Nifty ends below 5,700 level on weak global cues

CNX Nifty extended losses for the sixth straight day and closed over 1% down on Thursday amid sluggish global cues, as institutional investors booked profit in blue chips stocks. Further, the depreciating rupee also turned down investor sentiments. On the global front, Asian markets closed in red. Meanwhile, European counters also made a negative start on Thursday after World Bank slashed its global growth forecast amid concerns that central banks may scale back their stimulus measures.

Back home, Indian equity benchmark made a gap down start with inching lower towards 5,700 level pressurized by weak global cues as the US markets extended their plunge, overnight. In the first half, market traded in red on account of heavy selling witnessed in risk-sensitive stocks after high consumer price inflation (CPI) number for May dashed hopes of a rate cut by the RBI in its policy meet on June 17. However, losses remain capped up to certain extent after the global rating agency Fitch Ratings’ revised India’s outlook to Stable from Negative with affirmation of ‘BBB-‘ rating. Market continued its weak trade in second half too, on account of selling in frontline blue chip counters and taking weak cues from European counterparts. Selling was witnessed in all major indices and market ended the session with a loss of 61 points.   

Meanwhile, the sectoral indices on the NSE made a negative closing. CNX Auto down 2.56%, CNX Realty down 2.29%, CNX Pharma down 1.85%, CNX PSE down 1.74% and CNX IT down 1.62% remained the top losers in the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 3.13% and reached 19.44.

The India VIX witnessed an addition of 3.13% at 19.44 as compared to its previous close of at 18.85 on Wednesday. The 50-share CNX Nifty lost 61.10 points or 1.06% to settle at 5,699.10.

Nifty June 2013 futures closed at 5705.45 on Thursday at a premium of 6.35 points over spot closing of 5699.10, while Nifty July 2013 futures ended at 5724.40, at a premium of 25.30 points over spot closing. Nifty June futures saw an addition of 1.26 million (mn) units taking the total outstanding open interest (OI) to 15.79 mn units. The near month June 2013 derivatives contract will expire on June 27, 2013.

From the most active contracts, Tata Motors June 2013 futures were trading at a premium of 1.40 points at 283.50 compared with spot closing of 282.10. The number of contracts traded was 12,170.

Tata Steel June 2013 futures were at a premium of 2.10 points at 266.80 compared with spot closing of 264.70. The number of contracts traded was 16,257. 

Reliance Industries June 2013 futures were at a premium of 1.35 points at 792.65 compared with spot closing of 791.30. The number of contracts traded was 13,168. 

Titan Industries June 2013 futures were trading at a premium of 0.90 points at 214.30 compared with spot closing of 213.40. The number of contracts traded was 12,463.

ICICI Bank June 2013 futures were trading at a premium of 5.80 points at 1073.80 compared with spot closing of 1068.00. The number of contracts traded was 11,678.

Among Nifty calls, 6,000 SP from the June month expiry was the most active call with contraction of 0.17 million open interest.

Among Nifty puts, 5,700 SP from the June month expiry was the most active put with contraction of 0.16 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (7.40 mn) and that for Puts was at 5,700 SP (7.02 mn).

The respective Support and Resistance levels are: Resistance 5724.93 -- Pivot Point 5704.02 -- Support 5678.18.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.85 for June -month contract.

The top five scrips with highest PCR on OI were CESC 2.17, DR Reddy 1.35, Exide Ind 1.19, ACC 0.95 and HUL 0.86.

Among most active underlying, Unitech witnessed an addition of 1.05 million of Open Interest in the June month futures contract followed by JP Associates which witnessed an addition of 0.51 million of Open Interest in the near month contract. Meanwhile, Reliance Communications witnessed an addition of 1.17 million in the June month futures. Also, IFCI witnessed contraction of 0.12 million in Open Interest in the June month contract. Finally, R Power witnessed contraction of 0.06 million of Open Interest in the near month futures contract.