Nifty slides below on profit booking in rate sensitive stocks

Nifty lost nearly half of its previous day’s gains on Tuesday and closed way below 6,100 levels on profit booking in mostly those stocks that rallied in the earlier session. Sentiments remained downbeat as the investors opted to remain on the sidelines ahead of November F&O expiry.

Nifty opened with negative bias early deals on Tuesday as investors booked profit after the previous session’s rally. Sluggish global cues too were dampening the sentiments with the US markets making a flat closing after a lackluster trade and traders digested the news of historic agreement regarding Iran’s controversial nuclear program as the trade progressed and remained concerned about unexpected drop in pending home sales. Moreover, Asian equity indices were exhibiting mixed trend in early trades with investors treading cautiously amid lack of fresh triggers. Investors remained on the sidelines ahead of November F&O expiry. Weakness on street in late morning weighed down on sentiments and investors booked profits in rate sensitive stocks such as auto and banking. Loss on the down side remained capped as the rupee was trading marginally strong in morning trade due to dollar selling by banks. The rupee was trading at Rs 62.43 compared with previous close of Rs 62.50 per dollar.

In absence of any buying activity in the afternoon trades, index was persistently losing ground and languished near day’s lowest point with a cut of over half a percent, below psychological 6,100 levels. Selling got intensified after European markets made a sluggish opening, with all the gauges viz. CAC, DAX and FTSE trading lower in early deals ahead of the release of US housing market and consumer confidence data. In the last leg of trade, index settled at the lowest point of the day, just above the psychological 6,050 levels.

NSE sectoral indices made a red closing; CNX Media down by 2.21%, CNX PSU Bank down by 2.10%, CNX Bank down by 1.57%, CNX Finance by 1.31% and CNX Energy down by 1.19% were the losers on index. On the other hand, CNX Auto up by 0.49% and CNX MNC up by 0.20%, were the gainers on index.

The India VIX increased by 2.56% at 21.59 as compared to its previous close of 21.05 on Monday. The 50-share CNX Nifty decreased by 56.25 points or 0.92% to settle at 6,059.10.

Nifty November 2013 futures closed at 6071.95 on Tuesday at a premium of 12.85 points over spot closing of 6,059.10, while Nifty December 2013 futures ended at 6118.80 at a premium of 59.70 points over spot closing. Nifty November futures saw contraction of 2.14 million (mn) units taking the total outstanding open interest (OI) to 10.14 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 premium of 1.00 points at 148.00 compared with spot closing of 147.00. The number of contracts traded was 24,997.

DLF November 2013 futures were at a discount of 0.10 points at 149.40 compared with spot closing of 149.50. The number of contracts traded was 22,703. 

Yes Bank November 2013 futures were at a discount of 0.80 points at 361.40 compared with spot closing of 362.20. The number of contracts traded was 44,501. 

ICICI Bank November 2013 futures were at a premium of 1.30 points at 1046.70 compared with spot closing of 1045.40. The number of contracts traded was 29,240. 

SBI November 2013 futures were at a premium of 6.50 points at 1788.80 compared with spot closing of 1782.30. The number of contracts traded was 46,715. 

Among Nifty calls, 6,200 SP from the November month expiry was the most active call with contraction of 0.71 million open interest.

Among Nifty puts, 6,000 SP from the November month expiry was the most active put with an addition   of 1.28 million open interest.

The maximum OI outstanding for Calls was at 6,200 SP (6.46 mn) and that for Puts was at 6,000 SP (5.89mn).

The respective Support and Resistance levels of Nifty are: Resistance 6098.62-- Pivot Point 6073.18-- Support -- 6033.67.The Nifty Put Call Ratio (PCR) OI wise, stood at 0.90 for November month contract. The top five scrips with highest PCR on OI were, Grasim 2.09,   Tata Steel 1.61, Auro Pharma 1.44, L&T 1.11 and COLPAL 1.00.

Among most active underlying, SBI witnessed contraction of 1.28 million of Open Interest in the November month futures contract followed by United Spirits with contraction of 0.45 million of Open Interest in the near month contract; Reliance Industries witnessed contraction of 1.00 million of Open Interest in the November month futures. ICICI Bank witnessed contraction of 1.81 million in Open Interest in the November month contract and TCS witnessed contraction of 1.02 million in Open Interest in the near month futures contract.