Nifty barely manages to hold 6200 amid a seesaw session

Nifty managed to hold the 6200 level while ending a lackluster session on a flat-to-negative note as investors showed interest in beaten down stocks from broader markets.

A bout of volatility was seen in early trade as nifty opened in the negative as the US markets ended flat overnight shrugging off the report that existing home sales fell 1.9 percent to a seasonally adjusted annual rate of 5.29 million in September. Moreover, Asian markets were trading mostly in the red at this point of time with Shanghai Composite declining over half a percent, led by property developers, on concern that the government may introduce measures to contain housing prices after they climbed in all but one city the government tracks. Volatility continued on street as index moved slightly higher after seeing alternate bouts of rise and fall late-morning trade as Investors across the globe remained on sidelines ahead of US jobs data that could shape expectations as to whether the Federal Reserve will start withdrawing stimulus this year. Sentiments got some support as the Planning Commission deputy chief, Chairman of the Economic Advisory Council to Prime Minister C Rangarajan’s statement that Current Account Deficit (CAD) will go down well below $70 billion this fiscal. There is some good news for the manufacturing sector, as the Commerce and Industry Ministry is working on a proposal on giving interest subsidy to the sector and the Department of Industrial Policy and Promotion (DIPP) is considering an interest subvention of 3-4 percent, which could help in shoring up growth in the sector. However, the gains on the up -side remained capped as the rupee weakened in early trades due to month-end dollar demand from importers. The rupee was trading at Rs 61.75 compared with previous close of Rs 61.52 per dollar.

In the afternoon trade, volatility continued as index once again drifted lower reciprocating the negative start of European markets reaching to the day’s lowest point. In last leg of trade, index, despite slipping in red for couple of times, negotiated a flattish to positive close as aggressive bulls fought back with vigor.

NSE sectoral indices made a red closing. CNX Infra up by 0.97%, CNX PSE up by 0.76%, CNX IT up 0.63%, CNX Media up 0.28% and CNX Service up 0.27%. On the other hand, CNX Realty down by 0.67% CNX Auto down by 0.45% , CNX Finance down by 0.26% , CNX FMCG down by 0.25% and CNX MNC down by 0.01% were the losers on index.

The India VIX decreased by 1.09% at 19.96 as compared to its previous close of 20.18 on Tuesday. The 50-share CNX Nifty declined by 2.15 points or 0.03% to settle at 6,202.80.

Nifty October 2013 futures closed at 6222.65 on Tuesday at a premium of 19.85 points over spot closing of 6202.80, while Nifty November 2013 futures ended at 6273.10 at a premium of 70.30 points over spot closing. Nifty October futures saw contraction of 0.22 million (mn) units taking the total outstanding open interest (OI) to 18.29 mn units. The near month October 2013 derivatives contract will expire on October 31, 2013.

From the most active contracts, RPower October 2013 futures last traded at a premium of 0.60 points at 77.00 compared with spot closing of 76.40. The number of contracts traded was 11,370.

RCom October 2013 futures last traded at a premium of 0.80 points at 155.90 compared with spot closing of 155.10. The number of contracts traded was 11,537.

Yes Bank October 2013 futures were at a premium of 3.50 points at 375.50 compared with spot closing of 372.00. The number of contracts traded was 64,554. 

Tata Steel October 2013 futures were at a premium of 1.90 points at 341.85 compared with spot closing of 339.95. The number of contracts traded was 15,138. 

Wipro October 2013 futures were at a premium of 2.55 points at 517.35 compared with spot closing of 514.80. The number of contracts traded was 12,981.  Among Nifty calls, 6,300 SP from the October month expiry was the most active call with an addition of 0.04 million open interest.

Among Nifty puts, 6,100 SP from the October month expiry was the most active put with an contraction  of 0.39 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (4.89 mn) and that for Puts was at 6,100 SP (5.89 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6222.63-- Pivot Point 6205.27-- Support -- 6190.43.

The Nifty Put Call Ratio (PCR) OI wise, stood at 1.59 for October month contract. The top five scrips with highest PCR on OI were, Ultra Cemco 2.15, Havells 1.94, L&T 1.84, Infosys 1.47 and Axis Bank 1.46.

Among most active underlying, Infosys witnessed contraction of 0.02 million of Open Interest in the October month futures contract followed by SBI with an addition of 0.12 million of Open Interest in the near month contract; United Spirits witnessed contraction of 0.23 million of Open Interest in the October month futures. Reliance Industries witnessed contraction of 0.09 million in Open Interest in the October month contract and Yes Bank witnessed an addition of 1.62 million in Open Interest in the near month futures contract.