Nifty ends lower amid weak macro-economic data

CNX Nifty ended lower for the 5th straight session on Wednesday as concerns over inflationary pressure and weak macro-economic situation continued to weigh on investor sentiments. Country’s industrial production grew less than expected at 2 percent in April from a year earlier added to the pessimistic sentiments. On the other hand, Consumer Price Index (CPI)-based inflation came down to 9.31% in May from 9.39% in April, was above expectation and thus turned down the sentiments. On the global front, Asian markets ended the session mostly in red amid looming fear over scale-back of US Federal Reserve bond-buying plan. Meanwhile, European markets opened lower on Wednesday.

Back home, Indian equity market made a negative start pressurized by weak global cues as the US markets turned negative overnight. In the first half, market traded in red as investor sentiments got dampened by the April Index of Industrial Production (IIP) and Consumer Price Index (CPI), which were below street expectations. Market continued its negative trade in second half too, on account of selling in front line blue chip counters and taking cues from European counterparts. Selling was witnessed in media, metal and IT stocks. Finally, Nifty ended the session with a loss of 28 points.

Meanwhile, the sectoral indices on the NSE made a mixed closing. CNX Media down 1.79%, CNX IT down 1.72%, CNX Metal down 1.67% and CNX FMCG down 1.07% remained the top losers in the trade. While, CNX Pharma up by 0.68%, CNX PSU Bank up by 0.56%, CNX Energy up by 0.31% and CNX Realty up by 0.07% remained the gainers of the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 3.28% and reached 18.85.

The India VIX witnessed contraction of 3.28% at 18.85 as compared to its previous close of at 19.49 on Tuesday. The 50-share CNX Nifty lost 28.60 points or 0.49% to settle at 5,760.20.

Nifty June 2013 futures closed at 5771.90 on Wednesday at a premium of 11.70 points over spot closing of 5760.20, while Nifty July 2013 futures ended at 5792.50, at a premium of 32.30 points over spot closing. Nifty June futures saw an addition of 0.96 million (mn) units taking the total outstanding open interest (OI) to 14.53 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 discount of 5.05 points at 103.15 compared with spot closing of 108.20. The number of contracts traded was 26,484.

DLF June 2013 futures were at a premium of 0.40 points at 190.35 compared with spot closing of 189.95. The number of contracts traded was 14,286. 

Titan Industries June 2013 futures were at a premium of 0.90 points at 205.85 compared with spot closing of 204.95. The number of contracts traded was 31,791. 

Jindal Steel & Power June 2013 futures were trading at a premium of 2.15 points at 236.15 compared with spot closing of 234.00. The number of contracts traded was 17,331.

ICICI Bank June 2013 futures were trading at a premium of 3.85 points at 1087.85 compared with spot closing of 1084.00. The number of contracts traded was 18,000.

Among Nifty calls, 6,000 SP from the June month expiry was the most active call with an addition of 0.68 million open interest.

Among Nifty puts, 5,700 SP from the June month expiry was the most active put with an addition of 0.72 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (7.57 mn) and that for Puts was at 5,700 SP (7.19mn).

The respective Support and Resistance levels are: Resistance 5789.2 -- Pivot Point 5763.9 -- Support 5734.9.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.92 for June -month contract.

The top five scrips with highest PCR on OI were DR Reddy 1.53, CESC 1.50, Exide Ind 1.23 ACC 0.95 and HUL 0.89.

Among most active underlying, Unitech witnessed contraction of 0.42 million of Open Interest in the June month futures contract followed by JP Associates which witnessed contraction of 0.84 million of Open Interest in the near month contract. Meanwhile, Reliance Communications witnessed an addition of 6.43 million in the June month futures. Also, R Power witnessed contraction of 0.43 million in Open Interest in the June month contract. Finally, IFCI witnessed an addition of 1.16 million of Open Interest in the near month futures contract.