Nifty ends near day’s low ahead of IIP data

Nifty drifted towards the lower end of intraday trading range and closed near 6,075 in absence of buying support from foreign institutional investors. On the global front, Asian markets moved higher on Wednesday after the release of stronger-than-expected trade data from China and no plans of major changes in the central bank’s monetary policies by US Federal Reserve Chairwoman Janet Yellen.

Back home, after making a gap-up start Nifty managing to hold their gains in early deals. Nevertheless, some selling was seen soon after the Railway budget, but the markets stabilized after minor hiccups. Railway Minister Mallikarjun Kharge kept passenger fares and freight rates unchanged, introduced 72 new trains and said that train services will also start for Vaishno Devi shrine at Katra in Jammu and Kashmir. However, there was some cautiousness too in the market ahead of the Industrial Production and Consumer price index inflation data. Though, the IIP is likely contract for the second consecutive month in December, traders were mainly eyeing the CPI data, as the RBI’s next policy will majorly depend on it. Sensing some positive news, most of the rate sensitives remained in upbeat mood since beginning, though realty ended in red. Defensive sectors like FMCG and healthcare took a back seat, while the metal stocks too remained in somber mood since beginning.

Meanwhile, sectoral indices on the NSE made a positive closing. CNX Metal down by 1.28%, CNX FMCG down by 0.84%, CNX Realty down by 0.52%, CNX Pharma down by 0.22% and CNX MNC down by 0.12% were remained the top losers in the trade. While, CNX Finance up by 1.12%, CNX Bank up by 1.01%, CNX Energy up by 0.97%, CNX Infra up by 0.76%, and CNX PSE up by 0.69% remained the gainer in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, down by 6.44% and reached 17.43.The 50-share CNX Nifty increased by 21.30 points or 0.35% to settle at 6,084.00.

Nifty February 2014 futures closed at 6099.75 on Wednesday at a premium of 15.75 points over spot closing of 6,084.00, while Nifty March 2014 futures ended at 6135.40 at a premium of 51.40 points over spot closing. Nifty February futures saw contraction of 0.38 million (mn) units taking the total outstanding open interest (OI) to 15.52 mn units. The near month February 2014 derivatives contract will expire on February 26, 2014.

From the most active contracts, Tata Motors February 2014 futures were at a premium of 0.85 points at 377.65 compared with spot closing of 376.80. The number of contracts traded was 13,777. 

Reliance Industries February 2014 futures were at a premium of 5.30 points at 820.30 compared with spot closing of 815.00. The number of contracts traded was 18,748. 

Tata Steel February 2014 futures traded at a premium of 1.05 points at 374.85 compared with spot closing of 373.80. The number of contracts traded was 26,088.

HDFC Bank February 2014 futures were at a premium of 2.95 points at 647.90 compared with spot closing of 644.95. The number of contracts traded was 8,252. 

ICICI Bank February 2014 futures were at a premium of 2.45 points at 1000.15 compared with spot closing of 997.70. The number of contracts traded was 24,032. 

Among Nifty calls, 6,200 SP from the February month expiry was the most active call with an addition of 0.09 million in open interest.

Among Nifty puts, 6,000 SP from the February month expiry was the most active put with  an addition of 0.13 million open interests.

The maximum OI outstanding for Calls was at 6,200 SP (6.65 mn) and that for Puts was at 6,000 SP (9.08 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6101.27-- Pivot Point 6089.33 - Support- 6072.07.

The Nifty Put Call Ratio (PCR) OI wise, finally stood at 1.26 for February month contract. The top five scrips with highest PCR on OI were HCL Tech 1.51, Grasim 1.32, ACC 1.23, PNB 1.19, and Auro Pharma 1.14.

Among most active underlying, State Bank of India witnessed contraction of 0.14 million of Open Interest in the February month futures contract, followed by Reliance Industries witnessing  contraction  of 0.50 million of Open Interest in the February month contract; United Spirits witnessed contraction of 0.41 million of Open Interest in the February month futures. TCS witnessed an addition of 0.12 million of Open Interest in the February month contract and ICICI Bank witnessed contraction of 0.63 million in Open Interest in the expiring February month’s future contract.