Nifty ends lower amid concerns over overseas fund outflows

CNX Nifty ended lower for the third consecutive session on Friday amid concerns that foreign investors would exit some of their holdings due to domestic and global uncertainties. Sentiments were also jittery over the continuing political instability in the country. On the global front, Asian markets shut shop mostly in red. Moreover, European counters traded in red in early deals as investors cautiously stayed on the sidelines ahead of the closely watched US nonfarm-payroll report.

Back home, Indian equity market made a cautious start amid weak global cues as slowing growth in China, US unemployment claims and the European Central Bank keeping interest rates unchanged were cited as reasons for the downward sentiment. Market extended its losses due to uncertainty amidst funds and retail investors over near term economic outlook. High sell-off by the FIIs also deteriorated the market’s sentiments as overseas investors sold shares worth net Rs 326 crore on April 4, 2013. However, in the late afternoon session, market pared some losses amid value buying by the investors in energy and auto stocks but weak trade of European counterparts again weighed on the sentiments. Selling was witnessed in FMCG, Realty and infra stocks. Finally, Nifty ended the session with a loss of 21 points.  

Meanwhile, sectoral indices on the NSE made a mixed closing. CNX FMCG down 1.49%, CNX Finance down 0.79%, CNX Infra down 0.67% and CNX Realty down 0.38% remained the top losers in the trade. While, CNX Energy up by 1.02%, CNX Auto up by 0.58%, CNX PSE up by 0.40% and CNX Pharma up by 0.20% remained the gainers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 1.96% and reached 16.16.

The April series options’ OIPCR stood at 0.78 indicating bearish sentiments in the markets, Put writers took home losses with market falling 5.08% in the week.

5500 April series Put Options added 56,600 shares whereas 5600 series Puts shed 655,800 shares in the open interest taking their tally to 5,413,350 and 6,385,350 respectively.

5600, 5700 and 5800 April series Call Options added 1,256,400, 1,024,900 and 917,400 shares in the open interest taking their tally to 5,111,100, 8,067,100 and 7,854,150 respectively.

The buildup of open interest at 5500 Puts indicates minor support levels at 5500 levels on the Nifty, whereas the 5700 levels would try to resist the markets to rise any further.

The India VIX witnessed an addition of 1.96% at 16.16 as compared to its previous close of at 15.85 on Thursday.

The 50-share CNX Nifty lost 21.50 points or 0.39% to settle at 5,553.25.

Nifty April 2013 futures closed at 5,572.05 on Friday at a premium of 18.80 points over spot closing of 5,553.25, while Nifty May 2013 futures ended at 5,594.50, at a premium of 41.25 points over spot closing. Nifty April futures saw an addition of 1.00 million (mn) units taking the total outstanding open interest (OI) to 16.64 mn units. The near month April 2013 derivatives contract will expire on April 25, 2013.

From the most active contracts, Tata Motors April 2013 futures were trading at a premium of 1.00 points at 256.80 compared with spot closing of 255.80. The number of contracts traded was 11,730.

DLF April 2013 futures were trading at a premium of 1.25 points at 234.15 compared with spot closing of 232.90. The number of contracts traded was 19,679.

Reliance Industries April 2013 futures were trading at a premium of 2.85 points at 782.00 compared with spot closing of 779.15. The number of contracts traded was 13,515.

United Spirits April 2013 futures were at a premium of 11.10 points at 1760.25 compared with spot closing of 1749.15. The number of contracts traded was 23,983. 

Reliance Capital April 2013 futures were at a premium of 1.65 points at 311.65 compared with spot closing of 310.00. The number of contracts traded was 12,906.

Among Nifty calls, 5,700 SP from the April month expiry was the most active call with an addition of 1.01 million open interest.

Among Nifty puts, 5,600 SP from the April month expiry was the most active put with contraction of 1.23 million open interest.

The maximum OI outstanding for Calls was at 5700 SP (8.05 mn) and that for Puts was at 5,600 SP (5.80 mn).

The respective Support and Resistance levels are: Resistance 5575.47 -- Pivot Point 5555.08 -- Support 5532.87.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.77 for April -month contract.

The top five scrips with highest PCR on OI were Aurobindo Pharma 1.57, Adani Ports 1.50, Wipro 1.49, Abirlanuvo 1.45 and HDFC Bank 1.42.

Among most active underlying, JP Associates witnessed contraction of 1.02 million of Open Interest in the April month futures contract followed by Unitech which witnessed an addition of 1.50 million of Open Interest in the near month contract. Meanwhile, Shree Renuka Sugars witnessed an addition of 0.72 million in the April month futures. Also, RCOM witnessed contraction of 0.14 million in Open Interest in the April month contract. Finally, Hindalco Industries witnessed an addition of 0.14 million of Open Interest in the near month futures contract.