Nifty ends below crucial 5,600 level on rupee depreciation

CNX Nifty ended lower on Wednesday amid selling in Auto, Infra and Metal stocks as the depreciating rupee dented investors’ sentiments. Today, rupee tumbled to an all-time low of over 60 per dollar and depreciated nearly 12 per cent in past 2 months, raising fears over more outflows in the near future. On global front, Asian counters ended mostly in the green. Meanwhile, European markets traded firmly in the early deals on Wednesday.

Back home, Indian equity benchmark made a positive start buoyed by firm global cues as the US markets edged higher overnight on the back of rising consumer confidence which overshadowed concerns about China’s credit problems. In the first half, market traded in positive territory as sentiments got some support from Finance Minister P Chidambaram's statement that government is moving ahead on the reforms path and will take a call on revising the FDI caps in different sectors in the second or third week of July. Some support also came from the Securities and Exchange Board of India (SEBI), which simplified the foreign investment rules to revive capital inflows into the country. Market continued its positive trade on account of buying in frontline blue chip counters and taking cues from European counterparts. However, in the last leg of trade, market paired all its early gains and slipped into the negative territory after Indian rupee cracked to an all-time low level of over 60 per US dollar. Finally, Nifty ended the session near its intra-day low level with a loss of 20 points.

Meanwhile, the sectoral indices on the NSE made a mixed closing. CNX Auto down 1.73%, CNX Metal down 1.38%, CNX Pharma down 1.12%, CNX Infra down 1.02% and CNX Finance down 0.78% remained the losers in the trade. While, CNX IT up by 1.72%, CNX FMCG up by 0.86%, CNX Energy up by 0.34% and CNX PSE up by 0.33% remained the top gainers in the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 0.33% and reached 21.07.

The India VIX witnessed contraction of 0.33% at 21.07 as compared to its previous close of at 21.14 on Tuesday. The 50-share CNX Nifty lost 20.40 points or 0.36% to settle at 5,588.70.

Nifty June 2013 futures closed at 5581.10 on Wednesday at a discount of 7.60 points over spot closing of 5,588.70, while Nifty July 2013 futures ended at 5588.20 at a discount of 0.50 points over spot closing. Nifty June futures saw contraction of 2.61 million (mn) units taking the total outstanding open interest (OI) to 16.52 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 0.35 points at 113.85 compared with spot closing of 114.20. The number of contracts traded was 19,974.

Tata Motors June 2013 futures were at a premium of 0.85 points at 272.85 compared with spot closing of 272.00. The number of contracts traded was 17,345. 

DLF June 2013 futures were at a discount of 0.30 points at 168.65 compared with spot closing of 168.95. The number of contracts traded was 19,307. 

Reliance Industries June 2013 futures were trading at a discount of 0.50 points at 803.00 compared with spot closing of 803.50. The number of contracts traded was 15,823.

ICICI Bank June 2013 futures were trading at a premium of 4.10 points at 1026.80 compared with spot closing of 1022.70. The number of contracts traded was 15,780.

Among Nifty calls, 5,700 SP from the June month expiry was the most active call with an addition of 2.35 million open interest.

Among Nifty puts, 5,500 SP from the June month expiry was the most active put with an addition of 0.57 million open interest.

The maximum OI outstanding for Calls was at 5,700 SP (11.28 mn) and that for Puts was at 5,500 SP (7.73 mn).

The respective Support and Resistance levels are: Resistance 5622.85 -- Pivot Point 5601.1 -- Support 5566.95.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.70 for June -month contract. The top five scrips with highest PCR on OI were Bajaj-Auto 1.37, Dabur 1.20, Federal Bank 1.20,Bharti Airtel 1.14, and Ambuja Cement  1.05.

Among most active underlying, JP Associates witnessed contraction of 9.35 million of Open Interest in the June month futures contract followed by Unitech which witnessed contraction of 10.50 million of Open Interest in the near month contract. Meanwhile, Reliance Communications witnessed contraction of 7.37 million in the June month futures. Also, IFCI witnessed contraction of 24.16 million in Open Interest in the June month contract. Finally, Reliance Power witnessed contraction of 9.48 million of Open Interest in the near month futures contract.