Nifty snaps 5-day winning streak, settles below 6,300 on profit booking

Nifty came under pressure towards the end of session and closed at psychological 6,250 mark on the back of profit booking after retreating from a record high hit in the previous session amidst negative global cues. 

Nifty edged lower in early trade on concern of US Fed going for a tapering sooner than expected, as more positive economic data from the country were reported on Monday. Investor’s sentiments remained dampened with the report that foreign direct investment (FDI) inflow into the services sector, which contributes over 60 percent to India’s GDP, declined 47.5 percent to $1.19 billion during April-August. Index extended losses and hit lows in late morning trade as  sentiments also got  dented as activity in the services sector, which occupies the largest share in the Indian economy continued to contract for fourth time in a row in October. The HSBC services Purchasing Managers’ Index (PMI), compiled by Market, stood at 47.1 points in October from 44.6 points in September. Further, weak global cues also added to the pessimistic sentiments.

In afternoon trade, a bout of volatility was witnessed as index although have recovered from day’s low due to buying interest witnessed in banking and financial stocks and index heavyweights. In the foreign exchange market, the rupee reversed intraday losses against the dollar. Last leg of trade, Absence of significant positive triggers on street combined with gloomy global set-up, led to index, settled at below 6,250 levels, with a cut of over a percent.

NSE sectoral indices made a red closing. CNX Media up by 0.96%, CNX PSU Bank up by 0.42%, CNX Realty up by 0.39%, and CNX Metal up by 0.13%. On the other hand, CNX FMCG down by 2.61%, CNX Pharma down by 1.84%, CNX MNC down by 1.44%, CNX IT down by 1.13% and CNX Bank down by 0.99% there were losers on index. The India VIX increased by 2.30 % at 19.94 as compared to its previous close of 18.64 on Friday. The 50-share CNX Nifty decreased by 64.20 points or 1.02% to settle at 6,253.15.

Nifty November 2013 futures closed at 6298.80 on Tuesday at a premium of 45.65 points over spot closing of 6253.15, while Nifty December 2013 futures ended at 6345.20 at a premium of 92.05 points over spot closing. Nifty November futures saw contraction of 0.73 million (mn) units taking the total outstanding open interest (OI) to 22.47 mn units. The near month November 2013 derivatives contract will expire on November 28, 2013.

From the most active contracts, DLF November 2013 futures last traded at a premium of 1.20 points at 161.95 compared with spot closing of 160.75. The number of contracts traded was 16,940.

Tata Steel November 2013 futures were at a premium of 2.65 points at 341.65 compared with spot closing of 339.00. The number of contracts traded was 13,012. 

Tata Motors November 2013 futures were at a premium of 2.50 points at 397.85 compared with spot closing of 395.35. The number of contracts traded was 16,778. 

Yes Bank November 2013 futures were at a premium of 3.50 points at 379.00 compared with spot closing of 375.50. The number of contracts traded was 18,470. 

ICICI Bank November 2013 futures were at a premium of 12.05 points at 1106.25 compared with spot closing of 1094.20. The number of contracts traded was 25,979Among Nifty calls, 6,400 SP from the November month expiry was the most active call with an addition of 0.31 million open interest.

Among Nifty puts, 6,000 SP from the November month expiry was the most active put with an addition of 0.06 million open interest.

The maximum OI outstanding for Calls was at 6,400 SP (3.58 mn) and that for Puts was at 6,000 SP (4.07 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6290.5-- Pivot Point 6267.4-- Support -- 6230.05. The Nifty Put Call Ratio (PCR) OI wise, stood at 1.31 for November month contract. The top five scrips with highest PCR on OI were, Grasim 4.54, Srtransfin 3.00, Jain irrigation 1.79, Divislab 1.75, and Havells 1.50.

Among most active underlying, SBI witnessed contraction of 0.06 million of Open Interest in the November month futures contract followed by United Spirits with contraction of 0.02 million of Open Interest in the near month contract; Reliance Industries witnessed contraction of 0.11 million of Open Interest in the November month futures. Tata Consultancy Services witnessed contraction of 0.03 million in Open Interest in the November month contract and ICICI Bank witnessed addition of 0.82 million in Open Interest in the near month futures contract.