Nifty ends below 6,500 levels as jittery investors book profits

Nifty followed global market trends on Thursday and gave up more than what it had garnered in the previous sessions. After making a negative opening, and staging some recovery the index failed to break in the green territory even once during the day. Profit booking that took place in last leg pushed the index towards day’s low point below the crucial 6,500 levels. Selling was wide-based, as barring IT, Media, and Pharma none of sectoral indices on the NSE could manage a green close. Counters, which featured in the list of worst performers, included Realty, PSU Bank, and Infra.

Sentiments remained subdued since start of the trade on feeble global cues as US Fed cut monthly purchases of Treasuries to $55 billion and investors remained concerned about the Fed statement that the time between the end of bond-buying and rate increases could be around of ‘six months’. Moreover, depreciation in Indian rupee too dampened investors’ sentiments.

Meanwhile, sectoral indices on the NSE made negative closing. CNX IT up by 1.69%, CNX Media up by 0.20% and CNX Pharma up by 0.17% remained the gainers in the trade. While, Realty down by 2.63%, CNX PSU Bank down by 2.23%, CNX Infra down by 1.68%  CNX Finance down by 1.65%, and CNX Bank  down by 1.39% were remained the top losers in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 0.16% and reached 16.9100. The 50-share CNX Nifty decreased by 40.95 points or 0.63% to settle at 6,483.10.

Nifty March 2014 futures closed at 6,502.55 on Thursday at a premium of 19.45 points over spot closing of 6,483.10, while Nifty April 2014 futures ended at 6551.55 at a premium of 68.45 points over spot closing. Nifty March futures saw contraction of 0.66 million (mn) units, taking the total outstanding open interest (OI) to 19.28 mn units. The near month March 2014 derivatives contract will expire on March 27, 2014.

From the most active contracts, Reliance Communications March 2014 futures were at a premium of 0.40 points at 121.45 compared with spot closing of 121.05. The number of contracts traded was 10,882.

Tata Steel March 2014 futures were at a premium of 0.10 points at 350.70 compared with spot closing of 350.60. The number of contracts traded was 18,196.

Reliance Industries March 2014 futures traded at a premium of 1.70 points at 907.40 compared with spot closing of 905.70. The number of contracts traded was 20,851.

ICICI Bank March 2014 futures traded at a premium of 6.70 points at 1206.70 compared with spot closing of 1200.00. The number of contracts traded was 19,616.

Larsen & Toubro March 2014 futures traded at a premium of 5.50 points at 1225.15 compared with spot closing of 1219.65. The number of contracts traded was 8,421.

Among Nifty calls, 6,600 SP from the March month expiry was the most active call with an addition of 0.51 million open interest.

Among Nifty puts, 6,400 SP from the March month expiry was the most active put with an addition of 0.37 million open interest.

The maximum OI outstanding for Calls was at 6,600 SP (5.74 mn) and that for Puts was at 6,400 SP (6.64 mn).

The respective Support and Resistance levels of Nifty are: Resistance 6513.42 -- Pivot Point 6493.33 - Support -- 6463.02.

The Nifty Put Call Ratio (PCR), finally stood at 1.29 for March month contract. The top five scrips with highest PCR on OI were HDFC 1.70, ITC 1.43, Ambuja Cement 1.38, Hindalco 1.37 and Hero Moto Company 1.12.

Among most active underlying, State Bank of India witnessed  contraction of 0.14 million of Open Interest in the March month futures contract, followed by United Spirits witnessing  contraction  of 0.42 million of Open Interest in the March month contract; Reliance Industries  witnessed contraction of 0.71 million of Open Interest in the March month futures. TCS witnessed contraction of 0.04 million of Open Interest in the March month contract and ICICI Bank witnessed an addition of 0.19 million in Open Interest in the expiring March month's future contract