Nifty after a positive opening, entered into red terrain on morning deals on Tuesday as investors remained concerned on the SBI’s internal report, that the revised FY’2011-12 gross domestic product (GDP) growth is likely to fall to 6 percent on account of a slump in manufacturing led by weak demand and difficulty in accessing funds. Global cues remained mixed with the US markets ending marginally lower in last session. However, most of the Asian equity benchmarks were trading mostly higher as investors remained optimistic about the outlook for the U.S. economy after the U.S. Senate confirmed Janet Yellen as the next head of the Federal Reserve. Some pessimism was witnessed on street in late Morning as the rupee was trading marginally lower at 62.37/38 versus its close of 62.31/32 on Monday. Traders were looking ahead to the inflation data next week for a clearer direction. Shares of telecom companies like, Idea Cellular, Bharti Airtel and Reliance Communication edged lower with court ruling, allowing the Comptroller & Auditor General (CAG) to audit books of accounts of private telecom companies.
Index magnified its losses and slipped to day’s low point in noon trade on account of relentless selling pressure in absence of any positive catalyst which could take the market higher. Further, mixed regional counterparts rendered no support to the ailing index, which was trading downbeat for fifth straight session, languishing well below the crucial 6,200 levels, with cut of around half a percent. Efforts to break-out in green in the last leg of trade failed and the index drifted further near day’s low point by the close of trade.
Most of the NSE sectoral indices made a red closing; CNX Pharma up by 0.22% and CNX Auto up by 0.09%, were the top gainers on index. On the other hand, CNX Metal down by 1.76%, CNX Realty down by 1.74%, CNX Realty down by 1.74%, CNX PSU Bank down by 1.65%, and CNX Energy down by 1.42% were the top losers on index.
The India VIX decreased by 1.09% at 16.32 as compared to its previous close of 16.50 on Monday. The 50-share CNX Nifty decreased by 29.20 points or 0.47% to settle at 6,162.25.
Nifty January 2014 futures closed at 6195.85 on Tuesday at a premium of 33.60 points over spot closing of 6,162.25, while Nifty February 2014 futures ended at 6234.15 at a premium of 71.90 points over spot closing. Nifty January futures saw contraction of 0.04 million (mn) units taking the total outstanding open interest (OI) to 17.71 mn units. The near month January 2014 derivatives contract will expire on January 30, 2014.
From the most active contracts, HDFC Bank January 2014 futures traded at a premium of 4.45 points at 669.00 compared with spot closing of 664.55. The number of contracts traded was 11,947.
Tata Steel January 2014 futures were at a premium of 4.30 points at 397.30 compared with spot closing of 393.00. The number of contracts traded was 15,757.
Reliance Industries January 2014 futures were at a premium of 8.40 points at 849.05 compared with spot closing of 840.65. The number of contracts traded was 20,036.
ICICI Bank January 2014 futures were at a premium of 5.65 points at 1056.25 compared with spot closing of 1050.60. The number of contracts traded was 28,896.
United Spirits January 2014 futures were at a premium of 20.90 points at 2731.15 compared with spot closing of 2710.25. The number of contracts traded was 12,678.
Among Nifty calls, 6,300 SP from the January month expiry was the most active call with an addition of 0.41 million in open interest.
Among Nifty puts, 6,000 SP from the January month expiry was the most active put with an addition of 0.82 million open interest.
The maximum OI outstanding for Calls was at 6,300 SP (5.26 mn) and that for Puts was at 6,000 SP (4.83 mn).
The respective Support and Resistance levels of Nifty are: Resistance 6220.68 -- Pivot Point 6195.47 - Support - 6166.23.
The Nifty Put Call Ratio (PCR) OI wise, stood at 0.96 for January month contract.
The top five scrips with highest PCR on OI were DR Reddy 2.04, Apollo Tyre 1.79, MRF 1.50, JSW Steel 1.15 and Mcleodruss 1.00.
Among most active underlying, SBI witnessed an addition of 7.11 million in Open Interest in the January month futures contract followed by Reliance Industries witnessed an addition of 0.71 million of Open Interest in the January month contract; United Spirits witnessed contraction of 0.03 million of Open Interest in the January month futures. Infosys witnessed contraction of 0.05 million of Open Interest in the January month contract and ICICI Bank witnessed contraction of 0.34 million in Open Interest in the near month futures contract.
