Nifty closes near the lows for the fourth consecutive day

Nifty edged lower in earlier deals as faster than expected US economic growth fueled concerns the Federal Reserve may reduce monetary stimulus for the US economy sooner. Selling continued on the street in the late morning session and the index hit one and half-week low as domestic sentiments were already jittery as global credit rating agency Standard and Poor's had warned that it may lower India's rating to speculative grade from investment grade next year. A weak rupee aided by strong dollar on European Central Bank's rate cut decision, also affected the domestic sentiment.

In the afternoon trade, index extended losses on weak quarterly numbers that added pressure on street , shares of banking major PNB tanked after it reported net profit fall of huge 52.6 percent year-on-year to Rs 505 crore in the September quarter because of higher provisioning for bad loans. United Breweries too slumped after reporting net loss of Rs 18.57 crore for the second quarter ended September 30, 2013. Nifty throughout the day traded near the lows and never seemed to recover, finally closed near the lowest point of the day for the fourth consecutive day as investors booked profits on the last trading day of the week.

NSE sectoral indices made a red closing; CNX Realty up by 1.50%, CNX Infra up by 0.72%, CNX Metal up by 0.30% and CNX Pharma up by 0.13%. On the other hand, CNX Media down by 2.16%, CNX Finance by 1.83%, CNX Bank down by 1.28%, CNX Service down by 0.97% and CNX Energy down by 0.90% there were losers on index.

The India VIX decreased by 1.15% at 19.64 as compared to its previous close of 19.87 on Thursday. The 50-share CNX Nifty decreased by 46.50 points or 0.75% to settle at 6,140.75.

Nifty November 2013 futures closed at 6186.60 on Friday at a premium of 45.85 points over spot closing of 6140.75, while Nifty December 2013 futures ended at 6237.35 at a premium of 96.60 points over spot closing. Nifty November futures saw contraction of 0.50 million (mn) units taking the total outstanding open interest (OI) to 20.33 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 1.00 points at 153.50 compared with spot closing of 152.50. The number of contracts traded was 17,110.

Tata Motors November 2013 futures were at a discount of 0.20 points at 388.80 compared with spot closing of 389.00. The number of contracts traded was 29,305. 

Tata Steel November 2013 futures were at a premium of 2.20 points at 358.10 compared with spot closing of 355.90. The number of contracts traded was 20,824. 

Yes Bank November 2013 futures were at a premium of 2.90 points at 356.50 compared with spot closing of 353.60. The number of contracts traded was 25,012. 

Ranbaxy Laboratories November 2013 futures were at a premium of 5.20 points at 425.65 compared with spot closing of 420.45. The number of contracts traded was 17,548. 

Among Nifty calls, 6,300 SP from the November month expiry was the most active call with contraction of 0.09 million open interest.

Among Nifty puts, 6,000 SP from the November month expiry was the most active put with  contraction of 0.25 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (4.55 mn) and that for Puts was at 6,000 SP (4.30 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6176.95-- Pivot Point 6148.95-- Support -- 6112.75. The Nifty Put Call Ratio (PCR) OI wise, stood at 1.18 for November month contract. The top five scrips with highest PCR on OI were, Grasim 2.27, Infosys 1.23, Glenmark 1.17, Tech Mahindra 1.12 and JSW Steel 1.04.

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 an addition of 0.17 million of Open Interest in the near month contract; Reliance Industries witnessed an addition of 0.57 million of Open Interest in the November month futures. Tata Consultancy Services witnessed an addition of 0.08 million in Open Interest in the November month contract and ICICI Bank witnessed addition of 0.20 million in Open Interest in the near month futures contract.