Nifty ends in red on profit booking

Nifty ended marginally lower on Thursday despite opening higher as index heavyweights pared most of the early gains and selling pressure was also observed in IT majors as dollar weakened against local as well as global currencies. 

Nifty opened higher in early deals on expectations that the US Federal Reserve would delay its tapering due to the weak US jobs data for September. Investor’s sentiments were firm as the rupee appreciated against the US dollar. The rupee was trading at Rs 61.45 compared with previous close of Rs 61.59 per dollar. Sentiments also got some support on report that foreign institutional investors (FIIs) bought shares worth net Rs 644.80 crore on October 23, 2013. Index maintained strong momentum in late morning trades mainly on buying witnessed in telecom stocks such as Bharti Airtel, Idea Cellular and Reliance Communications. The telecom stocks edged higher after the Telecom Regulatory Authority stuck to its earlier stance on pricing of spectrum, which calls for up to 60 percent cut in the reserve price of spectrum in the upcoming third round of auction. Some support also came in from buying in banking stocks after Finance Ministry finalized the Rs 14,000-crore capital infusion plan for public sector banks to augment their capital base and promised another tranche in the fourth quarter of the current fiscal. 

In afternoon trades, index retreated from day’s high and slipped into negative territory on account of profit booking in front line counters. Investors took note of report compiled by India Ratings and Research, which stated that the economy would grow 4.9% in the current financial year despite favourable monsoon brightening the scope for agriculture performance. In last leg of trade, index managed to close above 6,150 as investors were cautious ahead of next week's RBI monetary policy meet and monthly expiry of derivative contracts.

NSE sectoral indices made a red closing. CNX Auto up by 0.69%, CNX Finance up by 0.30%, CNX PSU Bank up 0.27%, CNX FMCG up 0.26% and CNX Bank up 0.20%. On the other hand, CNX Media down by 1.91% CNX IT down by 1.68%, CNX Realty down by 1.19%, CNX Energy down by 0.72% and CNX Metal down by 0.65% were the losers on index.

The India VIX increased by 1.42% at 20.64 as compared to its previous close of 19.96 on Wednesday. The 50-share CNX Nifty declined by 14.00 points or 0.23% to settle at 6,164.35.

Nifty October 2013 futures closed at 6173.80 on Thursday at a premium of 9.45 points over spot closing of 6164.35, while Nifty November 2013 futures ended at 6225.00 at a premium of 60.65 points over spot closing. Nifty October futures saw contraction of 0.34 million (mn) units taking the total outstanding open interest (OI) to 17.23 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 0.55 points at 159.20 compared with spot closing of 158.65. The number of contracts traded was 13,633.

Yes Bank October 2013 futures were at a premium of 1.50 points at 363.75 compared with spot closing of 362.25. The number of contracts traded was 21,048. 

L&T October 2013 futures last traded at a discount of 0.65 points at 962.70 compared with spot closing of 963.35. The number of contracts traded was 16,672.

ICICI Bank October 2013 futures were at a premium of 2.30 points at 1023.20 compared with spot closing of 1020.90. The number of contracts traded was 23,572. 

Reliance Industries October 2013 futures were at a premium of 3.90 points at 887.65 compared with spot closing of 883.75. The number of contracts traded was 19,973.  Among Nifty calls, 6,300 SP from the October month expiry was the most active call with an addition of 0.07 million open interest.

Among Nifty puts, 6,000 SP from the October month expiry was the most active put with an addition  of 0.11 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (6.00mn) and that for Puts was at 6,000 SP (5.74 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6230.22-- Pivot Point 6186.58-- Support -- 6120.72.

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, SBI witnessed contraction of 0.22 million of Open Interest in the October month futures contract followed by Infosys with an addition of 0.02 million of Open Interest in the near month contract; United Spirits witnessed contraction of 0.54 million of Open Interest in the October month futures. Reliance Industries witnessed contraction of 0.10 million in Open Interest in the October month contract and Yes Bank witnessed contraction of 0.39 million in Open Interest in the near month futures contract.