Nifty makes a flat closing after a volatile day of trade

Nifty made a flat ending on Friday with a negative bias, though it was a volatile day of trade and the index suffered some sell-off in last hours ahead of the weekend and traders also looked taking a cautious approach ahead of the start of earnings season next week. Further, there was some concern related to the US government shutdown prolonging to next week and the impasse extending to upcoming debates to lift the debt ceiling. Meanwhile, the index made a soft start but soon recovered with buying appearing in rate sensitive auto and consumer durables stocks after finance ministry said that it will provide additional capital to state-run banks, ostensibly to boost lending to sectors such as two-wheelers and consumer durables at lower interest rates. There was a sharp sell-off in morning trade after the Services PMI data was released, which stated that Indian services activities in September dropped to its lowest in over four years, coming at 44.6 in September from 47.6 in August. However, after the knee-jerk reaction the markets made a good bounce back and moved into green and improving slowly reached the high points of the day, however there was profit booking in the last leg of the trade that led the markets lower once again.

NSE sectoral indices made a mixed closing. CNX Realty up by 1.62%, CNX Auto 0.91%, CNX Metal up by 0.70%, CNX Commodities up by 0.26%, CNX FMCG up by 0.22% and CNX Energy up by 0.13%.On the other hand, CNX PSU Banks down by 0.56%, CNX Infra down by 0.46%, CNX Finance down by 0.27% and CNX Service down by 0.28% were the losers. The India VIX increased by 3.81% at  26.13 as compared to its previous close of 25.17 on Thursday. The 50-share CNX Nifty declined by 2.40 points or 0.04% to settle at 5,907.30.

Nifty October 2013 futures closed at 5950.90 on Friday at a premium of 43.60 points over spot closing of 5,907.30, while Nifty November 2013 futures ended at 5990.80 at a premium of 83.50 points over spot closing. Nifty October futures saw an addition of 0.09 million (mn) units taking the total outstanding open interest (OI) to 17.44 mn units. The near month October 2013 derivatives contract will expire on October 31, 2013.

From the most active contracts, JP Associates October 2013 futures last traded at a premium of 0.30 points at 38.00 compared with spot closing of 37.70. The number of contracts traded was 11,259.

Reliance Communications October 2013 futures last traded at a premium of 1.20 points at 148.35 compared with spot closing of 147.15. The number of contracts traded was 12,966.

DLF October 2013 futures were at a premium of 1.30 points at 140.45 compared with spot closing of 139.15. The number of contracts traded was 20,783. 

Tata Motors October 2013 futures last traded at a premium of 2.05 points at 353.05 compared with spot closing of 351.00. The number of contracts traded was 24,165.

Tata Steel October 2013 futures were at a premium of 1.90 points at 291.05 compared with spot closing of 289.15. The number of contracts traded was 15,613.Among Nifty calls, 6,100 SP from the October month expiry was the most active call with an addition of 0.85 million open interest.

Among Nifty puts, 5,700 SP from the October month expiry was the most active put with an addition of 0.19 million open interest.

The maximum OI outstanding for Calls was at 6,100 SP (4.71 mn) and that for Puts was at 5,700 SP (4.83 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5943.50 -- Pivot Point 5914.25 -- Support -- 5878.05

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.31 for October month contract.

The top five scrips with highest PCR on OI were, Hindalco 11.75, HINDUNILVR 7.00, Havells 6.25, HCL Tech 3 and SBIN 2.71.Among most active underlying, Tata Motors witnessed an addition of 0.61 million in Open Interest in the October month futures contract followed by SBI with an addition of 0.14 million Open Interest in the near month contract; Reliance Communication witnessed addition of 0.15 million of Open Interest in the October month futures. Axis Bank witnessed an addition of 0.34 million in Open Interest in the October month contract and Yes Bank witnessed an addition of 0.34 million in Open Interest in the near month futures contract.