Nifty ends at 11-month low, as rupee closes at 63/$

The Nifty ended at 11-month closing low on Monday, amid selling pressure by institutional investors, after the rupee plummeted to new lows raising worries of a widening current account deficit and higher inflation. Investors remained rattled after RBI on August 14 unveiled stern measures, including curbs on Indian firms investing abroad.   Nifty on last Friday had crashed on fears that more steps will be announced to control capital outflows to shore up the unit. Weakness in global markets and speculation over the US rolling back its economic stimulus package as early as next month and the rupee racing towards 63-level affected the investors' sentiment. The domestic currency was trading at its all-time of low of 62.8 in the late afternoon trade. Later, it breached 63-mark after stock markets closed for the day.

Extending previous session’s bloodbath, Nifty made a gap down opening below their crucial levels of 5,450. The sentiments got spooked by the sharp fall in the rupee, the worst performing currency in Asia. The rupee fell as much as 62.40 to the dollar in early trades, breaching the previous low of 62.03 hit on Friday.  In late morning, the index continued to reel under selling pressure on concerns that the Reserve Bank of India might look at the option of a rate hike in order to contain inflation. Weakness in Asian stocks has also dampened the sentiments. In the afternoon session the Index plunged to 11 month low at almost around the 5350 level with the most European markets opening in the red. To give some respite the index pulled back to 5400 levels giving hope of a better opening on the next trading day.

Sectoral indices on the NSE made a red close. CNX PSU Bank was down by 3.38%, Nifty was down by 3.24%, CNX Auto was down by 3.19 , CNX Pharma was down by 2.62, and CNX Consumption was down by 2.45% remained the top loser in the trade. While, CNX Metal was up by 1.68%, CNX IT was up by 0.24%, and CNX Realty was up by 0.22% remained the top gainers in the trade.

The India VIX witnessed an addition of 8.24% at 25.59 as compared to its previous close of 23.64 on Friday. The 50-share CNX Nifty lost 93.10 points or 1.69 % to settle at 5,414.75.

Nifty August 2013 futures closed at 5416.75 on Monday at a premium of 2.00 points over spot closing of 5,414.75, while Nifty September 2013 futures ended at 5451.60 at a premium of 36.85 points over spot closing. Nifty August futures saw an addition of 1.56 million (mn) units taking the total outstanding open interest (OI) to 19.18 mn units. The near month August 2013 derivatives contract will expire on August 29, 2013.

From the most active contracts, DLF August 2013 futures last traded at a premium of 1.50 points at 148.25 compared with spot closing of 146.75. The number of contracts traded was 18,277.

Reliance Communications August 2013 futures last traded at a premium of 0.40 points at 119.85 compared with spot closing of 119.45. The number of contracts traded was 17,219.

Tata Motors August 2013 futures last traded at a premium of 1.25 points at 303.10 compared with spot closing of 301.85. The number of contracts traded was 17,881.

Tata Steel August 2013 futures were at a premium of 0.35 points at 247.40 compared with spot closing of 247.05. The number of contracts traded was 29,883. 

Yes Bank August 2013 futures were at a premium of 3.25 points at 242.85 compared with spot closing of 239.60. The number of contracts traded was 32,417.  Among Nifty calls, 5,700 SP from the Aug month expiry was the most active call with an addition of 1.19 million open interest.

Among Nifty puts, 5,300 SP from the Aug month expiry was the most active put with an addition of 1.60 million open interest.

The maximum OI outstanding for Calls was at 5,700 SP (7.50 mn) and that for Puts was at 5,300 SP (6.51mn).

The respective Support and Resistance levels of Nifty are: Resistance 5489.38 -- Pivot Point 5425.02 -- Support - 5350.38.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.88 for August month contract.

The top five scrips with highest PCR on OI were Bharat Forg 2.65, SR Transfin 1.63, Wipro 1.48, Ranbaxy 1.35 and Infosys 1.31.

Among most active underlying, SBI witnessed  an addition of 0.27 million of Open Interest in the Aug month futures contract followed by MC Dowell-N which witnessed an addition of 0.05 million of Open Interest in the near month contract; ICICI Bank witnessed  an addition   of 0.60 million in the Aug month futures. Also, Reliance Industries witnessed an addition of 0.71 million in Open Interest in the Aug month contract and DLF witnessed an addition of 0.85 million of Open Interest in the near month futures contract.