Nifty ends below crucial 6,000 level amid weak global cues

CNX Nifty ended lower for the fourth consecutive session on Thursday amid weak global cues after the US Federal Reserve hinted at scaling down monetary stimulus. Negative cues from Asian markets also added to the bearish sentiment. Sentiments further dented after State Bank of India (SBI) and Larsen & Toubro (L&T) reported disappointing fourth quarter earnings. On the global front, Asian markets ended in red. Meanwhile, European markets made a negative opening in the early deal on Thursday.

Back home, Indian equity benchmark made a negative start with tumbling below its crucial 6,050 levels on the back of weak global cues as the US markets suffered a sharp sell-off overnight. In the first half, market trade in red as investors’ sentiments got dampened on weak trend in Asian region. Most Asian markets ended the day with sharp losses after China's May HSBC flash PMI data shrank for the first time in seven months. Market extended losses and continued weak trade till the end, on account of persistent selling in front-line blue chip counters due to global sell-off in Asian and European market. Moreover, investors’ sentiments turned lower after State Bank of India (SBI), posted a worse-than-expected 19% fall in quarterly profit. Higher provisions against non-performing assets and marginal growth in other income dented the bank’s profit margin. Selling was witnessed in all major indices of the market. Finally, Nifty ended the session near its intra-day low level with a massive loss of 127 points.          

Meanwhile, sectoral indices on the NSE made a negative closing. CNX realty down 6.11%, CNX PSU Bank down 5.51%, CNX Infra down 4.73%, CNX Energy down 3.13% and CNX Finance down 2.19% remained the top losers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 5.70% and reached 18.73.

The India VIX witnessed an addition of 5.70 % at 18.73 as compared to its previous close of at 17.72 on Wednesday. The 50-share CNX Nifty lost 127.45 points or 2.09% to settle at 5,967.05.

Nifty May 2013 futures closed at 5966.10 on Thursday at a discount of 0.95 points over spot closing of 5967.05, while Nifty June 2013 futures ended at 5975.60, at a premium of 8.55 points over spot closing. Nifty May futures saw contraction of 1.65 million (mn) units taking the total outstanding open interest (OI) to 24.93 mn units. The near month May 2013 derivatives contract will expire on May 30, 2013.

From the most active contracts, Reliance Communications May 2013 futures were trading at a discount of 0.30 points at 106.35 compared with spot closing of 106.65. The number of contracts traded was 21,862.

DLF May 2013 futures were trading at a premium of 0.90 points at 211.55 compared with spot closing of 210.65. The number of contracts traded was 26,508.

Tata Steel May 2013 futures were trading at a discount of 1.10 points at 300.90 compared with spot closing of 302.00. The number of contracts traded was 21,661.

Reliance Industries May 2013 futures were at a premium of 3.70 points at 786.30 compared with spot closing of 782.60. The number of contracts traded was 16,905. 

Reliance Capital May 2013 futures were at a premium of 1.05 points at 337.55 compared with spot closing of 336.50. The number of contracts traded was 16,736.

Among Nifty calls, 6,100 SP from the May month expiry was the most active call with an addition of 0.91 million open interest.

Among Nifty puts, 5,900 SP from the May month expiry was the most active put with contraction of 1.02 million open interest.

The maximum OI outstanding for Calls was at 6,100 SP (6.95 mn) and that for Puts was at 5,900 SP (7.26mn).

The respective Support and Resistance levels are: Resistance 6047.1 -- Pivot Point 6001.4 -- Support 5921.35.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.16 for May-month contract.

The top five scrips with highest PCR on OI were Kotak Bank 1.80, Bharat Forg 1.49, Siemens 1.47, HUL 1.33 and HDFC 1.24.

Among most active underlying, Unitech witnessed contraction of 0.88 million of Open Interest in the May month futures contract followed by Jaiprakash Associates which witnessed an addition of 4.91 million of Open Interest in the near month contract. Meanwhile, R com witnessed an addition of 1.00 million in the May month futures. Also, IFCI witnessed contraction of 1.10 million in Open Interest in the May month contract. Finally, R Power witnessed contraction of 2.47 million of Open Interest in the near month futures contract.