Nifty snaps three days winning streak; Rupee near 53 mark

Snapping its three days consecutive run, key benchmark Nifty, after holding the 5,250-mark for the better part of the day, ended the day’s trade slightly in red. On the global front, strong US factory activity data and a pickup in Asia raised hopes of a global economic recovery, but fears over the health of the euro zone kept the single currency under pressure while, European counters too opened in the positive terrain. Back home, the rupee dipped below 53 to the dollar on Wednesday, nearly touching a four-month low, as oil importers bought the US currency, but suspected central bank intervention helped it recoup some losses.

Initially, market got off a decent start recapturing its crucial 5,250 mark as investors’ sentiment in the early trade were underpinned by upbeat corporate earnings. Hindustan Unilever was up by over two percent after reporting a 21 percent year-on-year (y-o-y) growth in net profit at Rs 687 crore for the fourth quarter ended March 31, 2012. While, Bharti Airtel also traded higher by two and a half percent after the company reported higher operating profit on a sequential basis. Afterwards, market traded comfortably over its psychological 5,250 mark as sentiments remained upbeat after pace of growth in India's factory sector inched up in April, supported by bulging order books, but slower output growth and increasing price pressures dampened sentiment. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by Markit, rose to 54.9 in April from 54.7 in March. Moreover, sentiments improved for the IT counters on strong US manufacturing data. Meanwhile, Cable service provider stocks rallied today after the TRAI issued an order to allow Multi-System Operators to charge a carriage fee from broadcasters. Hathway Cable, Den Networks and Wire and Wireless India (WWIL) ended with handsome gains. But, in the mid noon trade the index took U-turn and turned red as investors started profit booking as State-run banks were seen selling dollars in the foreign exchange market after the rupee fell below 53 to the dollar, likely on behalf of the RBI. Meanwhile, shares from the auto pack dipped lower as most of them reported a single digit growth in passenger vehicle sales in the domestic market during the month of April 2012 over the previous year. Finally, market ended the day’s trade near its intraday low below its crucial 5,250 mark.

Meanwhile, on the NSE, CNX Auto losing the most, ending with a cut of over one and a half percent followed by CNX PSE down by 1.04%, CNX Energy down by 0.86%, while CNX Media up by 1.68%, Bank Nifty up by 0.29% and CNX FMCG up by 0.24% in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged 4.04% and reached 18.54.

The India VIX witnessed an addition of 4.04% at 18.54 as compared to its previous close of at 17.82 on Monday.

The 50-share S&P CNX Nifty lost 9.00 points or 0.17% to settle at 5,239.15.

Nifty May 2012 futures closed at 5246.95 at a premium of 7.8 points over spot closing of 5239.15, while Nifty June 2012 futures were at 5264.25 at a premium of 25.1 points over spot closing. The near month May 2012 derivatives contract will expire on Thursday i.e. May 31, 2012. Nifty May futures saw contraction of 0.18 million (mn) units taking the total outstanding open interest (OI) to 18.38 mn units.

From the most active contract, Tata Motors May 2012 futures were at a premium of 0.55 point at 305.55 compared with spot closing of 305.00. The number of contracts traded was 17,975.

HDIL May 2012 futures were at a premium of 0.75 point at 80.10 compared with spot closing of 79.35. The number of contracts traded was 7,391.

Pantaloon Retail May 2012 futures were at a premium of 2.15 points at 184.70 compared with spot closing of 182.55. The number of contracts traded was 15,984.

DLF May 2012 futures were at a premium of 0.75 point at 192.95 compared with spot closing of 192.20. The number of contracts traded was 8,592.

Bharti Airtel May 2012 futures were at a premium of 1.00 point at 319.90 compared with spot closing of 318.00. The number of contracts traded was 11,994.

Among Nifty calls, 5600 SP from the May month expiry was the most active call with an addition of 0.35 million open interest.

Among Nifty puts, 5100 SP from the May month expiry was the most active put with an addition of 0.13 million open interest.

The maximum OI outstanding for Calls was at 5600 SP (4.83mn) and that for Puts was at 5100 SP (4.79mn).

The respective Support and Resistance levels are: Resistance 5270.35-- Pivot Point 5248.4-- Support 5217.2.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.19 for May -month contract.

The top five scrips with highest PCR on OI were Dabur 2.00, PNB 1.54, Grasim 1.50, TCS 1.33 and Siemens 1.30

Among the most active underlying, Suzlon witnessed contraction of 0.49 million of Open Interest in the April month futures contract followed by IFCI which witnessed an addition of 0.41 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed an addition of 0.75 million in the April month futures. Also, JP Associates Infra witnessed contraction of 0.04 million in Open Interest in the April month contract. Finally, Tata Motors witnessed contraction of 0.29 million of Open Interest in the near month futures contract.