Nifty snaps 5-day rally; ahead of IIP, inflation data

Nifty ended the trading session on a lower note below 5,900 levels as investors adopted a cautious stance ahead of IIP and retail inflation data, amid the rupee weakening to near 64-levels versus the US dollar. Deviating from their five days gaining streak, nifty reversed direction after a firm opening triggered by higher Asian stocks. Volatility ruled the roost on street as the index edged lower to hit intraday low in late morning session. Sentiments got dampened after rating agency Crisil cut India’s economic growth estimate to 4.8 percent for the current fiscal and said agriculture is the only hope for higher rate of expansion in this period of downturn. Index continued to hover in the negative terrain and hit fresh intraday low in noon trade as European markets reversed initial gains and after Indonesia's central bank surprised markets with a quarter-percentage-point increase in its benchmark policy rate. Last hour of trade and index plunged to its lowest levels, as weakness in rupee against dollar, along with metal, financials and auto shares leading the fall.

Sectoral indices on the NSE made a red close. CNX FMCG was up by 0.74%, CNX Realty was up by 0.52% and CNX Pharma was up by 0.12% were remained gainers in the trade. While, CNX Metal was down by 2.61%, CNX MNC was down by 1.95%, CNX PSE was down by 1.66%, CNX Auto was down by 1.66% and CNX Finance was down by 1.28% were remained losers in the trade. The India VIX witnessed contraction of 0.13% at 29.71 as compared to its previous close of29.75 on Wednesday. The 50-share CNX Nifty lost 62.45 points or 1.06% to settle at 5,850.70.

Nifty September 2013 futures closed at 5860.45 on Thursday at a premium of 9.75 points over spot closing of 5,850.70, while Nifty October 2013 futures ended at 5900.90 at a premium of 50.20 points over spot closing. Nifty September futures saw contraction of 0.17 million (mn) units taking the total outstanding open interest (OI) to 18.93 mn units. The near month September 2013 derivatives contract will expire on September 26, 2013.

From the most active contracts, JP Associates September 2013 futures last traded at a premium of 0.35 points at 38.55 compared with spot closing of 38.20. The number of contracts traded was 25,300.

DLF September 2013 futures last traded at a premium of 1.50 points at 149.90 compared with spot closing of 148.40. The number of contracts traded was 16,933.

IDFC September 2013 futures last traded at a premium of 0.35 points at 95.05 compared with spot closing of 94.70. The number of contracts traded was 21,959.

Yes Bank September 2013 futures were at a premium of 2.35 points at 283.35 compared with spot closing of 281.00. The number of contracts traded was 29,335. 

ICICI Bank September 2013 futures last traded at a discount of 2.55 points at 950.40 compared with spot closing of 952.95. The number of contracts traded was 28,029.

Among Nifty calls, 6,000 SP from the Sep month expiry was the most active call with an addition of 0.17 million open interest.

Among Nifty puts, 5,300 SP from the Sep month expiry was the most active put with contraction  of 0.35 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (4.46mn) and that for Puts was at 5,300 SP (6.23 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5916.53 -- Pivot Point 5866.17 -- Support - 5800.33.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.50 for September month contract.

The top five scrips with highest PCR on OI were, Mcleodruss 19.45, CESC 5.50, HCL Tech 2.20, Finan Tech 1.96, and Coal India 1.73.

Among most active underlying, SBI witnessed an addition of 0.03 million of Open Interest in the Sep month futures contract followed by United Spirits contraction of 0.04 million Open Interest in the near month contract; ICICI Bank witnessed an addition of 0.61 million of Open Interest in the Sep month futures. Also, Reliance Industries witnessed an addition of 0.06 million in Open Interest in the Sep month contract and HDFC witnessed an addition of 0.25 million in Open Interest in the near month futures contract