CNX Nifty made a late recovery and closed in positive terrain amid volatility led by gains in metal and realty stocks. Investors also remained anxious ahead of the US Federal Reserve policy outcome. On the global front, Asian markets ended lower, while, European markets, after a choppy opening, entered into green terrain on Wednesday.
Back home, Indian equity benchmark made a negative start amid mixed global cues with US stocks extending gains overnight on expectations that the Fed would tone down its stance. In the first half, market traded in red as investor sentiments remain dampened on foreign institutional investors (FIIs) selling shares worth a net Rs 597.37 crore on June 18, 2013. Market pared its early losses but continued weak trade in red on the back of buying in blue chip stocks available at attractive valuations. However, in the last leg of trade, market recovered and entered into positive territory as the revival in European markets ahead of the US Federal Reserve meet provided support to the benchmark. Investors were seen piling up position in metal, realty and media stocks. Finally, Nifty ended the session marginally in green near the neutral line.
Meanwhile, the sectoral indices on the NSE made a mixed closing. CNX Metal up by 1.24%, CNX Realty up by 1.09%, CNX Finance up by 0.56% and CNX Media up by 0.48% remained the top gainers in the trade. While, CNX Auto down 0.58%, CNX Pharma down 0.36%, CNX IT down 0.26% and CNX PSE down 0.18% remained the losers in the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 0.93% and reached 18.46.
The India VIX witnessed an addition of 0.93% at 18.46 as compared to its previous close of at 18.29 on Tuesday. The 50-share CNX Nifty gained 8.65 points or 0.15% to settle at 5,822.25.
Nifty June 2013 futures closed at 5822.70 on Wednesday at a premium of 0.45 points over spot closing of 5822.25, while Nifty July 2013 futures ended at 5840.90, at a premium of 18.65 points over spot closing. Nifty June futures saw an addition of 0.73 million (mn) units taking the total outstanding open interest (OI) to 18.53 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 2.90 points at 123.30 compared with spot closing of 126.20. The number of contracts traded was 33,502.
Tata Motors June 2013 futures were at a premium of 1.05 points at 292.45 compared with spot closing of 291.40. The number of contracts traded was 9,909.
Tata Steel June 2013 futures were at a premium of 0.95 points at 291.20 compared with spot closing of 290.25. The number of contracts traded was 13,764.
Reliance Industries June 2013 futures were trading at a premium of 1.80 points at 831.80 compared with spot closing of 830.00. The number of contracts traded was 19,249.
Jindal Steel June 2013 futures were trading at a premium of 0.90 points at 246.35 compared with spot closing of 245.45. The number of contracts traded was 13,967.
Among Nifty calls, 6,000 SP from the June month expiry was the most active call with an addition of 0.42 million open interest.
Among Nifty puts, 5,700 SP from the June month expiry was the most active put with an addition of 0.63 million open interest.
The maximum OI outstanding for Calls was at 6,000 SP (8.99 mn) and that for Puts was at 5,700 SP (8.06 mn).
The respective Support and Resistance levels are: Resistance 5841.13 -- Pivot Point 5809.52 -- Support 5790.63.
The Nifty Put Call Ratio (PCR) OI wise stood at 0.91 for June -month contract.
The top five scrips with highest PCR on OI were Dabur 1.19, Bajaj-Auto 1.18, Exide Ind 1.16, Bharti Airtel 0.98 and R Com 0.97. Among most active underlying, Unitech witnessed contraction of 4.46 million of Open Interest in the June month futures contract followed by JP Associates which witnessed contraction of 0.65 million of Open Interest in the near month contract. Meanwhile, Reliance Communications witnessed contraction of 4.51 million in the June month futures. Also, RPower witnessed contraction of 0.24 million in Open Interest in the June month contract. Finally, BHEL witnessed contraction of 0.90 million of Open Interest in the near month futures contract.
