TREND CHANGE ??

Nifty opened with a gap up and made a high of 5438, before closing the day at 5429,up by 1.31%. It is to be noted that the momentum was maintained throughout the day, unlike yesterday where it pared all its gains before closing. The star performers for the day were Sterlite, Sesa Goa, Sail, Gail and JP Associates. The overall market breadth was positive with 974 advances to 509 declines, while the FIIs were net buyers to the tune of 872 crores and DIIs were net sellers to the tune of 434 crores. On the futures side, Nifty futures closed at 5468, with 39 points premium, on increasing volumes and addition of open interest. On the options side the PCR increased to 1.12. On the call side there was massive shedding of open interest from 5000 to 5500 calls, with a corresponding increase in open interest from 5100 to 5600 puts. Today’s activity on the F&O side indicates profit booking at higher levels and possible hedging of the portfolios with addition of puts at all levels, ahead of the key events about to unfold from tomorrow onwards. On the technical indicators side, the continuous rise in the last three consecutive sessions has led to change in trend, both on the daily and the weekly charts. While the future outcome will be decided in the days to come, the levels to watch out for Nifty will be 5450, 5467 and 5496 on the upside and 5371 and 5352 on the downside. The U.S. and the European markets are strongly trading in the green on the back of strong retail sales data from U.S. and ratings upgrade of Greece by Fitch.