Nifty ends below crucial 5,600 level amid weak global cues

CNX Nifty ended lower on Monday amid selling in all major indices of the market as weak global cues weighed on investor sentiments. Further, major fall in the rupee value to about 59.80 against dollar also dented the sentiments. On the global front, Asian markets shut shop in red led by the Chinese market amid cash crunch at the banks and after an investment banker lowered its 2013 growth estimates for the country, citing weaker economic indicators and tightening of financial conditions. Meanwhile, European markets also opened lower on Monday.

Back home, Indian equity benchmark made a negative start pressurized by feeble global cues as international markets remain worried after the US Fed's decision to gradually reduce its monetary stimulus measures. In the first half, market traded in negative territory on the back of global uncertainties, while, the sustained sell-off by foreign institutional investors (FIIs) from the ninth consecutive sessions, totaling around Rs 7,760 crore continued to weigh on investor sentiments. Market extended its losses in the second half too, on account of selling in frontline blue chip counters and taking cues from European counterparts. Selling was witnessed in all major indices of the market. Finally, Nifty ended the session below its crucial 5,600 level with a loss of 77 points.     

Meanwhile, the sectoral indices on the NSE made a negative closing. CNX Realty down 4.68%, CNX PSU Bank down 2.52%, CNX PSE down 2.17% and CNX Media down 2.08% remained the top losers in the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 10.40% and reached 21.01.

The India VIX witnessed an addition of 10.40% at 21.01 as compared to its previous close of at 19.03 on Friday. The 50-share CNX Nifty lost 77.40 points or 1.37% to settle at 5,590.25.

Nifty June 2013 futures closed at 5588.30 on Monday at a discount of 1.95 points over spot closing of 5,590.25, while Nifty July 2013 futures ended at 5600.35 at a premium of 10.10 points over spot closing. Nifty June futures saw contraction of 0.50 million (mn) units taking the total outstanding open interest (OI) to 20.74 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 0.05 points at 51.10 compared with spot closing of 51.05. The number of contracts traded was 21,717.

Reliance Communications June 2013 futures were at a discount of 0.80 points at 112.70 compared with spot closing of 113.50. The number of contracts traded was 16,651. 

Tata Motors June 2013 futures were at a discount of 0.40 points at 283.40 compared with spot closing of 283.80. The number of contracts traded was 14,481. 

DLF June 2013 futures were trading at a premium of 0.45 points at 164.85 compared with spot closing of 164.40. The number of contracts traded was 20,293.

Tata Steel June 2013 futures were trading at a premium of 0.7 points at 267.20 compared with spot closing of 266.50. The number of contracts traded was 14,400.

Among Nifty calls, 5,700 SP from the June month expiry was the most active call with an addition of 2.82 million open interest.

Among Nifty puts, 5,600 SP from the June month expiry was the most active put with contraction of 2.10 million open interest.

The maximum OI outstanding for Calls was at 5,700 SP (9.43 mn) and that for Puts was at 5,600 SP (6.99 mn).

The respective Support and Resistance levels are: Resistance 5631.42 -- Pivot Point 5598.83 -- Support 5557.67.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.78 for June -month contract.

The top five scrips with highest PCR on OI were CESC 1.20, Dabur 1.15, Bajaj-Auto 1.07, Exide Ind 1.03 and Ambuja Cement 0.98.

Among most active underlying, JP Associates witnessed contraction of 5.26 million of Open Interest in the June month futures contract followed by Unitech which witnessed contraction of 9.19 million of Open Interest in the near month contract. Meanwhile, Reliance Communications witnessed contraction of 3.82 million in the June month futures. Also, RPower witnessed contraction of 2.80 million in Open Interest in the June month contract. Finally, DLF witnessed an addition of 0.04 million of Open Interest in the near month futures contract.