Nifty ends below 6,250 levels on weak eco data

Nifty fell for the first time in six days on rising concerns over weak domestic economic growth. Index after getting a gap-down start went on losing ground and settled near day’s low point, below the crucial 6,250 levels. On the global front, Asian markets ended in red on Monday as growing fears of a conflict between Ukraine and Russia sent traders scurrying for safer assets, with the yen surging and oil prices also seeing big gains. The downbeat atmosphere was compounded in some markets by another disappointing set of manufacturing figures from China that added to concerns about growth in the world’s number two economy. Additionally, European shares too tumbled in early trade on Monday as escalating tensions in Ukraine weighed on the sentiment.

Back home, sentiments remained dampened after the output of eight core industries slowed down to a three-month low of 1.6% in the month of January against 2.1% in December on account of poor output of coal, petroleum refinery products and natural gas. The growth of core industries sector in the reported month was much lower than 8.3% growth recorded in the same month last year. Market participants also remained concerned about a survey by industry body CII and ASCON findings that industrial activity in the October-December 2013 quarter remained subdued and grim, treading along the growth path of the previous quarter.

Investors overlooked better factory output numbers. The HSBC Purchasing Managers’ Index (PMI), a headline index designed to measure the overall health of the manufacturing sector, rose to 52.5 in the month of February as against 51.4 in January. Sentiments also remained dampened as Indian rupee was trading lower at 62.03/04 per dollar at the time of equity markets closing, versus Friday’s close of 61.75/76. Global risk aversion on geopolitical tensions in Ukraine is weighing on most Asian currencies.

Meanwhile, sectoral indices on the NSE made positive closing. CNX Pharma down by 1.86%, CNX IT down by 1.25% ,CNX Auto down by 1.15, CNX Bank down by 1.05 and CNX Finance down by 1.02% were remained the top losers in the trade. While, CNX Energy up by 0.05% remained the gainers in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 7.79% and reached 15.2825. The 50-share CNX Nifty decreased by 55.50 points or 0.88% to settle at 6,221.45.

Nifty March 2014 futures closed at 6239.45 on Friday at a premium of 18.00 points over spot closing of 6,221.45, while Nifty April 2014 futures ended at 6274.45 at a premium of 53.00 points over spot closing. Nifty March futures saw contraction of 0.25 million (mn) units, taking the total outstanding open interest (OI) to 13.45 mn units. The near month March 2014 derivatives contract will expire on March 27, 2014.

From the most active contracts, Tata Motors March 2014 futures traded at a premium of 2.40 points at 411.65 compared with spot closing of 409.25. The number of contracts traded was 9,630.

Yes Bank March 2014 futures traded at a premium of 1.95 points at 304.65 compared with spot closing of 302.70. The number of contracts traded was 11,455.

Tata Steel March 2014 futures were at a premium of 2.90 points at 346.90 compared with spot closing of 344.00. The number of contracts traded was 15,376.

Reliance Industries March 2014 futures were at a premium of 2.45 points at 806.70 compared with spot closing of 804.25. The number of contracts traded was 12,834.

SBI March 2014 futures were at a discount of 6.60 points at 1509.40 compared with spot closing of 1516.00. The number of contracts traded was 34,292. 

Among Nifty calls, 6,300 SP from the March month expiry was the most active call with addition of 1.13 million open interest.

Among Nifty puts, 6,200 SP from the March month expiry was the most active put with an addition of 4.53 million open interests.

The maximum OI outstanding for Calls was at 6,300 SP (5.11 mn) and that for Puts was at 6,200 SP (5.58 mn).The respective Support and Resistance levels of Nifty are: Resistance 6262.05 -- Pivot Point 6237.15 - Support- 6196.55.

The Nifty Put Call Ratio (PCR) OI wise, finally stood at 1.14 for March month contract. The top five scrips with highest PCR on OI were Bata India 1.64, Kotak Bank 1.38, Hind Petro 1.18, Ambuja Cement 1.16, and Tata Motors 1.11.

Among most active underlying, State Bank of India witnessed contraction of 0.12 million of Open Interest in the March month futures contract, followed by Reliance Industries witnessing an addition  of 0.14 million of Open Interest in the March month contract; United Spirits witnessed contraction of 0.40 million of Open Interest in the March month futures. Infosys witnessed contraction of 0.03 million of Open Interest in the March month contract and TCS witnessed contraction of 0.09 million in Open Interest in the expiring March month’s future contract.