The markets opened on a strong footing, mainly in the backdrop of the resolution passed last night by the German parliament for increasing their contribution to the EFSF. Nifty futures closed the day at 5441, 65 points premium to the spot with a considerable addition in open interest. The rise was mainly led by the banking sector, which covered all its losses and Bank Nifty shed open interest on large volumes, which is a very healthy sign. The overall market breath was extremely positive with 1263 advances to 246 declines. On the options side the PCR increased to 1.08, and the 5500 call added the maximum open interest followed by the, 5300 call, while on the put side 5200 put added the maximum open interest followed by the 5400 put, which shows that the markets are still not clearly out of the woods. FIIs were net buyers to the tune of 727 crores and DIIs were net sellers to the tune of 587 crores. While Nifty managed to close above the crucial mark of 5366 the other technical indicators are still in sell mode. The crucial levels to watch for tomorrow will be 5408 and 5457 on the upside and 5323 and 5290 on the downside. Most of the asian markets closed in the green, while europe and U.S. still trading in the green on the back of mixed data, like rise in consumer confidence and fall in home prices, the markets may open on a flattish note, taking cue from the quantum of LTRO to be announced by the ECB very soon as well as the possible domestic political ramifications and RBI's policy in the day's to come.
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