The local benchmark, Nifty consolidated and ended the choppy day of trade on a flat note on Monday. However, the index opened in the red but bounced back in late morning and managed to end the trade with a marginal cut of just 3 points. The index opened lower tracking weak global cues after US markets continued their decline on Friday, and touched its intraday low breaching the crucial 5,450 mark; moreover an initial cut of about 2 percent in Reliance Industries (RIL) too dampened the sentiments. But, in the mid morning trade market took U-turn as some of the Asian counterparts pared their initial losses and buying witnessed at lower level in some specific stocks too supported the up move. Benchmark regained its positive terrain in afternoon trade as European markets after a soft start showed some sign of recovery. Afterwards, market traded in the tight range near its neutral line. Meanwhile, auto stocks like Bajaj Auto and TVS Motors ended with a good gain after the government decided to extend the Duty Entitlement Pass Book (DEPB) scheme for another 3 months, moreover, PSU oil marketing companies viz. BPCL, HPCL and IOC all finished the day’s trade with a gain in the range of 1.5-3 percent with further decline in crude oil prices on the buzz of Saudi’s output boost. However, RIL snapped the day’s trade with a cut of over 1.8 percent on reports that oil regulator DGH has refused to accredit three natural gas discoveries made by the company at its KG-D6 block. Finally, Nifty managed to snap the day’s trade near its previous close with a marginal cut.
On the global front, the US markets were back on the southward journey on Friday and the Dow slipped below 12000 mark, with other major indices too touching their multi month low while, Asian equity indices finished the day’s trade mostly in the negative terrain on Monday as investors remained worried that recovery in the world’s major economies are sputtering. Moreover, all the European counterparts were trading mixed at this point of time. Back home, on the sectoral front on NSE, CNX Infra remained the major gainer and rose 0.84% followed by Bank Nifty up by 0.03% while, CNX Realty and CNX IT slipped 0.35% and 0.04% respectively. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, rose 1.99% and reached 18.91, while S&P Nifty closed at 5,482.80 losing 3.00 points or 0.05%.
The India VIX witnessed a contraction of 0.21% at 18.91 on Monday as compared to its previous close of 18.54 on Friday.
The 50-share S&P CNX Nifty declined 3.00 points or 0.05% and settled at 5,482.80.
Nifty June 2011 futures closed at 5,501.90, at a premium of 19.10 points over spot closing of 5,482.80, while Nifty July 2011 futures were at 5,516.00 at a premium of 33.20 points over spot closing. The near month June 2011 derivatives contract expires on Thursday, June 30, 2011. Nifty June futures saw addition of 4.69% or 1.11 million (mn) units, taking the total outstanding open interest (OI) to 24.81 mn units.
From the most active underlying, SBI’s June 2011 futures closed at a premium of 13.85 points at 2235.70 compared with spot closing of 2221.85. The numbers of contracts traded were 16,854.
Titan June 2011 futures were at a discount of 81.20 point at 4652.80 compared with spot closing of 4734.00. The number of contracts traded was 7,550.
Tata Steel June 2011 futures were at a premium of 3.25 points at 566.15 compared with spot closing of 562.90. The number of contracts traded was 12,061.
Tata Motors June 2011 futures were at a premium of 5.05 at 1014.60 compared with spot closing of 1009.55. The number of contracts traded was 12,542.
RIL June 2011 futures were at a premium of 5.40 points at 930.00 compared with spot closing of 924.60. The number of contracts traded was 13,055.
Among Nifty calls, 5500 SP from the June month expiry was the most active call with contraction of 0.51 million or 8.91%.
Among Nifty puts, 5500 SP from the June month expiry was the most active put with an addition of 1.20 million or 21.91%.
The maximum Call OI outstanding for Calls was at 5500 SP (5.21 mn) and that for Puts was at 5500 SP (6.67 mn).
The respective Support and Resistance levels are: Resistance 5507.35-- Pivot Point 5472.15-- Support 5447.6.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.29 for June -month contract.
The top five scrips with highest PCR on OI were Videocon Industries 3.33, Sintex 3.00, BEML 3.00, Bharat Forge 2.00, and TCS 1.41.
Among most active underlying, State Bank of India (SBI) witnessed an addition of 4.65% of Open Interest (OI) in the June month futures contract followed by Reliance Industries which too added 6.24% of Open Interest (OI) in the near month contract. Meanwhile Tata Motors witnessed an addition of 2.64% of OI in the June month futures, Tata Steel witnessed an addition of 8.72% of Open Interest (OI) in the June month futures contract.
