Nifty came off day lows on recovery in rupee

Nifty ended the session in the red for third day in a row on the back of depreciating rupee and weak global cues. Though, the index snapped the session off its day’s low as investors took positions in battered down but fundamentally strong stocks. The downgrade by global brokerage firm JP Morgan also weighed on investors’ sentiment. The market-men mood also got clobbered out of shape on report that foreign institutional investors (FIIs) sold shares worth a net Rs 680.08 crore on August 19, 2013. The sentiments remained down-beat since morning as the rupee, plunging lower breached its historic low level of 64 a dollar, though some speculated RBI intervention held the rupee within the limits, restricting its further fall. Meanwhile, the consumer durables remained the laggard since morning and could not recover despite the government banning duty-free import of high-end flat screen plasma TVs.

The index made a gap-down opening with frontline indices declining below crucial 5,350 in early deals on Tuesday on concerns over depreciating rupee that hit a fresh all time low, breaching the 64/$ mark today. Afterwards, index started paring losses on back of some buying witnessed in banking shares as bond yields and rupee witnessed recovery. After recovering most of the early losses,  index once again started moving southward  during noon trade after JPMorgan downgraded Indian markets to ‘neutral’ from ‘overweight’ on account of weak rupee, faltering economic growth and reversal of flows. But, losses remained capped as investors opted to take positions in metal and realty counters. Banking stocks too recovered after initial drop as rupee and bond witnessed recovery.

Sectoral indices on the NSE made a red close. CNX Auto was down by 2.16 , CNX Media  was down by 1.64%, CNX IT was down by 1.28%, CNX Pharma was down by 1.23, and CNX Consumption was down by 0.97% remained the top loser in the trade. While, CNX Metal was up by 2.72%, CNX Realty was up by 2.72%, CNX PSU Bank was up by 1.23%, CNX Commodities was up by 0.88% and Bank Nifty was up by 0.81% remained the top gainers in the trade.The India VIX witnessed an addition of 6.40% at 27.23 as compared to its previous close of 25.59 on Monday. The 50-share CNX Nifty lost 13.30 points or 0.25% to settle at 5,401.45.

Nifty August 2013 futures closed at 5398.25 on Tuesday at a discount of 3.20 points over spot closing of 5,401.45, while Nifty September 2013 futures ended at 5434.70 at a premium of 33.25 points over spot closing. Nifty August futures saw an addition of 1.60 million (mn) units taking the total outstanding open interest (OI) to 20.78 mn units. The near month August 2013 derivatives contract will expire on August 29, 2013.

From the most active contracts, Tata Motors August 2013 futures last traded at a premium of 2.60 points at 289.10 compared with spot closing of 286.50. The number of contracts traded was 19,941.

ITC August 2013 futures last traded at a discount of 1.60 points at 314.90 compared with spot closing of 316.50. The number of contracts traded was 17,068.

Tata Steel August 2013 futures last traded at a premium of 1.35 points at 257.40 compared with spot closing of 256.05. The number of contracts traded was 24,807.

Yes Bank August 2013 futures were at a premium of 3.35 points at 244.00 compared with spot closing of 240.65. The number of contracts traded was 40,944. 

Reliance Industries August 2013 futures were at a premium of 3.10 points at 825.10 compared with spot closing of 822.00. The number of contracts traded was 18,506. 

Among Nifty puts, 5,300 SP from the Aug month expiry was the most active put with an addition of 1.19 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 (7.71 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5444.05 -- Pivot Point 5375.2 -- Support - 5332.6.

The Nifty Put Call Ratio (PCR) OI wise stood at 0.85 for August month contract.

The top five scrips with highest PCR on OI were Bharat Forg 2.43, SR Transfin 1.63, Wipro 1.47, Infosys 1.39 and Ranbaxy 1.38.

Among most active underlying, SBI witnessed  contraction of 0.14 million of Open Interest in the Aug month futures contract followed by MC Dowell-N which witnessed contraction of 0.07 million of Open Interest in the near month contract; Reliance Industries witnessed  an addition   of 0.93 million in the Aug month futures. Also, ICICI Bank witnessed contraction of 0.36 million in Open Interest in the Aug month contract and Yes Bank witnessed an addition of 0.99 million of Open Interest in the near month futures contract.