Nifty ends lower on profit-booking: realty, bank & auto stocks lead losses

CNX Nifty ended lower on Tuesday amid selling in all major indices except IT. Sentiments turned negative after brokerage firm Barclays Capital lowered India's growth forecast to 6% for 2013-14, from earlier projection of 6.2%. Sentiments further dampened on weak global trend ahead of the US Federal Reserve's meeting. On the global front, most of the Asian markets ended in red. Meanwhile, European markets also made negative opening on Tuesday.

Back home, Indian equity benchmark made a flat start amid weak global cues as the US markets ended on a lower note in previous session. In the first half, market traded in red in absence of any major global or domestic cues. Market continued trading in negative territory as investors remained cautious amid lack of triggers. In the late afternoon session, market entered the positive zone as sentiments got some respite after Barclays Capital in its report stated that it expects another 75 bps of rate cut over the rest of 2013 versus its previous call of 25 bps in easing due to slowing inflation and weakening economic growth.  However, market changed its position again and slipped into negative territory on account of profit booking. Further, negative start of European markets also turned down the investors’ sentiments. Selling was witnessed in all major indices except IT. Finally, Nifty ended the session with a loss of 42 points. 

Meanwhile, sectoral indices on the NSE made a negative closing except IT. CNX Realty down 2.35%, CNX Auto down 1.52%, CNX PSU Bank down 1.42%, CNX Infra down 1.38% and CNX Energy down 1.18% remained the top losers in the trade. While, CNX IT up by 0.98% remained the only gainer in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 0.96% and reached 17.88.

The India VIX witnessed an addition of 0.96% at 17.88 as compared to its previous close of at 17.71 on Monday. The 50-share CNX Nifty lost 42.80 points or 0.70% to settle at 6,114.10.

Nifty May 2013 futures closed at 6116.90 on Tuesday at a premium of 2.80 points over spot closing of 6114.10, while Nifty June 2013 futures ended at 6127.30, at a premium of 13.20 points over spot closing. Nifty May futures saw an addition of 0.19 million (mn) units taking the total outstanding open interest (OI) to 25.95 mn units. The near month May 2013 derivatives contract will expire on May 30, 2013.

From the most active contracts, JP Associates May 2013 futures were trading at a premium of 0.35 points at 77.15 compared with spot closing of 76.80. The number of contracts traded was 11,916.

BHEL May 2013 futures were trading at a premium of 0.10 points at 205.60 compared with spot closing of 205.50. The number of contracts traded was 13,796.

DLF May 2013 futures were trading at a premium of 0.50 points at 241.00 compared with spot closing of 240.50. The number of contracts traded was 12,428.

Tata Motors May 2013 futures were at a premium of 1.15 points at 294.25 compared with spot closing of 293.10. The number of contracts traded was 13,212. 

Reliance Industries May 2013 futures were at a premium of 3.45 points at 829.75 compared with spot closing of 826.30. The number of contracts traded was 14,654.

Among Nifty calls, 6,200 SP from the May month expiry was the most active call with an addition of 0.22 million open interest.

Among Nifty puts, 6,000 SP from the May month expiry was the most active put with contraction of 0.03 million open interest.

The maximum OI outstanding for Calls was at 6,200 SP (7.36 mn) and that for Puts was at 6,000 SP (7.68 mn).

The respective Support and Resistance levels are: Resistance 6162.12 -- Pivot Point 6132.23 -- Support 6084.22.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.35 for May-month contract.

The top five scrips with highest PCR on OI were Kotak Bank 1.86, Siemens 1.47, Hero Moto Co 1.46 , Axis Bank 1.37, HUL 1.35.

Among most active underlying, Unitech witnessed contraction of 2.96 million of Open Interest in the May month futures contract followed by Jaiprakash Associates which witnessed contraction of 1.95 million of Open Interest in the near month contract. Meanwhile, R com witnessed contraction of 0.98 million in the May month futures. Also, IFCI witnessed an addition of 0.24 million in Open Interest in the May month contract. Finally, R Power witnessed an addition of 0.77 million of Open Interest in the near month futures contract.