Nifty snaps 4-days gaining streak; closed below crucial 5,900 level

CNX Nifty snapped its four-days winning streak and ended the first day of the new series in the red on Friday due to back of profit-booking in rate-sensitive sectors. On global front, Asian markets ended mixed, while the European markets opened in the negative terrain as disappointing earnings propelled investors to book profits after five straight sessions of gains.

Back home, Indian equity benchmarks started the new F&O series on a negative note as investors booked profits in rate-sensitive sectors after four consecutive sessions of gains. In the first half, market traded in negative territory as investors’ sentiments remained subdued and opted to remain on the side-lines ahead of the Reserve Bank of India’s monetary policy meet on May 3. Market extended its early losses and continued weak trade in the second half too on account of selling in frontline counters and taking cues from subdued European markets. Selling was witnessed in realty, PSU bank, metal and energy stocks. Finally, Nifty ended the session with the loss of 44 points.     

Meanwhile, most of the sectoral indices on the NSE made a negative closing. CNX Realty down 2.28%, CNX PSU Bank down 2.18%, CNX Energy down 1.55%, CNX Metal down 1.48% and CNX IT down 1.44% remained the top losers in the trade. While, CNX Auto up by 0.72% and CNX Infra up by 0.59% remained the gainers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 2.25% and reached 13.88.

The India VIX witnessed contraction of 2.25% at 13.88 as compared to its previous close of at 14.20 on Tuesday.

The 50-share CNX Nifty lost 44.85 points or 0.76% to settle at 5,871.45.

Nifty May 2013 futures closed at 5887.75 on Friday at a premium of 16.30 points over spot closing of 5,871.45, while Nifty June 2013 futures ended at 5897.50, at a discount of 26.05 points over spot closing. Nifty May futures saw an addition of 0.79 million (mn) units taking the total outstanding open interest (OI) to 15.81 mn units. The near month May 2013 derivatives contract will expire on May 30, 2013.

From the most active contracts, R Com May 2013 futures were trading flat at 93.65 compared with spot closing of 93.65. The number of contracts traded was 11,279.

DLF May 2013 futures were trading at a discount of 0.65 points at 237.85 compared with spot closing of 238.50. The number of contracts traded was 14,937.

LIC Housing Finance May 2013 futures were trading at a discount of 1.91 points at 248.9 compared with spot closing of 250.00. The number of contracts traded was 18,074.

Reliance Industries May 2013 futures were at a discount of 3.70 points at 790 compared with spot closing of 793.70. The number of contracts traded was 20,057. 

United Spirits May 2013 futures were at a premium of 14.15 points at 2061.8 compared with spot closing of 2,047.65. The number of contracts traded was 13,701.

Among Nifty calls, 5,900 SP from the May month expiry was the most active call with an addition of 0.42 million open interest.

Among Nifty puts, 5,800 SP from the May month expiry was the most active put with an addition of 0.24 million open interest.

The maximum OI outstanding for Calls was at 5,900 SP (4.58 mn) and that for Puts was at 5,800 SP (5.10 mn).

The respective Support and Resistance levels are: Resistance 5898.83 -- Pivot Point 5879.67 -- Support 5852.28.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.15 for May -month contract.

The top five scrips with highest PCR on OI were Ultra Cement 2.43, Siemens 2.07, Tata Chemical 1.83, Axis Bank 1.54 and Hero Moto Co 1.51.

Among most active underlying, IFCI witnessed contraction of 0.26 million of Open Interest in the May month futures contract followed by Unitech which witnessed contraction of 3.44 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed an addition of 3.98 million in the May month futures. Also, RCOM witnessed contraction of 0.32 million in Open Interest in the May month contract. Finally, R Power witnessed contraction of 0.05 million of Open Interest in the near month futures contract.