Nifty ends below crucial 5,550 level amid global growth woes

CNX Nifty ended lower for the fourth straight day on Monday as investors’ sentiments remain subdued due to weak macro-economic situation coupled with global growth woes. Market sentiments also remain concerned over the foreign funds, which continued to exit local holdings. On the global front, Asian shares ended lower, as investors remained cautious over mounting tensions on the Korean peninsula and after a disappointing US jobs report. Meanwhile, most of the European markets made a positive start in the early deals on Monday.   

Back home, Indian equity benchmark, made a flat start amid weak global cues as concerns over the Korean peninsula weighed on sentiment, moreover, the US markets suffered decline in previous session on getting weaker monthly jobs data. In the first half, market traded in red on worries over economic and political uncertainty. High sell-off by the FIIs also deteriorated the market’s sentiments as overseas investors sold shares for three straight days after buying over $10 billion so far this year. Market continued weak trade in the second half too, on account of sustained selling. Investors’ sentiments also turned down on expectations that the central bank will not change its key policy rates in the next monitory policy. Selling was witnessed in PSU bank, media and IT stocks. However, losses remain capped on account of some buying in frontline counters and taking cues from European counterparts. Finally, Nifty ended the session with a loss of 10 points.

Meanwhile, sectoral indices on the NSE made a mixed closing. CNX PSU Bank down 1.57%, CNX Media down 1.39%, CNX IT down 1.00%, CNX Finance down 0.77% and CNX Metal down 0.63% remained the top losers in the trade. While, CNX Pharma up by 0.87%, CNX FMCG up by 0.80%, CNX Infra up by 0.44%, CNX Auto up by 0.43% and CNX PSE up by 0.37% remained the gainers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 3.77% and reached 16.77.

The India VIX witnessed an addition of 3.77% at 16.77 as compared to its previous close of at 16.16 on Friday.

The 50-share CNX Nifty lost 10.30 points or 0.19% to settle at 5,542.95.

Nifty April 2013 futures closed at 5,559.00 on Monday at a premium of 16.05 points over spot closing of 5,542.95, while Nifty May 2013 futures ended at 5,578.30, at a premium of 35.35 points over spot closing. Nifty April futures saw an addition of 0.54 million (mn) units taking the total outstanding open interest (OI) to 17.19 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 0.30 points at 66.30 compared with spot closing of 66.00. The number of contracts traded was 11,197.

BHEL April 2013 futures were trading at a premium of 0.10 points at 182.75 compared with spot closing of 182.65. The number of contracts traded was 13,477.

DLF April 2013 futures were trading at a premium of 0.20 points at 234.40 compared with spot closing of 234.20. The number of contracts traded was 9,777.

Reliance Industries April 2013 futures were at a premium of 1.40 points at 790.90 compared with spot closing of 789.50. The number of contracts traded was 10,705. 

ICICI Bank April 2013 futures were at a premium of 3.70 points at 993.85 compared with spot closing of 990.15. The number of contracts traded was 10,962. 

Among Nifty calls, 5,700 SP from the April month expiry was the most active call with an addition of 0.66 million open interest.

Among Nifty puts, 5,500 SP from the April month expiry was the most active put with  an addition of 0.31 million open interest.

The maximum OI outstanding for Calls was at 5700 SP (8.71 mn) and that for Puts was at 5,500 SP (5.67 mn).

The respective Support and Resistance levels are: Resistance 5562.42 -- Pivot Point 5549.73 -- Support 5530.27.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.73 for April -month contract.

The top five scrips with highest PCR on OI were Aurobindo Pharma 1.71, HDFC Bank 1.50, Apollo Tyre 1.22, India Cements 1.22 and DR Reddy 1.21.

Among most active underlying, JP Associates witnessed contraction of 1.29 million of Open Interest in the April month futures contract followed by Unitech which witnessed an addition of 1.03 million of Open Interest in the near month contract. Meanwhile, Shree Renuka Sugars witnessed contraction of 0.69 million in the April month futures. Also, RCOM witnessed an addition of 1.46 million in Open Interest in the April month contract. Finally, Hindalco Industries witnessed contraction of 0.35 million of Open Interest in the near month futures contract.