Nifty tanks over 200 points as rupee depreciates

Nifty ended today's session on an extremely weak note falling nearly 3.7% after the rupee depreciated closer to its all time low level of 68.80. The investor sentiment was also shaken on reports that the US might strike Bashar Al Asad led regime in Syria for using chemical weapons against the opposition.

Nifty opened marginally higher on Tuesday however, quickly entered the red territory as the rupee started its declining streak, which opened 30 paise below the previous day’s closing. Initially the index started correcting as traders started booking profits after its 400-point rally. The Index tanked further by 100 points in the late morning session as traders panicked, citing the decline in the rupee, while taking note of the revision of FY14 GDP target to 4% from 5.5% by the HSBC. Sentiments further sank as reports about the possibility of strike by the US over Syria started coming in, and the Index broke it psychological support level of 5400. All hopes of a minor pullback diminished and market-men further sold off as the ratings agency S&P hinted that, the India downgrade could be more than that of Indonesia, and finally the nifty ended near the low point of the day.

Sectoral indices on the NSE made a red. CNX Bank  was down by 5.20%, CNX Realty was  down by 4.88%, CNX Finance was down by 4.87%, CNX FMCG was down  by 4.63% , CNX Media was down  by 4.47% and CNX Infra was  down  by 4.01%  were remained losers in the trade. While, there was no gainer in the trade.

The India VIX witnessed an addition of 17.93% at 32.49 as compared to its previous close of 27.55 on Monday. The 50-share CNX Nifty lost 209.30 points or 3.77% to settle at 5,341.45.

Nifty September 2013 futures closed at 5344.55 on Tuesday at a premium of 3.10 points over spot closing of 5,341.45, while Nifty October 2013 futures ended at 5372.05 at a premium of 30.60 points over spot closing. Nifty September futures saw an addition of 0.62 million (mn) units taking the total outstanding open interest (OI) to 18.66 mn units. The near month September 2013 derivatives contract will expire on September 26, 2013.

From the most active contracts, Reliance Communications September 2013 futures last traded at a discount of 0.20 points at 125.60 compared with spot closing of 125.80. The number of contracts traded was 19,968.

DLF September 2013 futures were at a premium of 1.20 points at 128.05 compared with spot closing of 126.85. The number of contracts traded was 16,716. 

Tata Motors September 2013 futures last traded at a premium of 3.00 points at 299.15 compared with spot closing of 296.15. The number of contracts traded was 20,188.

Tata Steel September 2013 futures last traded at a premium of 1.30 points at 282.40 compared with spot closing of 281.10. The number of contracts traded was 22,355.

Yes Bank September 2013 futures last traded at a premium of 3.00 points at 230.40 compared with spot closing of 227.40. The number of contracts traded was 27,995.

Among Nifty calls, 5,500 SP from the Sep month expiry was the most active call with an addition of 0.40 million open interest.

Among Nifty puts, 5,300 SP from the Sep month expiry was the most active put with an addition of 0.03 million open interest.

The maximum OI outstanding for Calls was at 5,500 SP (3.84 mn) and that for Puts was at 5,300 SP (6.83 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5507.02 -- Pivot Point 5415.38-- Support - 5249.82.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.40 for September month contract.

The top five scrips with highest PCR on OI were CESC 10.00, Finan Tech 2.47, Divis Lab 2.00, Raymond 2.00 and Coal India 1.82.

Among most active underlying, SBI witnessed an addition of 0.21 million of Open Interest in the Sep month futures contract followed by United Spirits an addition of 0.10 million Open Interest in the near month contract; Axis Bank  witnessed an addition of 0.36 million in the Sep month futures. Also, Reliance Industries witnessed an addition of 0.25 million in Open Interest in the Sep month contract and ICICI Bank witnessed contraction  of Open Interest in the near month futures contract.