Nifty ends with marginal cut ahead of IIP numbers

The local benchmark, Nifty ended the range bound day of trade with marginal cut. The index traded between 5,500 and 5,550 levels throughout the day on, as investors remained on the safer side eying for Index of Industrial Production (IIP) numbers which is slated to be released on June 10. Earlier, the market made a flat start tracking weakness in the global indices as the US markets continued their decline for yet another day on Wednesday on getting more disappointing news from the economy front. Thereafter, the benchmark indices edged higher in the early trade as inflation worries eased after the government reportedly deferred a decision on fuel price hike. In the mid morning trade, market started its southbound journey and reversed all gains touching its intraday low near its crucial 5,500 mark after the weekly inflation surged 9.01% and the fuel price index climbed 12.46% in the year to May 28 compared to 8.06% and 12.54% respectively in the previous week but, market found strong support near its crucial 5,500 mark and market regained its positive terrain as buying witnessed in some key heavyweights like, RIL, BHEL, L&T, NTPC etc moreover, gains across European counterparts too supported the sentiments. But, in the final hours of trade, market moved downwards once again as traders booked profit. Moreover, PSU oil marketing companies viz. BPCL, HPCL, IOC all finished the trade with a cut in the range of 1-3 percent on the back of sharp bounce in crude oil prices which traded well above $100 a barrel level on Thursday. Finally, Nifty managed to end the session with a marginal cut of just 5 points.

On the global front, the US markets continued their decline for yet another day on getting more disappointing news from the economy front, All the Asian equity indices barring Nikkei ended the day’s trade in the negative terrain on Thursday amid persistent worries about the US and global economy outlook. Moreover, European counterparts were trading mixed where major indices, DAX and FTSE were trading higher while; DAX edged lower in the trade at this point of time. Back home, on the sectoral front on the NSE, CNX Infra and CNX Realty surged 0.45 and 0.12 percent respectively while, CNX IT and Bank Nifty slipped 0.20 and 0.06 percent respectively. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, remained flat at 18.58, while S&P Nifty closed at 5,521.05 losing 5.80 points or 0.10%. The markets registered volumes of over Rs 0.67 lakh crore while the turnover for NSE F&O segment remained lower compared to Monday at over Rs 0.78 lakh crore.

The India VIX ended unchanged at 18.58 on Thursday.  

The 50-share S&P CNX Nifty declined 5.80 points or 0.10% and settled at 5,521.05.

Nifty June 2011 futures closed at 5,522.00, at a premium of 0.95 points over spot closing of 5,521.05, while Nifty July 2011 futures were at 5,536.00 at a premium of 14.95 points over spot closing. The near month June 2011 derivatives contract expires on Thursday, June 30, 2011. Nifty June futures saw addition of 2.47% or 0.61 million (mn) units, taking the total outstanding open interest (OI) to 25.43 mn units.

From the most active underlying, SBI's June 2011 futures closed at a premium of 12.55 points at 2277.00 compared with spot closing of 2264.45. The number of contracts traded was 23,776.

Tata Motors June 2011 futures were at a premium of 2.75 point at 1023.90 compared with spot closing of 1021.15. The number of contracts traded was 19,659.

Titan June 2011 futures were at a discount of 67.00 points at 4508.00 compared with spot closing of 4575.00. The number of contracts traded was 5,794.

L&T June 2011 futures were at a premium of 3.50 at 1734.50 compared with spot closing of 1731.00. The number of contracts traded was 13,603.

ICICI Bank June 2011 futures were at a premium of 3.65 points at 1051.05 compared with spot closing of 1047.40. The number of contracts traded was 10,866.

Among Nifty calls, 5600 SP from the June month expiry was the most active call with an addition of 0.36 million or 6.22%.

Among Nifty puts, 5500 SP from the June month expiry was the most active put with contraction of 0.14 million.

The maximum Call OI outstanding for Calls was at 5600 SP (6.24 mn) and that for Puts was at 5500 SP (6.83 mn).

The respective Support and Resistance levels are: Resistance 5540.08-- Pivot Point 5521.06-- Support 5502.03.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.33 for June -month contract.

The top five scrips with highest PCR on OI were BEML- 3.00, Asian Paints- 2.50, Sintex- 2.00, Bharat Forge - 2.00, and Piramal Healthcare - 1.14.

Among most active underlying, State Bank of India (SBI) witnessed an addition of 7.66% of Open Interest (OI) in the June month futures contract followed by Tata Motors which too added 1.44% of Open Interest (OI) in the near month contract. Meanwhile L&T witnessed an addition of 1.48% of OI in the June month futures.