Nifty closed flat on par with yesterday's close with minor losses after a volatile trading session on Wednesday, which saw the index plunge more than 150 points in early morning trades as the rupee opened weak. The recovery in the market later in the day was on back of buying witnessed in software exporters amid expectations of improvement in profit margins after rupee touched yet another record low of 68 per US dollar.
Extending their previous session’s slaughter, nifty made a gap-down opening pressurized by feeble global cues coupled by weakness in rupee. The rupee fell below the 68 per dollar mark in morning trade as uncertainty over a possible US-led military strike against Syria knocked down Asian equity markets and currencies, also pushing the domestic benchmark bond yield to 9%. In late morning, Index trimmed losses after hitting its lowest level in nearly 11 months on the back of recovery in rupee from its record low of 68.72 per dollar. In early noon, Index sharply off the day's lows on market buzz that Life Insurance Corporation (LIC) -- India's biggest domestic institutional investor -- was buying shares after a steep initial slide in share prices. High volatility was witnessed as the index trimmed gains after reversing intraday losses to move into positive zone from negative in late trades.
Sectoral indices on the NSE made a red close. CNX Media was down by 2.77%, CNX PSE was down by 2.41%, CNX PSU Bank was down by 2.30%, CNX Finance was down by 1.87% and Bank Nifty was down by 1.24% remained the top loser in the trade. While, CNX IT was up by 2.50%, CNX Metal was up by 1.57%, CNX Pharma was up by 1.18%, CNX Auto was up by 0.12% and CNX MNC was up by 0.08% was only the gainer in the trade.
The India VIX witnessed an addition of 10.06% at 32.38 as compared to its previous close of 29.42 on Tuesday. The 50-share CNX Nifty lost 2.45 points or 0.05% to settle at 5,285.00.
Nifty August 2013 futures closed at 5288.95 on Wednesday at a premium of 3.95 points over spot closing of 5,285.00, while Nifty September 2013 futures ended at 5304.00 at a premium of 19.00 points over spot closing. Nifty August futures saw contraction of 2.18 million (mn) units taking the total outstanding open interest (OI) to 17.73 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 0.40 points at 132.10 compared with spot closing of 131.70. The number of contracts traded was 34,187.
Reliance Industries August 2013 futures last traded at a premium of 3.85 points at 811.85 compared with spot closing of 808.00. The number of contracts traded was 39,923.
HDFC Bank August 2013 futures were at a premium of 4.85 points at 654.50 compared with spot closing of 649.65. The number of contracts traded was 29,562.
ICICI Bank August 2013 futures were at a discount of 1.70 points at 795.45 compared with spot closing of 797.15. The number of contracts traded was 44,964.
Tata Steel August 2013 futures last traded at a premium of 0.20 points at 280.00 compared with spot closing of 279.80. The number of contracts traded was 25,342. Among Nifty calls, 5,400 SP from the Aug month expiry was the most active call with contraction of 0.56 million open interest.
Among Nifty puts, 5,200 SP from the Aug month expiry was the most active put with an addition of 0.51 million open interest.
The maximum OI outstanding for Calls was at 5,400 SP (5.68 mn) and that for Puts was at 5,200 SP (7.27 mn).
The respective Support and Resistance levels of Nifty are: Resistance 5362.18 -- Pivot Point 5240.52 -- Support - 5163.33.
The Nifty Put Call Ratio (PCR) OI wise stood at 0.70 for August month contract.
The top five scrips with highest PCR on OI were Bharat Forg 2.04, Infosys 1.64, Wipro 1.60, MRF 1.50, and TCS 1.42.
Among most active underlying, SBI witnessed contraction of 1.51 million of Open Interest in the Aug month futures contract followed by ICICI Bank which witnessed contraction of 1.47 million of Open Interest in the near month contract; United Spirits witnessed contraction of 0.88 million in the Aug month futures. Also, Reliance Industries witnessed contraction of1.12 million in Open Interest in the Aug month contract and HDFC witnessed contraction of 1.05 million of Open Interest in the near month futures contract.
