Nifty ends lower; realty, banking stocks weigh

CNX Nifty ended lower for the third straight day on Tuesday weighed down by profit booking in rate sensitive stocks such as auto and banking amid diminishing hopes of further rate cut by the central bank. On the global front, most of Asian market ended in green, while European markets made a positive opening in the early deals on Tuesday after disappointing ISM manufacturing figures in the US reined back expectations that the Federal Reserve will exit its quantitative easing program any time soon. 

Back home, Indian equity benchmark made a positive start supported by global cues as the US markets ended modestly higher after a volatile day of trade overnight. In the morning session, market traded in green as investors were seen piling up position in pharma and infra stocks. In the late afternoon session, market pared its early gains but continued its positive trade on account of buying in some front line blue chip counters and taking cues from European counterparts. However, in the last leg of trade, market slipped into the negative territory on the back of profit booking in rate-sensitive stocks as hopes of rate cut by the RBI faded. Selling was witnessed in banking, realty and auto stocks. Finally, Nifty ended the session near its intra-day low level with a loss of 19 points. 

Meanwhile, sectoral indices on the NSE made a mixed closing. CNX PSU Bank down 1.21%, CNX Finance down 1.07%, CNX Realty down 0.96% and CNX IT down 0.53% remained the top losers in the trade. While CNX Pharma up by 1.84%, CNX Infra up by 0.87%, CNX FMCG up by 0.42% and CNX PSE up by 0.38% remained the gainers of the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 0.17% and reached 17.26.

The India VIX witnessed contraction of 0.17% at 17.26 as compared to its previous close of at 17.29 on Monday. The 50-share CNX Nifty lost 19.85 points or 0.33% to settle at 5,919.45.

Nifty June 2013 futures closed at 5932.35 on Tuesday at a premium of 12.90 points over spot closing of 5919.45, while Nifty July 2013 futures ended at 5946.70, at a premium of 27.25 points over spot closing. Nifty June futures saw contraction of 0.39 million (mn) units taking the total outstanding open interest (OI) to 13.40 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 0.55 points at 110.90 compared with spot closing of 110.35. The number of contracts traded was 12,641.

Tata Motors June 2013 futures were trading at a premium of 1.35 points at 307.45 compared with spot closing of 306.10. The number of contracts traded was 18,087.

DLF June 2013 futures were trading at a premium of 1.35 points at 193.95 compared with spot closing of 192.60. The number of contracts traded was 15,423.

Reliance Industries June 2013 futures were at a premium of 5.70 points at 786.00 compared with spot closing of 780.30. The number of contracts traded was 15,534. 

United Spirits June 2013 futures were at a premium of 28.40 points at 2534.40 compared with spot closing of 2506.00. The number of contracts traded was 16,893. 

Among Nifty calls, 6,200 SP from the June month expiry was the most active call with an addition of 5.36 million open interest.

Among Nifty puts, 5,900 SP from the June month expiry was the most active put with an addition  of 0.53 million open interest.

The maximum OI outstanding for Calls was at 6,200 SP (0.16 mn) and that for Puts was at 5,900 SP (5.85 mn).

The respective Support and Resistance levels are: Resistance 5963.95 -- Pivot Point 5937.1 -- Support 5892.6.

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 2.00, Finan Tech 1.71, Bharti Airtel1.57, DR Reddy 1.13, and Siemens 1.12.

Among most active underlying, Unitech witnessed an addition of 0.70 million of Open Interest in the June month futures contract followed by JP Associates which witnessed contraction of 0.37 million of Open Interest in the near month contract. Meanwhile, HDIL witnessed contraction of 1.97 million in the June month futures. Also, R Com witnessed contraction of 0.43 million in Open Interest in the June month contract. Finally, Reliance Power witnessed an addition of 0.22 million of Open Interest in the near month futures contract.