Nifty closes near the lowest point for the 5th straight session

No respite on Dalal Street as the nifty ends the day with deep cuts for the 5th straight session below 6,100 levels on selling by overseas funds in blue-chips amid a plummeting rupee. Nifty edged past the lowest level in more than 3 weeks in early trades on concerns that Federal Reserve may reduce monetary stimulus for the US economy sooner than expected after latest data showed better than expected US October jobs report. Weakness continued on street after it pared initial losses in late morning as the investor sentiments remained dampened after the government put investments from Cyprus under tax lens. The Finance Ministry has named Cyprus as a notified jurisdictional area with a view to check tax evasion. A weakening rupee which breached the 63 level mark against the dollar also added pessimistic sentiments.

In the afternoon session, index pared substantial portion of its losses after October’s Export data surprised investors positively, by jumping 13.47% at $27.27 billion and leaving country’s trade deficit in at $10.56 billion as compared to $20.21 billion a year ago. Meanwhile, bit of bargain hunting which got initiated at lower levels also aided some recovery. The final moments of trade turned catastrophic when suddenly selling intensified, dragging the market lower on getting some weak earnings announcement. PSU lender Central Bank of India reported net loss of Rs 1508.74 crore for the second quarter as compared to a net profit of Rs 329.92 crore for the Q2FY13. Tata Chemical’s net too declined by 48%.

NSE sectoral indices made a red closing; CNX Realty down by 3.07%, CNX PSU Bank down by 2.07%, CNX Infra down  by 1.88%, CNX PSE down  by 1.75% and CNX Bank down  by 1.75%. On the other hand, CNX Media up by 1.96%, CNX Pharma up by 0.37% and CNX IT up by 0.07% were the gainers on index.
The India VIX increased by 1.73 % at 19.98 as compared to its previous close of 19.64 on Thursday. The 50-share CNX Nifty decreased by 61.95 points or 1.01% to settle at 6,078.80.

Nifty November 2013 futures closed at 6126.85 on Monday at a premium of 48.05 points over spot closing of 6078.80, while Nifty December 2013 futures ended at 6177.75 at a premium of 98.95 points over spot closing. Nifty November futures saw contraction of 0.74 million (mn) units taking the total outstanding open interest (OI) to 19.58 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 0.60 points at 148.40 compared with spot closing of 147.80. The number of contracts traded was 11,570.

Tata Motors November 2013 futures were at a premium of 1.80 points at 379.30 compared with spot closing of 377.50. The number of contracts traded was 27,629. 

Tata Steel November 2013 futures were at a premium of 1.90 points at 362.65 compared with spot closing of 360.75. The number of contracts traded was 23,556. 

Yes Bank November 2013 futures were at a premium of 2.80 points at 335.65 compared with spot closing of 332.85. The number of contracts traded was 21,829. 

Reliance Industries November 2013 futures were at a premium of 6.35 points at 871.30 compared with spot closing of 864.95. The number of contracts traded was 17,734. 

Among Nifty calls, 6,300 SP from the November month expiry was the most active call with an addition of 0.61 million open interest.

Among Nifty puts, 6,000 SP from the November month expiry was the most active put with  an addition of 0.26 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (5.16 mn) and that for Puts was at 6,000 SP (4.57 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6124.38-- Pivot Point 6096.07-- Support -- 6050.48. The Nifty Put Call Ratio (PCR) OI wise, stood at 1.12 for November month contract. The top five scrips with highest PCR on OI were, Grasim 2.28, Divislab 1.63, Glenmark 1.56, Infosys 1.24,  and Tech Mahindra 1.21.

Among most active underlying, SBI witnessed an addition of 0.19 million of Open Interest in the November month futures contract followed by United Spirits with an addition of 0.16 million of Open Interest in the near month contract; Reliance Industries witnessed an addition of 0.91 million of Open Interest in the November month futures. ICICI Bank witnessed an addition of 0.35 million in Open Interest in the November month contract and TCS witnessed addition of 0.01 million in Open Interest in the near month futures contract.