Nifty ends at 1-month low ahead of IIP and retail inflation data

Extending its freefall to the sixth session in a row, Nifty closed the trading session near 1-month low amid volatile session as rupee approached the 64-mark against dollar, ahead of IIP and retail inflation data.

Nifty edged higher in early trades on FICCI survey noted that Indian manufacturing sector is likely to witness subdued growth in the October-December quarter of current fiscal particularly due to the concerns over high interest rates. Sentiments also got some support from the good export data announced yesterday, exports rose by 13.47 percent to $27.27 billion in October. In late morning session, a bout of volatility was witnessed on street as index pared initial gains and slipped into the red as the Investors opted to remain on sidelines ahead of important macro data such as Index of industrial production (IIP) and CPI inflation scheduled to be announced later in the day. Further, continued weakness in rupee due to dollar buying by Oil companies also added to the pessimistic sentiments.

There was a bounce back in noon trades that took the nifty out of red, however there were no major supports that could have kept the indices in green for long and selling pressure took-over and dragged the index to the day’s lowest point by the close of trade.

NSE sectoral indices made a red closing; CNX Metal down by 1.77%, CNX PSU Bank down by 1.74%, CNX Infra down by 1.67%, CNX Bank down by 1.63% and CNX Auto down  by 1.57%. On the other hand, CNX FMCG up by 0.88% and CNX Pharma up by 0.06% were the gainers on index.

The India VIX increased by 4.40% at 20.86 as compared to its previous close of 19.98 on Monday. The 50-share CNX Nifty decreased by 60.75 points or 1.00% to settle at 6,018.05.

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 0.73 million open interest.

Among Nifty puts, 6,000 SP from the November month expiry was the most active put with  an addition of 0.83 million open interest.

The maximum OI outstanding for Calls was at 6,300 SP (5.90 mn) and that for Puts was at 6,000 SP (5.30 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6080.58-- Pivot Point 6046.17-- Support -- 5983.63. 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 2.30, Divislab 1.41, Infosys 1.23, Tech Mahindra 1.21and Auro Pharma 1.16.

Among most active underlying, SBI witnessed an addition of 0.23 million of Open Interest in the November month futures contract followed by United Spirits with an addition of 0.07 million of Open Interest in the near month contract; Reliance Industries witnessed an addition of 0.49 million of Open Interest in the November month futures. ICICI Bank witnessed an addition of 0.47 million in Open Interest in the November month contract and TCS witnessed addition of 0.05 million in Open Interest in the near month futures contract.