Nifty ended almost flat ahead of FOMC, RBI meet next week

Nifty ended almost flat on Friday after consolidation for the third consecutive session ahead of major triggers next week-FOMC meet and RBI policy. Nifty made a negative start on Friday tracking sluggish global cues. Volatility ruled the roost on street, index took U-turn and entered into green terrain in morning trade as sentiments remained up-beat with the industrial production rebounding to 2.6% in July from a year earlier, much better than the general street expectation of marginal contraction-to-flat numbers and far better than -2.2% figure of the last month. In other development, retail or CPI inflation, eased slightly to 9.52% in August over the previous month’s 9.64%, following softening in prices of almost all commodities, except vegetables. In late Morning trade, index reversed intraday gains after Prime Minister's Economic Advisory Council (PMEAC) sharply trimmed India's GDP growth forecast to 5.3% for the year ending 31 March 2014 (FY 2014) from earlier estimate of 6.4% and said that the current stance of monetary policy has to continue until stability in the rupee is achieved. Index regained in positive zone in early afternoon trade on strong rebound of the rupee against the dollar. Once again index slipped into the red in afternoon trade as rupee weakened against the dollar. Index regained positive zone in late afternoon trade, but again capitulate to selling pressure by the end of the trade. Index ended in red, but held above psychological 5850 levels.

Sectoral indices on the NSE made a red close. CNX Realty was up by 2.82%, CNX PSE was up by 1.90% , CNX Infra was up by 1.90%, CNX PSU Bank was up by 1.38% and CNX Auto was up by 0.74 % were remained gainers in the trade. While, CNX IT was down by 1.18%, CNX FMCG was down by 1.14%, CNX Service was down by 0.25%, CNX MNC was down by 0.24% and CNX Finance was down by 0.01% were remained losers in the trade.The India VIX witnessed contraction of 4.77% at 28.29 as compared to its previous close of 29.71 on Thursday. The 50-share CNX Nifty lost 0.10 points to settle at 5,850.60.

Nifty September 2013 futures closed at 5875.90 on Friday at a premium of 25.30 points over spot closing of 5,850.60, while Nifty October 2013 futures ended at 5919.50 at a premium of 68.90 points over spot closing. Nifty September futures saw contraction of 1.61 million (mn) units taking the total outstanding open interest (OI) to 17.31 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 0.30 points at 39.85 compared with spot closing of 39.55. The number of contracts traded was 12,215.

Reliance Communications September 2013 futures last traded at a premium of 0.70 points at 146.35 compared with spot closing of 145.65. The number of contracts traded was 12,911.

DLF September 2013 futures last traded at a premium of 0.75 points at 157.65 compared with spot closing of 156.90. The number of contracts traded was 15,424.

Tata Steel September 2013 futures last traded at a premium of 3.10 points at 300.65 compared with spot closing of 297.55. The number of contracts traded was 15,757.

Yes Bank September 2013 futures were at a premium of 3.30 points at 283.60 compared with spot closing of 280.30. The number of contracts traded was 28,965.  Among Nifty calls, 6,000 SP from the Sep month expiry was the most active call with an addition of 0.13 million open interest.

Among Nifty puts, 5,300 SP from the Sep month expiry was the most active put with an addition of 0.29 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (4.59 mn) and that for Puts was at 5,300 SP (6.53 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5882.3 -- Pivot Point 5852.6 -- Support - 5820.9.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.52 for September month contract.

The top five scrips with highest PCR on OI were, Mcleodruss 14.96, CESC 5.50, Coal India 1.79, Finan Tech 1.77 and Ind Hotel 1.59.

Among most active underlying, SBI witnessed  marginally an  additional in Open Interest in the Sep month futures contract followed by United Spirits contraction of 0.01 million Open Interest in the near month contract; ICICI Bank witnessed an addition of 0.40 million of Open Interest in the Sep month futures. Also, Reliance Industries witnessed an addition of 0.09 million in Open Interest in the Sep month contract and HDFC witnessed contraction of 0.04million in Open Interest in the near month futures contract