CNX Nifty snapping a three-day losing streak on Wednesday closed slightly in positive led by gains in realty and energy stocks amid weak global cues. On the global front, all Asian equity indices shut shop in red, while European markets traded lower in early deals taking a cue from a weak trading session in Asia where Japanese stocks slumped after a speech from Prime Minister Shinzo Abe fell short of expectations.
Back home, Indian equity benchmark made a negative start on the back of weak global cues as the US markets ended lower overnight. In the first half, market traded in negative territory due to sustained selling by funds amid a weak trend in the Asian region. However, the losses remain capped as some support came in from Chief economic advisor Raghuram Rajan’s statement that recent initiatives of the government will push economic growth rate in the current fiscal. In the second half, market pared its losses and entered the positive territory as investor sentiments got a boost after the HSBC services Purchasing Managers’ Index (PMI), based on a survey of around 400 companies, came at 53.6 in May, up from 50.7 in April, pointing to a solid expansion in the services sector output. Buying was witnessed in energy, realty and metal stocks. Finally, Nifty ended the session on a flat note.
Meanwhile, most of the sectoral indices on the NSE made a positive closing. CNX Energy up by 1.61%, CNX Realty up by 1.58%, CNX Metal up by 0.43%, CNX Infra up by 0.36% remained the top gainers of the trade. While CNX Media down 0.92%, CNX IT down 0.65% and CNX FMCG down 0.52% remained the losers in the trade. India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 2.78% and reached 16.78.
The India VIX witnessed contraction of 2.78% at 16.78 as compared to its previous close of at 17.26 on Tuesday. The 50-share CNX Nifty gained 4.40 points or 0.07% to settle at 5,923.85.
Nifty June 2013 futures closed at 5938.30 on Wednesday at a premium of 14.45 points over spot closing of 5923.85, while Nifty July 2013 futures ended at 5954.00, at a premium of 30.15 points over spot closing. Nifty June futures saw contraction of 0.25 million (mn) units taking the total outstanding open interest (OI) to 13.15 mn units. The near month June 2013 derivatives contract will expire on June 27, 2013.
From the most active contracts, JP Associates June 2013 futures were trading at a premium of 0.40 points at 67.50 compared with spot closing of 67.10. The number of contracts traded was 9,591.
Reliance Communications June 2013 futures were trading at a premium of 0.65 points at 117.10 compared with spot closing of 116.45. The number of contracts traded was 20,720.
Tata Motors June 2013 futures were trading at a premium of 1.90 points at 309.20 compared with spot closing of 307.30. The number of contracts traded was 9,775.
DLF June 2013 futures were at a premium of 1.90 points at 200.00 compared with spot closing of 198.10. The number of contracts traded was 19,104.
Reliance Industries June 2013 futures were at a premium of 3.75 points at 805.75 compared with spot closing of 802.00. The number of contracts traded was 16,605.
Among Nifty calls, 6,200 SP from the June month expiry was the most active call with an addition of 0.52 million open interest.
Among Nifty puts, 5,900 SP from the June month expiry was the most active put with an addition of 0.24 million open interest.
The maximum OI outstanding for Calls was at 6,200 SP (5.89 mn) and that for Puts was at 5,900 SP (6.10 mn).
The respective Support and Resistance levels are: Resistance 5944.8 -- Pivot Point 5914.25 -- Support 5893.3.
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, Adani Ports 1.53, DR Reddy 1.39, Bharti Airtel1.28, and Uniphos 1.06.
Among most active underlying, Unitech witnessed contraction of 2.36 million of Open Interest in the June month futures contract followed by JP Associates which witnessed an addition of 0.21 million of Open Interest in the near month contract. Meanwhile, Reliance Communications witnessed an addition of 4.94 million in the June month futures. Also, Reliance Power witnessed contraction of 0.23 million in Open Interest in the June month contract. Finally, DLF witnessed contraction of 0.53 million of Open Interest in the near month futures contract.
