Nifty ends below crucial 5,500 mark for first time since Sept’12

CNX Nifty, breaching the crucial 5,500 mark for the first time since September 2012, ended lower for the fifth straight session on Tuesday amid selling in all major indices except auto. Market sentiments remain concerned as foreign funds continue to be net sellers in Indian equities, having sold $30.03 million of equities on April 08. So far in the past five trading sessions, FIIs have sold equities worth Rs 1,107 crore. On the global front, Asian indices too shut shop mostly in green as inflation in the world’s second-largest economy eased more than forecast from a 10-month high. Meanwhile, most of the European counters traded firm in early session.

Back home, Indian equity benchmark made a positive start buoyed by firm global cues. Overnight, the US markets ended higher ahead of the January-March corporate earnings season. In the first half, market traded in green as the market-men got some support with the Asian Development Bank’s (ADB) outlook, which stated that domestic consumption could boost India’s slowing economy to 6 percent growth this year. Moreover, finance minister expressing his commitment to remove bottlenecks hampering their implementation, also supported the sentiments. However, in the late afternoon session, market pared its early gains and slipped into red on account of selling in frontline counters. Selling was witnessed in all major indices except auto. Finally, Nifty ended the session with a loss of 47 points.  

Meanwhile, sectoral indices on the NSE made a negative closing except auto. CNX PSU Bank down 2.10%, CNX FMCG down 1.53%, CNX Energy down 1.44%, CNX PSE down 1.38% and CNX Realty down 1.26% remained the top losers in the trade. While, CNX Auto up by 0.15% remained the gainers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 0.30% and reached 16.82.

The India VIX witnessed an addition of 0.30% at 16.82 as compared to its previous close of at 16.77 on Monday.

The 50-share CNX Nifty lost 47.85 points or 0.86% to settle at 5,495.10.

Nifty April 2013 futures closed at 5,500.85 on Tuesday at a premium of 5.75 points over spot closing of 5,495.10, while Nifty May 2013 futures ended at 5,519.45, at a premium of 24.35 points over spot closing. Nifty April futures saw an addition of 1.04 million (mn) units taking the total outstanding open interest (OI) to 18.24 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 1.20 points at 263.20 compared with spot closing of 262.00. The number of contracts traded was 13,699.

DLF April 2013 futures were trading at a premium of 0.15 points at 230.45 compared with spot closing of 230.30. The number of contracts traded was 16,541.

Reliance Industries April 2013 futures were trading at a premium of 0.10 points at 777.80 compared with spot closing of 777.70. The number of contracts traded was 16,336.

Reliance Capital April 2013 futures were at a premium of 0.85 points at 309.85 compared with spot closing of 309.00. The number of contracts traded was 11,621. 

ICICI Bank April 2013 futures were at a premium of 7.45 points at 992.35 compared with spot closing of 984.90. The number of contracts traded was 20,962.

Among Nifty calls, 5,700 SP from the April month expiry was the most active call with contraction of 0.19 million open interest.

Among Nifty puts, 5,600 SP from the April month expiry was the most active put with  an addition of 0.36 million open interest.

The maximum OI outstanding for Calls was at 5700 SP (8.52 mn) and that for Puts was at 5,600 SP (5.87 mn).

The respective Support and Resistance levels are: Resistance 5569.77 -- Pivot Point 5528.38 -- Support 5453.72.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.78 for April -month contract.

The top five scrips with highest PCR on OI were Aurobindo Pharma 1.68, HDFC Bank 1.55, Maruti 1.31, Sun Pharma 1.23 and Apollo Tyre 1.22.

Among most active underlying, JP Associates witnessed an addition of 0.16 million of Open Interest in the April month futures contract followed by Unitech which witnessed contration of 0.27million of Open Interest in the near month contract. Meanwhile, Shree Renuka Sugars witnessed an addition of 0.008 million in the April month futures. Also, IFCI witnessed contraction of 0.20 million in Open Interest in the April month contract. Finally, RCOM witnessed contraction of 1.04 million of Open Interest in the near month futures contract.