Nifty ends lower amid profit booking in energy stocks

CNX Nifty, snapping the three day winning streak, ended today's volatile trading session in red amid profit booking in energy stocks which had rallied post the government's decision to steeply hike domestic natural gas price. Further, selling was witnessed in realty, banking and media stocks which dampened market sentiment. On the global front, Asian markets ended mostly in the red, while, European markets also made a negative opening on Tuesday.

Back home, Indian equity benchmark made a negative start amid weak Asian cues as investors remained caution over the concerns about the Chinese economy. In the first half, market traded in red as investors’ sentiments turned down after the core sector growth remained sluggish. The core sector of eight infrastructure industries recorded a growth of 2.3 per cent in May this year against 7.2 per cent in the year-ago period mainly due to declining output of crude oil, coal, fertilizer and natural gas. Further, trade deficit with China, which was increased by 34 percent to $12 billion in the first five months of the year also added to the pessimistic sentiments. Market extended its losses and continued weak trade till the end of session on account of selling in frontline blue chip counters and taking cues from European counterparts. Finally, Nifty ended the session near the intra-day low level with a loss of 41 points.  

Meanwhile, the sectoral indices on the NSE made a negative closing. CNX Realty down 2.10%, CNX Media down 1.77%, CNX PSU Bank down 1.56%, CNX energy down 1.29% and CNX Metal down 1.03% remained the top losers in the trade. While, CNX Pharma up by 0.62% remained the only gainer in the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down 0.66% and reached 18.21.

The India VIX witnessed an addition of 0.66% at 18.21 as compared to its previous close of at 18.09 on Monday. The 50-share CNX Nifty lost 41.30 points or 0.70% to settle at 5,857.55.

Nifty July 2013 futures closed at 5859.05 on Tuesday at a premium of 1.50 points over spot closing of 5857.55, while Nifty August 2013 futures ended at 5881.50 at a premium of 23.95 points over spot closing. Nifty July futures saw contraction of 0.16 million (mn) units taking the total outstanding open interest (OI) to 15.09 mn units. The near month July 2013 derivatives contract will expire on July 25, 2013.

From the most active contracts, JP Associates July 2013 futures were trading at a premium of 0.35 points at 56.70 compared with spot closing of 56.35. The number of contracts traded was 11,892.

Reliance Communications July 2013 futures were trading at a discount of 0.30 points at 130.20 compared with spot closing of 130.50. The number of contracts traded was 21,682.

United Spirits July 2013 futures were at a premium of 23.80 points at 2431.25 compared with spot closing of 2407.45. The number of contracts traded was 27,878. 

Reliance Capital July 2013 futures were at a premium of 2.40 points at 358.70 compared with spot closing of 356.30. The number of contracts traded was 14,950. 

Reliance Industries July 2013 futures were trading at a discount of 0.55 points at 874.45 compared with spot closing of 875.00. The number of contracts traded was 19,377.

Among Nifty calls, 6,000 SP from the July month expiry was the most active call with an addition of 1.07 million open interest.

Among Nifty puts, 5,600 SP from the July month expiry was the most active put with contraction of 0.06 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (6.19 mn) and that for Puts was at 5,600 SP (6.60 mn).

The respective Support and Resistance levels are: Resistance 5886.8 -- Pivot Point 5869.55 -- Support 5840.3. The Nifty Put Call Ratio (PCR) OI wise stood at 1.27 for July -month contract. The top five scrips with highest PCR on OI were Sesa Goa 3.37, Siemens 2.40, GAIL 1.64, Syndicate Bank 1.60 and MC Dowell-N 1.43.

Among most active underlying, IFCI witnessed an addition of 1.73 million of Open Interest in the July month futures contract followed by Jaiprakash Associates which witnessed contraction of 0.36 million of Open Interest in the near month contract. Meanwhile, Unitech witnessed contraction of 1.62 million in the July month futures. Also, RCom witnessed an addition of 1.67 million in Open Interest in the July month contract. Finally, R Power witnessed contraction of 0.19 million of Open Interest in the near month futures contract.