Nifty ends lower amid weak global cues

CNX Nifty fell for a second consecutive session on Monday amid weak global cues, weighed down by profit booking in energy and PSE shares. On the global front, Asian markets ended in red after China's manufacturing output fell for the first time in seven months in May as both domestic and external demand softened, while, European markets also extended their downtrend on Monday amid concerns that the Federal Reserve will scale back its bond-buying programme and as a gauge of Chinese manufacturing fell.

Back home, Indian equity benchmark made a flat start, but soon fell as sentiments remained somber in early deals as FDI inflows registered 38 percent decline to $22.42 billion in 2012-13 compared to the previous year, despite many efforts of the government to boost the foreign investment. Global cues too remained gloomy as US markets suffered sharp cuts in the previous session. Market continued weak trade in absence of supportive cues and selling was witnessed in some blue chip stocks. In the second half, market extended its losses as investors’ sentiments turned down after the seasonally adjusted HSBC Purchasing Managers’ Index, a composite indicator of operating conditions in the manufacturing economy, shrinking for the first time in over four years, slowed down to 50.1 in May against its previous reading of 51.1 in April, registering its third monthly decline. Further, negative start of the European markets also added to pessimistic sentiments. Selling was witnessed in energy, PSE and finance stocks. Finally, Nifty ended the session with a loss of 46 points. 

Meanwhile, sectoral indices on the NSE made a mixed closing. CNX Energy down 1.92%, CNX PSE down 1.30%, CNX Finance down 1.06%, CNX Auto down 0.89% and CNX FMCG down 0.55% remained the top losers in the trade. While CNX Media up by 2.18%, CNX IT up by 1.23%, CNX PSU Bank up by 0.85% and CNX Metal up by 0.56% remained the gainers of the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 1.77% and reached 17.29.

The India VIX witnessed an addition of 1.77% at 17.29 as compared to its previous close of at 16.99 on Friday. The 50-share CNX Nifty lost 46.65 points or 0.78 % to settle at 5,939.30.

Nifty June 2013 futures closed at 5959.20 on Monday at a premium of 19.90 points over spot closing of 5939.30, while Nifty July 2013 futures ended at 5972.70, at a premium of 33.40 points over spot closing. Nifty June futures saw contraction of 1.36 million (mn) units taking the total outstanding open interest (OI) to 13.80 mn units. The near month June 2013 derivatives contract will expire on June 27, 2013.

From the most active contracts, Reliance Communications June 2013 futures were trading at a premium of 0.10 points at 110.85 compared with spot closing of 110.75. The number of contracts traded was 18,520.

Tata Motors June 2013 futures were trading at a premium of 1.20 points at 315.00 compared with spot closing of 313.80. The number of contracts traded was 12,291.

DLF June 2013 futures were trading at a premium of 0.20 points at 197.15 compared with spot closing of 196.95. The number of contracts traded was 16,844.

Reliance Industries June 2013 futures were at a premium of 6.05 points at 793.55 compared with spot closing of 787.50. The number of contracts traded was 12,584. 

Yes Bank June 2013 futures were at a premium of 2.55 points at 506.05 compared with spot closing of 503.50. The number of contracts traded was 9,926. 

Among Nifty calls, 6,200 SP from the June month expiry was the most active call with an addition of 1.18 million open interest.

Among Nifty puts, 5,900 SP from the June month expiry was the most active put with an addition  of 0.34 million open interest.

The maximum OI outstanding for Calls was at 6,200 SP (5.19 mn) and that for Puts was at 5,900 SP (5.31 mn).

The respective Support and Resistance levels are: Resistance 5994.75 -- Pivot Point 5955.55 -- Support 5900.1.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.04 for June -month contract.

The top five scrips with highest PCR on OI were CESC 1.70, Bharti Airtel1.68, PTC 1.43, Finan Tech 1.38 and Tata Chem 1.20.

Among most active underlying, Unitech witnessed contraction of 1.28 million of Open Interest in the June month futures contract followed by JP Associates which witnessed contraction of 0.18 million of Open Interest in the near month contract. Meanwhile, HDIL witnessed an addition of 1.83 million in the June month futures. Also, R Com witnessed an addition of 2.34 million in Open Interest in the June month contract. Finally, Reliance Power witnessed an addition of 0.15million of Open Interest in the near month futures contract.