INDECISION

Nifty opened on a flat note, and made a high of 5297, before closing at 5275, up by 0.34%, once again managing to close above the crucial mark of 5253, for the day. It was an absolutely , lackluster session, with the activity mainly concentrated in the Bank Nifty and FMCG stocks. The market breadth was evenly balanced with 695 advances to 784 declines and muted activity from the market participants, which was reflected in the figures where FIIs were net buyers to the tune of mere 111 crores and DIIs were net sellers to the tune of 120 crores. Nifty futures closed at 5297, with considerable loss of open interest and 22 points premium to the spot. On the options side the PCR increased to 1.02. There was considerable addition of open interest from 5200 to 5500 calls with an exception of the 5100 and 5600 calls, while on the put side there was considerable shedding of open interest in the 5600 put followed by the 5500 and 5300 puts. The India VIX also fell sharply by 4.48%. The entire scenario where the PCR has increased, along with continuous call writing at higher levels and the VIX making new lows every day. It is very unlikely that the markets will be able to make any meaningful gains in the short term. The levels to watch out for Nifty tomorrow will be 5315, 5337 on the upside and 5239 and 5204 on the downside. The European markets are trading deep in the red on the back of unfavorable inflation and manufacturing data , while the U.S. stocks are trading in the red mainly on the back of worse than expected Housing data and fears of Chinese economic slowdown. While the most important event will be the Fed chairman’s speech which has to be watched very closely.


STOCK PICKS


AXIS BANK - BUY 1168-1175, SL 1144. TGT  - 1203, 1211, 1236.