Nifty snaps 10-day winning streak on profit booking

Snapping its 10-day winning streak Nifty closed in the negative territory as traders booked profit getting cautious ahead of few global developments within a week that are likely to cause volatility in the equity markets. The index, squandering a positive start, languished the entire day in the red terrain as traders sold every small intraday rally. Sentiments were down after HSBC services Purchasing Managers' Index data showed that Activity in the largest segment of the Indian economy failed to pickup in March as contraction continued for the ninth straight month. Selling in banking stocks and depreciation in Indian rupee against dollar further added to the pessimistic sentiments. The index made a remarkable recovery in the last leg of trade gaining more than 40 points from the lower levels however was unable to break out in the green territory.

Meanwhile, sectoral indices on the NSE made negative closing. CNX FMCG up by 0.38%, CNX Pharma up by 1.02% and CNX Metal up by 0.19% remained the gainers in the trade. While CNX PSU Bank down by 2.02% , CNX Bank  down by 1.19%, CNX Finance down by 0.87%, CNX Energy down by 0.73% and CNX Media  down by 0.69% were remained the loser in the trade.

The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, up by 4.21% and reached 22.1075. The 50-share CNX Nifty decreased by 16.45 points or 0.24% to settle at 6,736.10.

Nifty April 2014 futures closed at 6,768.45 on Thursday at a premium of 32.35 points over spot closing of 6,736.10, while Nifty May 2014 futures ended at 6,803.65 at a premium of 67.55 points over spot closing. Nifty April futures saw contraction of 0.12 million (mn) units, taking the total outstanding open interest (OI) to 17.14 mn units. The near month April 2014 derivatives contract will expire on April 24, 2014.

From the most active contracts, IDFC April 2014 futures were at a premium of 0.90 points at 125.60 compared with spot closing of 124.70. The number of contracts traded was 30,618.

DLF April 2014 futures were at a premium of 1.15 points at 172.65 compared with spot closing of 171.50. The number of contracts traded was 12,315.

Ranbaxy Laboratories April 2014 futures traded at a premium of 4.25 points at 428.00 compared with spot closing of 423.75. The number of contracts traded was 18,900.

LIC Housing Finance April 2014 futures traded at a premium of 1.20 points at 245.20 compared with spot closing of 244.00. The number of contracts traded was 12,310.

Tata Steel April 2014 futures traded at a premium of 3.20 points at 400.40 compared with spot closing of 397.20. The number of contracts traded was 19,911.  Among Nifty calls, 6,900 SP from the April month expiry was the most active call with an addition of 1.42 million open interest.

Among Nifty puts, 6,400 SP from the April month expiry was the most active put with an addition of 1.95 million open interest.

The maximum OI outstanding for Calls was at 6,900 SP (4.38 mn) and that for Puts was at 6,400 SP (5.77 mn).

The Nifty Put Call Ratio (PCR), finally stood at 1.38 for April month contract. The top five scrips with highest PCR on OI were ONGC 10, NHPC 6.71, Hindalco 6.17, Kotak Bank 4.50, and Auro Pharma 3.75.

The respective Support and Resistance levels of Nifty are: Resistance 6,776.27-- Pivot Point 6,736.58 - Support -- 6,696.42.

Among most active underlying, State Bank of India witnessed with contraction  of 0.19 million of Open Interest in the April month futures contract, followed by United Spirits  witnessing  contraction  of 0.08 million of Open Interest in the April month contract; HDFC Bank witnessed an addition of 0.05 million of Open Interest in the April month futures. Reliance Industries witnessed an addition of 0.07 million of Open Interest in the April month contract and TCS witnessed contraction of 0.02 million of Open Interest in the expiring April month's future contract