Nifty ends below 5850 mark on disappointing WPI data

Nifty made a negative close on Monday despite a strong start on getting a disappointing WPI inflation data. The benchmark that once looked all set to cross the crucial psychological level of 6000 supported by strength in rupee and other global market cues, lost all its traction in noon trade after the inflation numbers were announced. The annual rate of inflation, based on monthly WPI, stood at 6.10% (provisional) for the month of August, 2013 (over August, 2012) as compared to 5.79% (provisional) for the previous month and 8.01% during the corresponding month of the previous year. The trade remained volatile though there was a good bounce back in the banking stocks in the final hours but the major drag in one of its constituent Ranbaxy, weighed heavily and led the index end in red. Ranbaxy ended lower by 30.03% or 137.30 points at 319.90 after USFDA issued an import alert for drugs manufactured at its plant in Mohali. Nifty future of September expiry closed at 5,860.10, down by 15.80 points or 0.27%. The contract witnessed an open interest addition of 6,69,450.

NSE sectoral indices made a mixed closing. CNX FINANCE surged by 1.29%, CNX PSE was up by 0.46%, CNX FMCG was higher by 0.44%, CNX Auto was up by 0.45% and CNX SERVICE gained 0.31%. On the other hand, CNX PHARMA plunged by 2.48%, CNX REALTY lost 2.33%, CNX IT slumped by 1.90%, CNX METAL declined by 1.20%, CNX COMMODITIES lost 0.72% and CNX MEDIA was down by 0.40%. The India VIX increased by 1.87% at 28.82 as compared to its previous close of 28.29 on Friday. The 50-share CNX Nifty lost 10.05 points to settle at 5,840.55.

Nifty September 2013 futures closed at 5862.25 on Monday at a premium of 21.70 points over spot closing of 5,840.55, while Nifty October 2013 futures ended at 5905.75 at a premium of 65.20 points over spot closing. Nifty September futures saw contraction of 0.50 million (mn) units taking the total outstanding open interest (OI) to 16.81 mn units. The near month September 2013 derivatives contract will expire on September 26, 2013.

From the most active contracts, DLF September 2013 futures last traded at a premium of 0.60 points at 154.50 compared with spot closing of 153.90. The number of contracts traded was 17,859.

Tata Motors September 2013 futures last traded at a premium of 1.80 points at 332.35 compared with spot closing of 330.55. The number of contracts traded was 13,348.

Tata Steel September 2013 futures last traded at a premium of 0.95 points at 293.60 compared with spot closing of 292.65. The number of contracts traded was 14,480.

Yes Bank September 2013 futures were at a premium of 1.90 points at 293.85 compared with spot closing of 291.95. The number of contracts traded was 28,689. 

ICICI Bank September 2013 futures last traded at a discount of 1.05 points at 968.95 compared with spot closing of 970.00. The number of contracts traded was 27,421.

 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 an addition of 0.10 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (4.77 mn) and that for Puts was at 5,300 SP (6.63 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5932.48 -- Pivot Point 5865.32 -- Support -- 5773.38.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.48 for September month contract.

The top five scrips with highest PCR on OI were, Mcleodruss 14.41, CESC 5.50, FinanTech 1.89, Coal India 1.87 and Hero MotoCorp 1.62.

Among most active underlying, SBI witnessed a contraction of 0.6 million in Open Interest in the Sep month futures contract followed by RANBAXY with addition of 2.63 million Open Interest in the near month contract; AXIS BANK witnessed a contraction of 0.23 million of Open Interest in the Sep month futures. Reliance Industries witnessed a contraction of 0.19 million in Open Interest in the Sep month contract and ICICI BANK witnessed contraction of 0.11 million in Open Interest in the near month futures contract