Nifty ends volatile day of trade on a quiet note

The local benchmark, Nifty witnessed consolidation after a two day's rally and ended the volatile day of trade on a quite note on Monday. The market surrendered all its gains in late hours, clocked in the early part of trade lacking any buying support near its psychological 5,500 levels. Earlier, the market opened on a positive note and surpassed its crucial 5,500 mark on the back of buying in all the heavyweights along with broader indices but, the index started falling and turned red in the mid morning trade, touching its intraday low as investors started booking profit earned in previous two sessions, tepid cues from global peers also dampened the sentiments. Afterwards, benchmark found strong support near its crucial 5,450 mark and started its northbound journey and touched the green terrain in the early noon trade tracking positive start of the European counterparts. Market traded in the tight range till end after swinging between positive and negative zone throughout the afternoon trade as traders remained on the safer side ahead of Q4 Gross Domestic Product (GDP) data slated to be released tomorrow. Meanwhile, Educomp Solution and Bharat Petroleum Corporation (BPCL) reported better than expected Q4 numbers while, Mahindra & Mahindra and Indian Oil Corporation (IOC) came up with lower than estimated numbers. Finally, Nifty ended the volatile day of trade on a flat note.

On the global front, the US markets managed the close of modest gains on Friday, though the economic news remained mixed while, most of the Asian equity indices finished their trade in the negative terrain on Monday as investors remained cautious on the back of weak global cues. Moreover, the European counterparts were trading higher where major indices viz; CAC 40 and DAX were trading with decent gains at this point of time. Back home, all sectoral indices on the NSE settled in the positive territory with CNX Realty surging the most with a gain of about two and a half percent followed by Bank Nifty, CNX IT and CNX Infra. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, surged 3.59% and reached 17.87, while S&P Nifty was down by 3 points to close at 5,473.10. The markets registered volumes of over Rs 0.70 lakh crore while the turnover for NSE F&O segment remained lower compared to Friday at over Rs 0.58 lakh crore.

The India VIX gained 3.59% at 17.87 on Monday as compared to its previous close of 17.25 on Friday.  

The 50-share S&P CNX Nifty lost 3.00 points or 0.05% and settled at 5,473.10.

Nifty June 2011 futures closed at 5,467.00, at a discount of 6.10 points over spot closing of 5,473.10, while Nifty July 2011 futures were at 5,477.75 at a premium of 4.65 points over spot closing. The near month June 2011 derivatives contract expires on Thursday, June 30, 2011. Nifty June futures saw addition of 4.97% or 1.06 million (mn) units, taking the total outstanding open interest (OI) to 22.56 mn units.

From the most active underlying, M&M June 2011 futures closed at a premium of 3.50 points at 667.05 compared with spot closing of 663.55. The number of contracts traded was 18,249.

SBI's June 2011 futures were at a premium of 11.90 point at 2245.95 compared with spot closing of 2234.05. The number of contracts traded was 18,019.

Tata Motors June 2011 futures were at a premium of 1.00 points at 1078.00 compared with spot closing of 1077.00. The number of contracts traded was 16,256.

Tata Steel June 2011 futures were at a premium of 1.65 at 580.45 compared with spot closing of 578.80. The number of contracts traded was 11,807.

LIC HSG Finance June 2011 futures were at a premium of 0.80 points at 231.40 compared with spot closing of 230.60. The number of contracts traded was 10,453.For Nifty calls, 5500 strike price (SP) from the June series was the most active call with an addition of 0.85 million or 26.16%.

Among Nifty puts, 5400 SP from the June month expiry was the most active put with contraction of 0.09 million or 1.68%.

The maximum Call OI outstanding was at 5500 SP (4.08mn) and that for Puts at 5400 SP (5.28mn).

The respective Support and Resistance levels are: Resistance 5502.06-- Pivot Point 5480.33-- Support 5451.36.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.27 for June -month contract.

The top five scrips with highest PCR on OI were Sintex 2.00, Punjab National Bank 1.94, Sun Pharmacueticals 1.21, Kotak Bank 1.13, Bajaj Auto 1.09.

Among most active underlying, Tata Motors (SBI) witnessed an addition of 2.98% in the June month futures contract, followed by State bank of India (SBI) which added 0.48% of Open Interest (OI) in the near month contract. Meanwhile, M&M too witnessed an addition of 62.17% in the June month futures coupled with Hindalco which added 12.10% in the June month future contract.