CNX Nifty, snapping its two-day upward movement, closed flat on Wednesday, weighed down by selling in energy and IT stocks. On the global front, Asian counters shut shop mostly in green with Japanese Nikkei surging by over a percent as the yen weakened after the IMF raised the growth forecast for Japan. Meanwhile, European markets made a negative start in early deals on Wednesday.
Back home, the market made a positive start on the back of supportive global cues. The US markets made a considerable rebound on Tuesday after the plunge in the previous session on the back of some upbeat earnings and economic data. In the first half, market traded in positive territory as sentiments got some support from the International Monetary Fund (IMF) report saying that India with its favorable interest rate-growth differential has an advantage in addressing deficit concerns this year. Further, hopes that central bank will cut the key interest rates with a recent fall in inflation, supported gains in rate sensitive sectors. In the second half, market pared all its early gains on account of selling in energy and IT stocks. However, the selling was offset by buying in PSU bank, FMCG and auto stocks, which led the market to close on a flat note.
Meanwhile, the sectoral indices on the NSE made a mixed closing. CNX PSU Bank and Auto both up by 1.25%, CNX Pharma up by 0.91% and CNX Metal up by 0.85% remained the top gainers in the trade. While, CNX Energy down 1.97%, CNX IT down 1.04%, CNX PSE down 0.43% and CNX Infra down 0.33% remained the losers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 0.68% and reached 16.36.
The India VIX witnessed an addition of 0.68% at 16.36 as compared to its previous close of at 16.25 on Tuesday.
The 50-share CNX Nifty gained 0.25 points to settle at 5,688.70.Nifty April 2013 futures closed at 5,694.20 on Wednesday at a premium of 5.50 points over spot closing of 5,688.70, while Nifty May 2013 futures ended at 5,711.25, at a premium of 22.55 points over spot closing. Nifty April futures saw contraction of 0.81 million (mn) units taking the total outstanding open interest (OI) to 19.00 mn units. The near month April 2013 derivatives contract will expire on April 25, 2013.
From the most active contracts, DLF April 2013 futures were trading at a premium of 0.20 points at 243.10 compared with spot closing of 242.90. The number of contracts traded was 18,027.
ICICI Bank April 2013 futures were trading at a premium of 2.20 points at 1096.20 compared with spot closing of 1094.00. The number of contracts traded was 22,940.
Yes Bank April 2013 futures were trading at a discount of 0.20 points at 480.90 compared with spot closing of 481.10. The number of contracts traded was 20,785.
Reliance Industries April 2013 futures were at a discount of 3.25 points at 774.80 compared with spot closing of 778.05. The number of contracts traded was 38,572.
Reliance Infrastructure April 2013 futures were at a discount of 0.90 points at 357.10 compared with spot closing of 358.00. The number of contracts traded was 14,874.
Among Nifty calls, 5,700 SP from the April month expiry was the most active call with an addition of 0.50 million open interest.
Among Nifty puts, 5,600 SP from the April month expiry was the most active put with an addition of 1.49 million open interest.
The maximum OI outstanding for Calls was at 5700 SP (7.86 mn) and that for Puts was at 5,600 SP (10.20 mn).
The respective Support and Resistance levels are: Resistance 5724.23 -- Pivot Point 5696.62 -- Support 5661.08.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.10 for April -month contract.
The top five scrips with highest PCR on OI were Auro Pharma 2.06, Col Pal 2.00, Maruti 1.78, Sun Pharma 1.68 and Bharti Airtel 1.57.
Among most active underlying, JP Associates witnessed an addition of 0.29 million of Open Interest in the April month futures contract followed by Jaiprakash Associates which witnessed addition of 0.75 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed an addition of 0.96 million in the April month futures. Also, IFCI witnessed contraction of 1.68 million in Open Interest in the April month contract. Finally, R power Industries witnessed contraction of 0.97 million of Open Interest in the near month futures contract.
