Nifty ends lower; depreciating rupee hurts investors’ sentiments

CNX Nifty ended lower on Monday following the record slide in the Indian rupee as overseas investors sold away shares in the emerging markets and shifted stance to the developed economies like US after robust jobs data. Global investors’ sentiments remained jittery on fears that the US Federal Reserve could soon begin tapering its bond-buying stimulus after a stronger-than-expected jobs report. Meanwhile, the value of Indian rupee fell to an all-time low of over 61.20 per dollar amid heavy demand for the American currency. On global front, Asian markets made a negative closing with all the major indices in the region ending in the red. Meanwhile, European markets opened higher on Monday.

Back home, Indian equity benchmark made a negative start, pressurized by weak Asian cues. In the first half, market traded in negative territory as falling rupee value weighed heavy on the investors’ sentiments. Further, sentiments also remained dampened after a CII survey stated that unless the government tackles issues like dwindling FDI flow and high current account deficit, the rupee will continue to remain volatile and may depreciate further. Market continued weak trade in the second half too amid selling in PSE, realty and finance stocks. However, the market recovered from the day’s low on the back of buying witnessed in IT and technology shares as investor hoped that weakening rupee could boost the revenue of these sectors. Finally, Nifty ended the session with a loss of 56 points.

Meanwhile, sectoral indices on the NSE made a mixed closing. CNX PSE down 2.39%, CNX Realty down 2.01%, CNX Finance down 1.97%, CNX Energy down 1.96% and CNX Auto down 1.49% remained the top losers in the trade. While, CNX FMCG up by 0.63%, CNX Media up by 0.52% and CNX IT up by 0.05% remained the gainers in the trade. While, India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 3.59% and reached 19.34.

The India VIX witnessed an addition of 3.59% at 19.34 as compared to its previous close of at 18.67 on Friday. The 50-share CNX Nifty lost 56.35 points or 0.96% to settle at 5,811.55.

Nifty July 2013 futures closed at 5829.25 on Monday at a premium of 17.70 points over spot closing of 5,811.55, while Nifty August 2013 futures ended at 5852.45 at a premium of 40.9 points over spot closing. Nifty July futures saw contraction of 0.79 million (mn) units taking the total outstanding open interest (OI) to 14.85 mn units. The near month July 2013 derivatives contract will expire on July 25, 2013.

From the most active contracts, RCOM July 2013 futures remained flat same as its spot closing of 144.80. The number of contracts traded was 35,521.

Tata Motors July 2013 futures last traded at a premium of 0.55 points at 288.65 compared with spot closing of 288.10. The number of contracts traded was 12,415.

Reliance Capital July 2013 futures were at a  discount  of 0.65 points at 372.35 compared with spot closing of 373.00. The number of contracts traded was 21,310. 

Reliance Industries July 2013 futures were at a premium of 5.75 points at 871.5 compared with spot closing of 865.75. The number of contracts traded was 18,087. 

United Spirits July 2013 futures last traded at a premium of 19.90 points at 2575.85 compared with spot closing of 2,555.95. The number of contracts traded was 15,229.

Among Nifty calls, 6,000 SP from the July month expiry was the most active call with contraction of 0.05 million open interest.

Among Nifty puts, 5,600 SP from the July month expiry was the most active put with an addition of 0.37 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (6.85 mn) and that for Puts was at 5,600 SP (8.71 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5838.42 -- Pivot Point 5806.98 -- Support-- 5780.12.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.39 for July-month contract. The top five scrips with highest PCR on OI were Sesa Goa 2.52, Ambuja Cement 1.69, Ultra Cement 1.56, Divi’s Lab-1.50 and Jubl Food 1.38.

Among most active underlying, Unitech witnessed an addition of 4.66 million of Open Interest in the July month futures contract followed by IFCI which witnessed a contraction of 0.10 million of Open Interest in the near month contract, Jaiprakash Associates witnessed an addition of 2.62 million in the July month futures. Also, Reliance Communication witnessed contraction of 6.86 million in Open Interest in the July month contract and Reliance Power witnessed addition of 2.04 million of Open Interest in the near month futures contract.