Nifty closes near day's low on profit booking

Extending its losing run to the second day, nifty ended near the day's low weighed down by profit taking in financials and index heavyweight after recent gains. A bout of volatility was witnessed in early trade as index regained positive terrain after slipping into the red mainly on buying witnessed in IT after the global IT major Cognizant Technology Solutions Corp reported a better-than-expected 22 percent rise in revenue. Investor’s sentiments also got some support after Finance Minister P Chidambaram’s confidence that India’s current account deficit (CAD) will be contained below $60 billion this financial year as against an earlier estimate of $70 billion.

Volatility continued on street as the index reversed intraday gains and hit their lowest levels in more than a week in afternoon, as the weakness in rupee that remained lower since morning and once again breached the 62 per dollar mark on concern of state-owned refiners resuming dollar purchases. In last leg of trade, profit booking in index heavyweights dragged the index lower and despite repeated attempts, markets did not recover and closed at the lowest point of the day. Profit booking reportedly by FIIs led the index lower from its all time highs.

CNX IT up by 1.36%, CNX Pharma up by 0.86%, CNX PSE up by 0.21%, and CNX Infra up by 0.08%. On the other hand, CNX PSU Bank down by 3.60%, CNX Realty down by 1.91%, CNX Bank down by 1.79%, CNX Finance down by 1.72% and CNX Media down by 1.40% there were losers on index.

The India VIX increased by 1.55% at 20.25 as compared to its previous close of 19.94 on Friday. The 50-share CNX Nifty decreased by 38.00 points or 0.61% to settle at 6,215.15.

Nifty November 2013 futures closed at 6259.15 on Wednesday at a premium of 44.00 points over spot closing of 6215.15, while Nifty December 2013 futures ended at 6306.15 at a premium of 91.00 points over spot closing. Nifty November futures saw contraction of 0.88 million (mn) units taking the total outstanding open interest (OI) to 21.58 mn units. The near month November 2013 derivatives contract will expire on November 28, 2013.

From the most active contracts, BHEL November 2013 futures last traded at a discount of 1.00 points at 138.70 compared with spot closing of 139.70. The number of contracts traded was 25,670.

Reliance Communications November 2013 futures were at a premium of 1.35 points at 147.25 compared with spot closing of 145.90. The number of contracts traded was 12,187. 

DLF November 2013 futures were at a premium of 0.55 points at 156.30 compared with spot closing of 155.75. The number of contracts traded was 13,838. 

Tata Motors November 2013 futures were at a premium of 2.65 points at 394.15 compared with spot closing of 391.50. The number of contracts traded was 12,202. 

Yes Bank November 2013 futures were at a premium of 1.80 points at 370.75 compared with spot closing of 368.95. The number of contracts traded was 15,911

Among Nifty calls, 6,400 SP from the November month expiry was the most active call with an addition of 0.33 million open interest.

Among Nifty puts, 6,000 SP from the November month expiry was the most active put with an addition of 0.28 million open interest.

The maximum OI outstanding for Calls was at 6,400 SP (3.91 mn) and that for Puts was at 6,000 SP (4.36 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6253.67-- Pivot Point 6231.18-- Support -- 6192.67. The Nifty Put Call Ratio (PCR) OI wise, stood at 1.32 for November month contract. The top five scrips with highest PCR on OI were, Srtransfin 3.00, Grasim 1.33, Havells 1.20, Bharat Forg 1.14 and JISLJALEQS 1.12.

Among most active underlying, SBI witnessed an addition  of 0.01million of Open Interest in the November month futures contract followed by United Spirits with an addition of 0.09 million of Open Interest in the near month contract; Reliance Industries witnessed an addition of 0.16 million of Open Interest in the November month futures. Tata Consultancy Services witnessed an addition of 0.06 million in Open Interest in the November month contract and ICICI Bank witnessed addition of 0.04 million in Open Interest in the near month futures contract.