximum OI outstanding for Calls was at 5900 SP (5.72 mn) and that for Puts was at 5,600 SP (8.38 mn).

The respective Support and Resistance levels are: Resistance 5728.53 -- Pivot Point 5689.32 -- Support 5633.68.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.05 for April -month contract.

The top five scrips with highest PCR on OI were Apollo Tyre 1.60, Tata Communications 1.30, Kotak Bank 1.27, Ultratech Cement 1.20 and Aurobindo Pharma 1.19.

Among most active underlying, JP Associates witnessed contraction of 0.16 million of Open Interest in the April month futures contract followed by IFCI which witnessed contraction of 0.60 million of Open Interest in the near month contract. Meanwhile, Unitech witnessed contraction of 0.92 million in the April month futures. Also, RCOM witnessed contraction of 7.82 million in Open Interest in the April month contract. Finally, Hindalco Industries witnessed an addition of 1.00 million of Open Interest in the near month futures contract.