Nifty ends slightly in red on subdued PMI data

CNX S&P Nifty washed out all its early gains and snapped the session slightly in the red amid reports that the country’s manufacturing sector in August witnessed the weakest growth rate in nine months. However, the global cues remained supportive as Asian counters shut shop in the green after a contraction in China’s manufacturing boosted expectations of more stimulus for the world’s second-biggest economy. European markets opened lower after weak data from world’s second largest economy China. But the market immediately recovered early losses on hopes of stimulus from central banks and the improvement in Germany, UK and Euro zone’s PMI data (m-o-m). Back home, investors preferred booking their profits on prevailing caution ahead of IMG meet to review the status of 58 coal blocks, which both public and private firms failed to develop within stipulated time frame.

Earlier, the Indian market made a firm opening as sentiments remained jovial after the Shome committee recommended the postponement of GAAR provisions by three years. It also recommended the abolishment of capital gains tax on transfer of securities. But, market lost its ground after manufacturing growth of India eased to a nine-month low to 52.8 in August, 2012. The index turned red and touched its intraday low below its crucial 5,250 level in the early noon deals as sentiments turned lethargic after India’s exports slumped 14.8 percent to $22.44 billion in July as compared to $26.34 billion recorded during the corresponding month in 2011 due to lower demands in North America and Europe. Meanwhile, imports dropped 7.61 percent to $37.93 billion in July, leaving a monthly trade deficit of $15.49 billion. In the mid noon trade, market regained its strength and got back its green terrain by following recovery in European counters. But, the investors once again booked their profit as the government-BJP stand-off over CAG report on coal block allocation continued even today, signaling the possibility of a washout of the remaining four days in the Monsoon session. Finally, market snapped the day’s trade with slender losses but, managed to hold its crucial 5,250 mark.

Meanwhile, on the NSE sectoral indices, CNX Metal remained the major loser, down 0.42% followed by CNX Realty down 0.40% and Bank Nifty down by 0.28% while CNX Auto and CNX PSU Bank surged 0.41% and 0.32% respectively in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged 0.12% and reached 17.28.

The India VIX witnessed contraction of 0.12% at 17.28 as compared to its previous close of at 17.30 on Friday.

The 50-share S&P CNX Nifty lost 4.75 points or 0.09% to settle at 5,253.75.

Nifty September 2012 futures closed at 5282.90 on Monday at a premium of 29.15 points over spot closing of 5,253.75, while Nifty October 2012 futures were at 5310.90 at a premium of 57.15 points over spot closing. Nifty September futures saw an addition of 0.14 million (mn) units taking the total outstanding open interest (OI) to 19.74 mn units. The near month September 2012 derivatives contract will expire on Thursday i.e. September 27, 2012.

From the most active contracts, Tata Motors September 2012 futures were at a premium of 2.45 points at 232.45 compared with spot closing of 230.00. The number of contracts traded was 12,624.

Tata Steel September 2012 futures were trading at a premium of 4.25 points at 359.85 compared with spot closing of 355.60. The number of contracts traded was 12,263.

Sesa Goa September 2012 futures were at a premium of 1.95 point at 170.85 compared with spot closing of 168.90. The number of contracts traded was 7,281.

JSW Steel September 2012 futures were at a premium of 9.70 points at 673.60 compared with spot closing of 663.90. The number of contracts traded was 19,187.

ICICI Bank September 2012 futures were at a premium of 7.70 point at 909.55 compared with spot closing of 901.85. The number of contracts traded was 12,816. 

Among Nifty calls, 5400 SP from the September month expiry was the most active call with an addition of 0.95 million open interest.

Among Nifty puts, 5200 SP from the September month expiry was the most active put with an addition of 0.48 million open interest.

The maximum OI outstanding for Calls was at 5400 SP (5.79 mn) and that for Puts was at 5200 SP (6.30 mn).

The respective Support and Resistance levels are: Resistance 5285.31 -- Pivot Point 5264.23 --Support 5232.67.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.04 for September-month contract.

The top five scrips with highest PCR on OI were Welcorp 40.00, DIVIS Lab 3.00, ON Mobile 2.94, ABB 2.00, and VIPIND 1.50.

Among the most active underlying, Suzlon witnessed an addition of 22.91 million of Open Interest in the September month futures contract followed by IFCI which witnessed an addition of 1.91 million of Open Interest in the near month contract. Meanwhile, Jaiprakash Associates witnessed contraction of 0.20 million in the September month futures. Also, RCOM witnessed an addition of 0.86 million in Open Interest in the September month contract. Finally, Hindalco Industries witnessed an addition of 0.60 million of Open Interest in the near month futures contract.