Nifty ends on a flat note; Rupee hits life-time low

CNX Nifty ended the volatile session on a flat note amid selling in realty, banking and pharma stocks. The record fall in rupee value against the dollar also turned down the investors’ sentiments. The rupee today plunged to an all-time low of 58.15 against the dollar on persistent dollar demand from importers and banks. On the global front, Asian equity indices shut shop in green after a report showed the US added more workers than expected last month. Meanwhile, European counters too traded mostly higher in early deals on Monday.

Back home, Indian equity benchmark made a positive start buoyed by firm global cues as the US markets surged on Friday as traders reacted positively to the much awaited monthly jobs report. Market continued positive trade as some support came in after President Pranab Mukherjee asked people not to panic by negative sentiments expressed in certain quarters. In the noon session, market pared its early gains, traded near the neutral line as sentiments were hurt by sliding rupee, which hit a new life-time low of over 58. In the late afternoon session also, market continued its volatile trade, on the back of weakness in rupee against the dollar and political developments. Buying witnessed in IT and FMCG stocks were offset by selling in realty, PSU banks and pharma, leading the market to close near the neutral line. 

Meanwhile, the sectoral indices on the NSE made a negative closing. CNX Realty down 1.52%, CNX Pharma down 1.13%, CNX PSU Bank down 0.96% and CNX Infra down 0.93% remained the top losers in the trade. While, CNX IT up by 0.99%, CNX FMCG up by 0.34% and CNX Energy up by 0.32% remained the top gainers of the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 4.38% and reached 18.11.

The India VIX witnessed an addition of 4.38% at 18.11 as compared to its previous close of at 17.35 on Friday. The 50-share CNX Nifty lost 3.00 points or 0.05% to settle at 5,878.00.

Nifty June 2013 futures closed at 5893.35 on Monday at a premium of 15.35 points over spot closing of 5878.00, while Nifty July 2013 futures ended at 5916.55, at a premium of 38.55 points over spot closing. Nifty June futures saw contraction of 0.15 million (mn) units taking the total outstanding open interest (OI) to 12.17 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 0.45 points at 111.15 compared with spot closing of 110.70. The number of contracts traded was 15,031.

Tata Motors June 2013 futures were at a premium of 0.35 points at 298.05 compared with spot closing of 297.70. The number of contracts traded was 12,890. 

DLF June 2013 futures were at a premium of 0.35 points at 196.95 compared with spot closing of 196.60. The number of contracts traded was 10,019. 

Reliance Industries June 2013 futures were trading at a premium of 0.85 points at 792.85 compared with spot closing of 792.00. The number of contracts traded was 11,585.

Opto Circuits (India) June 2013 futures were trading at a discount of 0.40 points at 21.70 compared with spot closing of 22.10. The number of contracts traded was 13,527.

Among Nifty calls, 6,100 SP from the June month expiry was the most active call with an addition of 0.38 million open interest.

Among Nifty puts, 5,900 SP from the June month expiry was the most active put with contraction  of 0.10 million open interest.

The maximum OI outstanding for Calls was at 6,100 SP (6.83 mn) and that for Puts was at 5,900 SP (6.55 mn).

The respective Support and Resistance levels are: Resistance 5920.63 -- Pivot Point 5889.02 -- Support 5846.38.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.02 for June -month contract.

The top five scrips with highest PCR on OI were DR Reddy 1.66, Siemens 1.10, CESC 1.00, TCS 0.99, and ACC 0.97.

Among most active underlying, Unitech witnessed an addition of 0.38 million of Open Interest in the June month futures contract followed by JP Associates which witnessed an addition of 0.30 million of Open Interest in the near month contract. Meanwhile, Reliance Communications witnessed contraction of 2.72 million in the June month futures. Also, Shree Renuka Sugars witnessed an addition of 0.28 million in Open Interest in the June month contract. Finally, Reliance Power witnessed an addition of 0.80 million of Open Interest in the near month futures contract.