Nifty ends below crucial 5,600 level amid continued political uncertainty

CNX Nifty ended lower for second-straight trading session on Thursday as the market coming under huge selling pressure, slipped below 5,600 mark amid FII sell-off and weak global cues. The foreign institutional investors (FII) sold shares worth a net Rs 368.39 crore on April 03, 2013. Sentiments were also jittery over the prevailing political instability in the country. On the global front, Asian markets ended mixed as investors stayed sidelines watching the developments in the Korean Peninsula. Meanwhile, European stocks were unchanged, following yesterday’s biggest drop in five weeks, as investors awaited an update on monetary policy from European Central Bank President Mario Draghi.

Back home, key domestic benchmark made a gap-down start amid weak global cues. The US markets once again ended lower overnight on getting disappointing economic data. Market continued its weak trade due to uncertainty amidst funds and retail investors over near term economic outlook. Sentiments remained cautious after capital market regulator SEBI voiced concerns over an alarming rise in grey market investments with thousands of crore being raised through illegal means. High sell-off by the FIIs on April 3, 2013 also deteriorated the market’s sentiments. In the late afternoon session, market extended its losses on account of selling in all major indices. Cement, technology and banks were among the big losers. Finally, Nifty ended the session near its intra-day low level with a loss of massive 98 points.

Meanwhile, all of the sectoral indices on the NSE made a negative closing. CNX Realty down 3.46%, CNX IT down 2.74%, CNX Media down 1.99%, CNX Infra down 1.97%, CNX Metal down 1.58% and CNX FMCG down 1.56% remained the top losers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 6.59% and reached 15.85.

The India VIX witnessed an addition of 6.59% at 15.85 as compared to its previous close of at 14.87 on Wednesday.

The 50-share CNX Nifty lost 98.15 points or 1.73% to settle at 5,574.75.

Nifty April 2013 futures closed at 5,593.20 on Thursday at a premium of 18.45 points over spot closing of 5,574.75, while Nifty May 2013 futures ended at 5,613.65, at a premium of 38.90 points over spot closing. Nifty April futures saw an addition of 1.15 million (mn) units taking the total outstanding open interest (OI) to 15.64 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 discount of 0.10 points at 62.90 compared with spot closing of 63.00. The number of contracts traded was 12,205.

Tata Motors April 2013 futures were trading at a premium of 0.80 points at 259.25 compared with spot closing of 258.45. The number of contracts traded was 14,286.

DLF April 2013 futures were trading at a premium of 1.00 points at 236.15 compared with spot closing of 235.15. The number of contracts traded was 17,146.

Reliance Industries April 2013 futures were at a premium of 0.50 points at 769.65 compared with spot closing of 769.15. The number of contracts traded was 15,341. 

Reliance Capital April 2013 futures were at a premium of 1.90 points at 311.90 compared with spot closing of 310.00. The number of contracts traded was 13,657.

Among Nifty calls, 5,700 SP from the April month expiry was the most active call with an addition of 2.14 million open interest.

Among Nifty puts, 5,600 SP from the April month expiry was the most active put with contraction of 1.34 million open interest.

The maximum OI outstanding for Calls was at 5700 SP (7.04 mn) and that for Puts was at 5,600 SP (7.04 mn).

The respective Support and Resistance levels are: Resistance 5624.25 -- Pivot Point 5594.95 -- Support 5545.45.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.88 for April -month contract.

The top five scrips with highest PCR on OI were Apollo Tyre 1.48, Aurobindo Pharma 1.25, HDFC Bank 1.19, HUL 1.17, Adani Ports 1.15.

Among most active underlying, JP Associates witnessed an addition of  4.12 million of Open Interest in the April month futures contract followed by IFCI which witnessed contraction of 0.89 million of Open Interest in the near month contract. Meanwhile, Unitech witnessed contraction of 1.29 million in the April month futures. Also, Shree Renuka Sugars witnessed an addition of 2.04 million in Open Interest in the April month contract. Finally, RCOM witnessed contraction of 1.86 million of Open Interest in the near month futures contract.