Nifty opened on a strong note, but as the day progressed, the market gave up all its gains, that it had factored in due to the LTRO declared by the ECB .On the domestic front the core industrial growth figures were not encouraging and growth concerns spooked the market, which led to some profit booking. As suggested yesterday Nifty faced a resistance at 5457 level, but managed to close above the crucial level of 5323. The Nifty futures closed at 5439, still at 54 points premium to the spot,with considerable addition of open interest, which is quite perplexing. FIIs were net buyers to the tune of 579 crores while DIIs were net sellers to the tune of 431 crores. The market breadth also turned flattish at the end of the session, with 867 advances to 622 declines. The overall Put - Call Ratio increased to 1.10 , followed by maximum addition of open interest at 5600 and 5400 calls while on the put side 5000 and 5300 puts added the maximum open interest. The cumulative open interest on the put side is far greater than the call side, indicating that the scale may be tilting towards the bears. The pace of rise in the VIX (Volatility Index) and cost of carry of the nifty futures indicate the correction might not be over. Going forward crucial levels to watch out for Nifty will be 5444 and 5504 on the upside and 5338 and 5296 on the down side and every rise should be used, to open fresh shorts.
Stock Picks for the day
TATA Steel - Buy 448 - 454, SL 442. TGT - 464, 471
LT - Sell 1336, 1356, SL 1386. TGT - 1276, 1246.
AXIS Bank - Sell 1204, 1231, SL 1253. TGT - 1150, 1133.
AXIS Bank - Sell 1204, 1231, SL 1253. TGT - 1150, 1133.
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