Nifty ends lower; banking, realty decline

CNX Nifty snapping a three-day winning streak closed on flat-to-negative note on Wednesday weighed down by banking and realty shares. Investors also remained on cautiousness mood ahead of quarterly economic growth data and the expiry of May derivative contracts later this week. On the global front, Asian markets ended higher on the back of strong US economic data. Meanwhile, European markets made a negative start on Wednesday.

Back home, Indian equity benchmark made a negative start and continued trading in red through the day on the back of selling in selective blue-chip stocks. The fall in rupee value against the dollar also dented the investors’ sentiments. Market continued its weak trade in the second half too, mainly weighed down by software and financial shares together with weak global cues. However, the market’s losses remain capped as selling witnessed in realty, banking and finance stocks were offset by buying in defensive stocks such as pharma and FMCG, which led the market to close near neutral line with a marginal loss of 6 points.  

Meanwhile, sectoral indices on the NSE made a mixed closing. CNX Realty down 2.63%, CNX PSU Bank down 1.43%, CNX Metal down 0.88% and CNX Infra down 0.76% remained the top losers in the trade. While, CNX Pharma up by 2.35%, CNX FMCG up by 0.71%, CNX Auto up by 0.34% and CNX PSE up by 0.08% remained the gainers in the trade. While, the India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 4.32% and reached 17.86.

The India VIX witnessed addition of 4.32% at 17.86 as compared to its previous close of at 17.12 on Tues day. The 50-share CNX Nifty lost 6.95 points or 0.11% to settle at 6,104.30.

Nifty May 2013 futures closed at 6090.25 on Wednesday at a discount of 14.05 points over spot closing of 6104.30, while Nifty June 2013 futures ended at 6110.40, at a premium of 6.10 points over spot closing. Nifty May futures saw contraction of 2.40 million (mn) units taking the total outstanding open interest (OI) to 15.96 mn units. The near month May 2013 derivatives contract will expire on May 30, 2013.

From the most active contracts, Tata Motors June 2013 futures were trading at a premium of 1.35 points at 305.35 compared with spot closing of 304.00. The number of contracts traded was 15,537.

DLF May 2013 futures were trading at a premium of 1.15 points at 210.55 compared with spot closing of 209.40. The number of contracts traded was 16,731.

Tata Motors May 2013 futures were trading at a discount of 0.45 points at 303.55 compared with spot closing of 304.00. The number of contracts traded was 24,463.

Reliance Industries June 2013 futures were at a premium of 5.70 points at 852.75 compared with spot closing of 847.05. The number of contracts traded was 17,030. 

United Spirits June 2013 futures were at a premium of 30.25 points at 2481.40 compared with spot closing of 2451.15. The number of contracts traded was 16,339.

Among Nifty calls, 6,200 SP from the May month expiry was the most active call with an addition of 8.09 million open interest.

Among Nifty puts, 5,900 SP from the May month expiry was the most active put with an addition of 0.40 million open interest.

The maximum OI outstanding for Calls was at 6,200 SP (7.17 mn) and that for Puts was at 5,900 SP (7.74 mn).

The respective Support and Resistance levels are: Resistance 6129.63-- Pivot Point 6099.72-- Support 6074.38.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.41 for May-month contract.

The top five scrips with highest PCR on OI were Bharat Forge 1.89, Kotak Bank 1.68, Hero MotoCorp 1.57, Siemens 1.36 and HDFC Bank 1.29.

Among most active underlying, Unitech witnessed contraction of 8.33 million of Open Interest in the May month futures contract followed by JP Associates which witnessed contraction of 13.33 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed contraction of 6.41 million in the May month futures. Also, Reliance Power witnessed contraction of 6.34 million in Open Interest in the May month contract. Finally, DLF witnessed contraction of 3.24 million of Open Interest in the near month futures contract.