Nifty manages to hold 5,850 amid cautious sentiments

Nifty witnessed some buying activity in the last half an hour of trade and hit fresh intraday high before closing at 5,850 level. Technology, metals, FMCG and auto led the upmove while realty and power remain subdued. The index is expected to remain choppy ahead of the US Fed and RBI policy meet.

Continuing their cautious run, nifty edged lower after oscillating between positive and negative zone in early trade as investors opted to remain on sidelines ahead of the Reserve Bank of India’s (RBI) monetary policy review and US Federal Reserve meeting. Sentiments also remained dampened after Indian rupee weakened in early trades tracking the non-deliverable forwards (NDF) market. The rupee was trading at Rs 63.38 compared with previous close of Rs 62.85 per dollar. Volatility continued as index trimmed losses and hovered in the negative terrain after hitting fresh intraday low in late morning trade. Selling was mainly witnessed in rate sensitive stocks such as banks and realty as investors remained cautious in wake of disappointing WPI inflation numbers for August released yesterday. In the early afternoon trade, index regained its positive terrain and hit fresh intraday high on back of slight recovery in rupee against dollar. The rupee was trading at Rs 63.19 compared with previous close of Rs 62.85 per dollar. A bout of volatility was witnessed as index once again slipped into the red in afternoon trade as European markets edged lower in early trades. In last leg of trade, Index witnessed decent pullback to get back to its positive terrain supported by buying in software and technology counters.

NSE sectoral indices made a mixed closing. CNX IT surged by 1.71%, CNX MNC was up by 1.03%, CNX Metal was higher by 0.85%, CNX FMCG was up by 0.67% and CNX Auto gained 0.65%. On the other hand, CNX PSU Bank plunged by 1.39%, CNX Finance lost 0.89%, CNX PSE declined by 0.77%,  CNX Energy slumped by 0.75%, CNX Infra lost 0.69% and CNX Realty was down by 0.66%.

The India VIX decreased by 3.09% at 27.93 as compared to its previous close of 28.82 on Monday. The 50-share CNX Nifty gained 9.65 points or 0.17% to settle at 5,850.20.

Nifty September 2013 futures closed at 5880.50 on Tuesday at a premium of 30.30 points over spot closing of 5,850.20, while Nifty October 2013 futures ended at 5925.55 at a premium of 75.35 points over spot closing. Nifty September futures saw contraction of 0.84 million (mn) units taking the total outstanding open interest (OI) to 15.96 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 0.90 points at 154.60 compared with spot closing of 153.70. The number of contracts traded was 9,924.

Tata Steel September 2013 futures last traded at a premium of 1.10 points at 290.20 compared with spot closing of 289.10. The number of contracts traded was 15,424.

Yes Bank September 2013 futures were at a premium of 1.55 points at 302.15 compared with spot closing of 300.60. The number of contracts traded was 22,752. 

ICICI Bank September 2013 futures last traded at a premium of 3.70 points at 967.60 compared with spot closing of 963.90. The number of contracts traded was 15,083.

Ranbaxy Laboratories September 2013 futures last traded at a premium of 3.20 points at 332.15 compared with spot closing of 328.95. The number of contracts traded was 18,587. Among Nifty calls, 6,000 SP from the Sep month expiry was the most active call with an addition of 0.46 million open interest.

Among Nifty puts, 5,300 SP from the Sep month expiry was the most active put with an addition of 0.12 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (5.12 mn) and that for Puts was at 5,300 SP (6.28 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5870.37 -- Pivot Point 5837.63 -- Support -- 5817.47.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.51 for September month contract.

The top five scrips with highest PCR on OI were, Mcleodruss 13.41, CNXIT 7.00,CESC 5.50, Coal India 1.99 and FinanTech 1.85.

Among most active underlying, SBI witnessed a marginally contraction in Open Interest in the Sep month futures contract followed by United Spirits with contraction of 0.21 million Open Interest in the near month contract; ICICI Bank witnessed a contraction of 0.04 million of Open Interest in the Sep month futures. Reliance Industries witnessed a contraction of 0.02 million in Open Interest in the Sep month contract and Axis Bank witnessed contraction of 0.14 million in Open Interest in the near month futures contract.