Nifty ends marginally in green to snap 2-day losing streak

Nifty snapped two-day losing streak and ended flat with a positive bias, though not much above its last session's close at 5,892 as gains in auto shares helped offset losses in IT majors.

Nifty opened in the red as sentiments remained down-beat on report that the country’s crude oil import bill jumped 9.5 percent to Rs 3,47,432 crore in the first five months of the current fiscal on account of sharp depreciation of the rupee against the US dollar. A bout of volatility was witnessed as index reversed initial losses and hit fresh intraday high in late morning trades as sentiments turned sanguine after the Department of Economic Affairs Secretary (DEA) Arvind Mayaram said that there is no room for fear of rupee tanking again, when US Federal Reserve decides on tapering of its stimulus programme. Paring all its initial gains, index entered slightly into red terrain in noon deals as sentiments remained jittery, however, the losses remained capped as Indian rupee, after a weak start, made a sharp pull back and strengthened by around 10 paise to trade 62.50 per dollar mark on the back of dollar sale by custodian banks. In mid-afternoon trade, indices retained positive zone as European stocks edged higher in early trade ahead of the reports on German business confidence and US home prices.In last leg off trade, index were unable to post any substantial gains and remained range-bound, as there was not much to support the indices on upside. On the contrary, there was some disappointment in India Inc after the government said that it was not planning any special stimulus for the corporate sector to tide over the current economic woes.

The banking gauge came under pressure in early deals after Moody's downgraded its outlook on the PSU major State Bank of India’s (SBI) financial strength rating to ‘negative’ from ‘stable’. Earlier, Fitch had downgraded ratings of Indian Bank, Punjab National Bank and Bank of Baroda on expectations of a further deterioration in asset quality. SBI recovered from the lows of the day and but still closed lower by about half a percent.

NSE sectoral indices made a green closing. CNX Auto surged by 1.17%, CNX Media up by 1.09%, CNX Infra up by 0.60%, CNX Pharma up by 0.27% and CNX ENERGY up by 0.18%. On the other hand, CNX Energy down by 1.13%, CNX PSU Bank down by 0.78%, CNX IT down by 0.39%, CNX Realty down by 0.22%, and CNX Service down by 0.07% there were the loser on sectoral indices.

The India VIX decreased by 1.11% at 26.72 as compared to its previous close of 27.02 on Monday. The 50-share CNX Nifty gained 2.70 points or 0.05% to settle at 5,892.45.

Nifty September 2013 futures closed at 5914.35 on Tuesday at a premium of 21.90 points over spot closing of 5,892.45, while Nifty October 2013 futures ended at 5967.45 at a premium of 75.00 points over spot closing. Nifty September futures saw contraction of 1.04 million (mn) units taking the total outstanding open interest (OI) to 13.67 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 0.85 points at 140.65 compared with spot closing of 139.80. The number of contracts traded was 21,370.

Yes Bank September 2013 futures last traded at a premium of 1.45 points at 319.85 compared with spot closing of 318.40. The number of contracts traded was 37,369.

ICICI Bank September 2013 futures were at a premium of 2.35 points at 948.25 compared with spot closing of 945.90. The number of contracts traded was 23,793. 

Reliance Industries September 2013 futures last traded at a premium of 2.65 points at 877.30 compared with spot closing of 874.65. The number of contracts traded was 19,446.

Axis Bank September 2013 futures last traded at a premium of 3.90 points at 1029.90 compared with spot closing of 1026.00. The number of contracts traded was 26,948.

Among Nifty calls, 6,000 SP from the Sep month expiry was the most active call with an addition of 0.79 million open interest.

Among Nifty puts, 5,700 SP from the Sep month expiry was the most active put with an addition of 0.66 million open interest.

The maximum OI outstanding for Calls was at 6,000 SP (6.43 mn) and that for Puts was at 5,700 SP (6.23 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5935.72 -- Pivot Point 5895.13 -- Support -- 5851.87.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.54 for September month contract.

The top five scrips with highest PCR on OI were, Mcleodruss 10.24, CESC 4.33, Finan Tech 1.85, Coal India 1.82 and Gail 1.73.

Among most active underlying, SBI witnessed contraction of 1.42 million in Open Interest in the Sep month futures contract followed by United Spirits with contraction of 2.05 million Open Interest in the near month contract; ICICI Bank witnessed contraction of 0.71 million of Open Interest in the Sep month futures. Reliance Industries witnessed a contraction of 0.73 million in Open Interest in the Sep month contract and Axis Bank witnessed contraction of 0.78 million in Open Interest in the near month futures contract.