Nifty ends flat amid seesaw trade; closes above 5900

Nifty ended flat above the crucial 5,900 for a second consecutive session on Monday as software service exporters rose ahead of their upcoming earnings results although sentiment was broadly cautious due to the continued U.S. budget standoff. 

Nifty opened on a negative note in early trade tracking weak Asian markets on concerns over US debt limit and government shutdown. Weakness continued on street in late morning. Sentiments got dampened as the Rupee opened slightly weak due to dollar demand from corporates. The partially convertible rupee was trading at 61.80 per dollar against the Friday’s close of 61.44 on the Interbank Foreign Exchange. Some cautiousness also came in after study by CII Ascon showed that industrial growth in the three months ended September 30, remained dismal despite the government introducing a number of reform measures to boost the economy. Investors also fretted ahead of the Infosys quarterly results to be announced later this week that will kick start the earnings season for July-September quarter. 

Index continued its weak trade in the afternoon session on account of selling pressure witnessed in banking, PSU and oil and gas stocks. In last leg of trade, index staged strong intraday recovery on account of buying which got triggered at lower levels.

NSE sectoral indices made a green closing. CNX IT up by 1.31%, CNX Pharma 1.07%, CNX Media up by 1.04%, CNX Metal up by 0.97% and  CNX MNC up by 0.72%. On the other hand, CNX Bank down by 1.13%, CNX Finance down by 0.74%,  CNX Infra down by 0.32% and CNX Energy down by 0.26% were the losers.

The India VIX increased by 2.68 % at 26.83 as compared to its previous close of 26.13 on Thursday. The 50-share CNX Nifty declined by 1.15 points or 0.02 % to settle at 5,906.15.

Nifty October 2013 futures closed at 5943.20 on Monday at a premium of 37.05 points over spot closing of 5,906.15, while Nifty November 2013 futures ended at 5985.95 at a premium of 79.80 points over spot closing. Nifty October futures saw contraction of 1.40 million (mn) units taking the total outstanding open interest (OI) to 16.03 mn units. The near month October 2013 derivatives contract will expire on October 31, 2013.

From the most active contracts, DLF October 2013 futures last traded at a premium of 1.10 points at 138.95 compared with spot closing of 137.85. The number of contracts traded was 9,719.

Tata Motors October 2013 futures last traded at a premium of 2.65 points at 351.15 compared with spot closing of 348.50. The number of contracts traded was 11,448.

Tata Steel October 2013 futures were at a premium of 1.55 points at 303.00 compared with spot closing of 301.45. The number of contracts traded was 16,972. 

Yes Bank October 2013 futures last traded at a premium of 2.70 points at 318.45 compared with spot closing of 315.75. The number of contracts traded was 19,235.

Ranbaxy Laboratories October 2013 futures were at a premium of 4.40 points at 384.30 compared with spot closing of 379.90. The number of contracts traded was 13,459. 

Among Nifty calls, 6,100 SP from the October month expiry was the most active call with an addition of 0.13 million open interest.

Among Nifty puts, 5,700 SP from the October month expiry was the most active put with an addition of 0.32 million open interest.

The maximum OI outstanding for Calls was at 6,100 SP (4.69 mn) and that for Puts was at 5,700 SP (4.87 mn).

The respective Support and Resistance levels of Nifty are: Resistance 5936.82 -- Pivot Point 5881.33 -- Support -- 5850.67

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, Havells 6.75, Opto Circui 1.78, Siemens 1.75, Ultra Cemco 1.71 and Finantech 1.53.Among most active underlying, Tata Motors witnessed  marginally  contraction in Open Interest in the October month futures contract followed by United Spirits with an addition of 0.03 million Open Interest in the near month contract; Infosys witnessed addition of 0.20 million of Open Interest in the October month futures. Reliance Industries witnessed an addition of 0.37 million in Open Interest in the October month contract and Yes Bank witnessed an addition of 0.15 million in Open Interest in the near month futures contract.