Nifty ends June F&O series with a massive cut of over 7%

CNX Nifty finished the June F&O series with a massive cut of 441 points or 7.21%, after gaining over 3.5% in the May series. Today, markets witnessed a sharp rally on back of short coverings amid firm global cues. Further, lower-than-expected current account deficit (CAD) recorded for the fourth quarter of previous fiscal and the strengthening rupee against the US dollar also boosted investors' sentiments. On global front, Asian markets closed in green barring the Shanghai Composite. In the meanwhile, European counters made flat-to-positive opening in early deals on Thursday.

Back home, Indian equity benchmarks made a gap up opening leaping towards its crucial 5,650 level amid firm global cues as the US markets ended higher in the previous session on hopes that the Fed may hold back from reducing the stimulus after slower-than-estimated growth in the US economy. In the first half, market traded in the positive territory as investors’ sentiments got a boost on better- than-expected current account deficit (CAD) data, which stood at $18.1 billion, or 3.6 % of the GDP in the March quarter, sharply lower from the historically high level of 6.7% seen in the December quarter. Some support also came from the recovery in Indian Rupee as it gained 50 paise against the US dollar, backing off from a record low it hit in the previous session. Markets extended gains and continued their positive trade till the end of session on account of buying in all major sectors of the market except FMCG. Finally, Nifty ended the session with a massive gain of 93 points for the day. 

Meanwhile, the sectoral indices on the NSE made a positive closing despite FMCG. CNX IT up by 3.27%, CNX Energy up by 2.52%, CNX Pharma up by 2.41%, CNX Service up by 2.09% and CNX Finance up by 1.88% remained the top gainers in the trade. CNX FMCG down by 0.02%, remained the only loser. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 10.54% and reached 18.85.

The India VIX witnessed contraction of 10.54% at 18.85 as compared to its previous close of at 21.07 on Wednesday. The 50-share CNX Nifty gained 93.65 points or 1.68% to settle at 5,682.35.

Nifty July 2013 futures closed at 5687.05 on Thursday at a premium of 4.70 points over spot closing of 5,682.35, while Nifty August 2013 futures ended at 5708.15 at a premium of 25.80 points over spot closing. Nifty July futures saw an addition of 2.08 million (mn) units taking the total outstanding open interest (OI) to 11.91 mn units. The near month July 2013 derivatives contract will expire on July 25, 2013.

From the most active contracts, Tata Motors July 2013 futures were trading at a discount of 1.25 points at 272.75 compared with spot closing of 274.00. The number of contracts traded was 21,955.

Reliance Industries July 2013 futures were at a premium of 5.80 points at 835.15 compared with spot closing of 829.35. The number of contracts traded was 25,553. 

United Spirits July 2013 futures were at a premium of 7.95 points at 2240.00 compared with spot closing of 2232.05. The number of contracts traded was 20,744. 

ICICI Bank July 2013 futures were trading at a premium of 2.55 points at 1038.55 compared with spot closing of 1036.00. The number of contracts traded was 19,847.

SBI July 2013 futures were trading at a premium of 7.80 points at 1925.80 compared with spot closing of 1918.00. The number of contracts traded was 28,091.Among Nifty calls, 5,800 SP from the July month expiry was the most active call with an addition of 0.70 million open interest.

Among Nifty puts, 5,600 SP from the July month expiry was the most active put with an addition of 1.93 million open interest.

The maximum OI outstanding for Calls was at 5,800 SP (3.67 mn) and that for Puts was at 5,600 SP (5.94 mn).

The respective Support and Resistance levels are: Resistance 5710.82 -- Pivot Point 5670.88 -- Support 5642.42.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.28 for July -month contract. The top five scrips with 2highest PCR on OI were Exide Ind 7.00, Raymond 5.50, Sesa Goa 3.05, Ambuja Cements 2.13, and Adani Ports 2.00.

Among most active underlying, JP Associates witnessed contraction of 16.21 million of Open Interest in the July month futures contract followed by Unitech which witnessed contraction of 19.59 million of Open Interest in the near month contract. Meanwhile, Reliance Communications witnessed contraction of 7.53 million in the July month futures. Also, BHEL witnessed an addition of 3.96 million in Open Interest in the July month contract. Finally, DLF witnessed contraction of 5.19 million of Open Interest in the near month futures contract.