Nifty ends below crucial 6,100 level as L&T Q4 earnings disappoint

CNX Nifty ended lower for a third consecutive session on Wednesday after a range-bound session, weighed down by profit taking in Larsen & Toubro after the company reported disappointing fourth quarter earnings. On the global front, most of the Asian markets ended in green, while European markets made a negative start on Wednesday.

Back home, Indian equity benchmark made a positive start buoyed by firm global cues as the US market closed higher in the previous session. In the first half, market traded in positive territory as Investors’ sentiments were boosted by firm trend in global markets amid easing worries about near term economic growth. Market paired its early gains but continued trading in green amid buying in IT, FMCG and pharma stocks. However, in the late afternoon session, market slipped into negative territory on account of selling in front line blue chip counters and taking cues from negative opening of European market. Moreover, investors’ sentiments turned lower after Larsen and Toubro posted a worse-than-expected 6.9% fall in quarterly profit as interest costs jumped for India's biggest engineering and construction company. Selling was witnessed in realty, infra and banking stocks. Finally, Nifty ended the session with the loss of 19 points.

Meanwhile, most of the sectoral indices on the NSE made a negative closing. CNX realty down 3.62%, CNX Infra down 2.02%, CNX Media down 1.09%, CNX PSU Bank down 1.07% and CNX energy down 0.81% remained the top losers in the trade. While, CNX FMCG up by 0.95% and CNX Pharma up by 0.78% remained the gainers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 0.89% and reached 17.72.

The India VIX witnessed contraction of 0.89 % at 17.72 as compared to its previous close of at 17.88 on Tuesday. The 50-share CNX Nifty lost 19.60 points or 0.32% to settle at 6,094.50.

Nifty May 2013 futures closed at 6104.05 on Wednesday at a premium of 9.55 points over spot closing of 6094.50, while Nifty June 2013 futures ended at 6114.10, at a premium of 19.60 points over spot closing. Nifty May futures saw an addition of 0.62 million (mn) units taking the total outstanding open interest (OI) to 26.58 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 0.25 points at 73.80 compared with spot closing of 73.55. The number of contracts traded was 11,828.

DLF May 2013 futures were trading at a premium of 0.50 points at 227.10 compared with spot closing of 226.60. The number of contracts traded was 21,237.

Tata Motors May 2013 futures were trading at a premium of 0.35 points at 292.40 compared with spot closing of 292.05. The number of contracts traded was 11,839.

Tata Steel May 2013 futures were at a discount of 0.75 points at 306.15 compared with spot closing of 306.90. The number of contracts traded was 12,103. 

Reliance Industries May 2013 futures were at a premium of 1.35 points at 820.35 compared with spot closing of 819.00. The number of contracts traded was 14,124.

Among Nifty calls, 6,200 SP from the May month expiry was the most active call with an addition of 0.45 million open interest.

Among Nifty puts, 5,900 SP from the May month expiry was the most active put with an addition of 0.45 million open interest.

The maximum OI outstanding for Calls was at 6,200 SP (7.81 mn) and that for Puts was at 5,900 SP (8.29 mn).

The respective Support and Resistance levels are: Resistance 6136.58 -- Pivot Point 6105.52 -- Support 6063.43.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.33 for May-month contract.

The top five scrips with highest PCR on OI were Kotak Bank 1.88, Siemens 1.57, Bharat Forg 1.41, Axis Bank 1.37, HUL 1.35.

Among most active underlying, Unitech witnessed contraction of 0.58 million of Open Interest in the May month futures contract followed by Jaiprakash Associates which witnessed an addition  of 3.17 million of Open Interest in the near month contract. Meanwhile, R com witnessed an addition of 1.02 million in the May month futures. Also, IFCI witnessed contraction of 0.45 million in Open Interest in the May month contract. Finally, R Power witnessed contraction of 1.32 million of Open Interest in the near month futures contract.