GLOOM

The markets opened with a gap down, tracking their Asian peers and touched their intraday lows, within the first two hours of the trading session. The markets continued to trade in the same range for the for the entire day, but staged a remarkable comeback in the last half an hour,  from the day's low, to close almost flat. The Nifty and Sensex closed down by 26 and 94 points respectively. The market breadth was negative with 639 advances to 835 declines. On the sectoral front, the Banking sector was the biggest looser, followed by the Auto and FMCG sectors. On the individual stock front, JP Associate, Asian Paint, IDFC, SAIL & PNB, were the stocks which managed to buck the trend. On the Institutional side, both FIIs and DIIs turned net sellers to the tune of a massive 666 and 266 crores respectively in the cash market.

On the derivatives side, FIIs sold Index futures, worth 1252 crores and brought stock futures worth 146 crores. Nifty June Future closed at 4921, with just 3 points discount to the spot, along with a considerable addition of open interest. On the option side, the PCR increased to 1.08, along with a mild fall in the India VIX by 0.20%. On the call option side, the June series is opening with the maximum open interest at the 5000 call, followed by the 5300 & 5200 calls. On the Put option side, the 4800 put closed with the maximum open interest, 4900 & 4700 puts. The activity in the  F&O space, indicates the June series is opening with massive shorts in the Index as well as the stock futures. 

On the technical side, once again, Nifty took the intraday support around the crucial level of 4888, but closed below the critical level of 4950. Two consecutive gap down sessions have weakened the short term bounce-back and the indicators on the daily charts have also reversed, indicating worsening of the situation. Going forward the levels to watch out for Nifty will be 4954, 4973 & 4984 on the upside and 4888, 4852 and 4815 on the downside. On the currency front, the rupee hit a record low, clocking its worst month in half a year, as global risk aversion deepened and as a sharp slowdown in domestic economic growth added to gloom about its prospects.The USD-INR future finally settled at 56.41 for the day.

On the international market front, Asian and European markets have closed almost flat,while the U.S. stocks were trading down on the back of mixed economic data, but reversed losses as a Greek opinion poll showed support for the largest pro-bailout party and a report indicated the International Monetary Fund has started discussing contingency plans for a rescue of Spain. On the energy futures front, both Brent and WTI crude futures are trading down by 1.0 & 0.44 % at 102.44 & 87.43 $/bbl respectively, on the back of rise in the U.S. crude oil inventories.

UNCERTAIN

The markets opened on a negative note, and touched the intraday low within the first twenty minutes of the trading session and continued to trade with a negative bias throughout the day and ultimately both the indices closed in the negative zone. The Nifty and the Sensex closed down by 39 and 126 points respectively. The market breadth was extremely negative with 425 advances to 1047 declines. On the sectoral front, Banking sector was the biggest looser followed by the Auto and Midcap sectors. On the individual stock front, Ambuja Cement, ACC, Maruti & Sun Pharma were the few stocks, which managed to buck the trend. On the institutional side, there was hardly any participation, with  both FIIs and DIIs turning net sellers to the tune of merely 11 crores and 183 crores respectively in the cash market. 

On the derivatives side, the FIIs sold Index futures worth 255 crores and brought stock futures worth 284 crores. The Nifty future closed at 4933, with 17 points discount to the spot, along with a considerable loss of open interest. On the options side, the PCR fell to 0.99, along with a rise in the India VIX by 5.29%. On the Call options side, 5000 call added the maximum open interest followed by the 4900 call, on the other hand the 5100 call lost the maximum open interest, followed by the 5200 & 5400 calls . On the Put option side, except the 4800 put, there was considerable loss of open interest from the 4700 to 5600 puts. The entire activity in the F& O side, is nothing but rollover of positions to the next series, but the interesting thing to watch, is the discount in June futures, has increased from 5 to 18 points, and the options data is clearly showing that a considerable amount of short positions have been rolled over to the next series.

On the technical side, Nifty has managed to close at the crucial support of 4950, but the options data, do not present a rosy picture ahead. Since tomorrow, it is the expiry day as well as key data on the GDP and IIP figures will be released, the movement of Nifty will be influenced more by the domestic news rather than the rollover stats. The levels to watch out for Nifty, will be 4978, 4996 & 5007 on the upside and 4935, 4920 & 4911 on the downside. On the currency front, the Rupee depreciated once again and the USD-INR future closed at 56.53 for the day.

On the international market front, the Asian and European markets have ended deep in the red and the U.S. markets are also trading down, on the back of data which showed pending home sales dropped by the most in a year and concern that Greece will leave the euro grew. On the energy futures front, both the Brent and WTI crude futures are trading down by 2.98% and 3.23% at 103.50 & 87.83 $/bbl.

UNINSPIRING

The markets opened on a positive note, but briefly touched the intraday low within the first hour of the trading session, and again made a smart, V shaped recovery from that point and touched the intraday high, in the second half of the trading session, but slowly started loosing their momentum and ended almost flat by the end of the entire trading session. The Nifty and the Sensex, closed up marginally by 4 and 22 points respectively. The market breadth was also marginally positive with 754 advances to 685 declines. On the sectoral front , the IT sector was the biggest gainer, and the FMCG sector was the biggest looser, while in the rest of the sectors, there was hardly any activity. On the individual stock front, HCL Tech, CAIRN & WIPRO managed to buck the trend. On the institutional side there was very little participation,  with FIIs turning net buyers to the tune of merely 90 crores, while the DIIs were net sellers to the tune of 199 crores in the cash market.

On the derivatives side FIIs were net buyers in both Index and Stock futures to the tune of 216 & 327 crores. Nifty future closed at 4982, with 8 points discount to the spot, along with a considerable loss of open interest. On the options side, the PCR marginally increased to 1.19, along with a marginal increase in the India VIX by 1.48%. On the Call options side, the 4900 call lost the maximum interest, followed by the 4800 & 5200 calls, on the other hand 5100 was the only call that added the maximum open interest. On the Put option side, the 4800 put added added the maximum open interest, followed by the 5000 & 4900 puts, while the 4700 put lost the maximum open interest followed by the 5100 put. The activity in the F&O space indicates, rollover activity picking up at a hectic space and the June futures adding up positions, with a 5 point discount to the spot. The market participants will be closely watching , whether this discount will widen or turn into a premium, within the next two days, in order to take further positions in the next month. On the currency front, the Rupee depreciated once again and the USD-INR June future closed at 55.94.

On the technical side, Nifty came very close to the overhead resistance of 5028, but could not close above the 5000 mark, but the technical indicators on the daily and weekly charts, indicate there is some more steam left, before the short term rally fizzles out. The levels to watch out for Nifty will be 5028. 5035 & 5050 on the upside and 4976, 4955 & 4936 on the downside.

On the international market front, the Asian and European markets have closed on a positive note, and the U.S.markets are trading in the green, as Greek election polls pointed to support for pro-bailout parties, overshadowing a weak read on U.S. consumer confidence. On the energy futures front, the Brent and WTI crude futures are trading marginally down, at 106.59 & 90.68 $/bbl.

STOCK PICKS

AXIS BANK - BUY 1014-1020. SL 1000. TGT - 1036, 1044, 1060.

LT -  BUY 1192 - 1198. SL - 1175. TGT - 1213, 1227, 1232.

ICICI BANK -  BUY 824- 830. SL - 810. TGT - 845, 852.

RESPITE

As expected, the markets opened on a mildly positive note, but gained  positive momentum as the trading session progressed and ultimately both the indices closed at the highest point of the day. The Nifty and the Sensex closed up by 65 and 199 points respectively. The market breadth was very positive with 973 advances to 492 declines. On the sectoral front, Banking sector  was the biggest gainer, followed by the Midcap and FMCG sector. On the individual stock front, State Bank Of India, BHEL, Tata Power, PNB, Sesa Goa & Axis bank were the star performers of the day. On the institutional side, both FIIs and DIIs were net buyers to the tune of 109 & 168 crores in the cash market.

On the derivatives side, FIIs were net buyers in both Index and Stock futures to the tune of 96 and 296 crores respectively. Nifty future closed  at 4975, with 11 points discount to the spot, along with a massive fall in open interest.  On the options side, the PCR fell to 1.08, along with a fall in the India VIX by 5.81%. On the Call options side, the 4900 call option, lost the maximum open interest, followed by the 5000 & 4800 calls. On the Put options side, the 4700 put lost the maximum open interest, followed by the 4800 & 5200 puts, while the 4900 put added the maximum open interest followed by the 5000 put. The entire activity in the F&O space indicates, massive short covering on both futures and options side, which led to today's gains in the market. The focus has now shifted to the monthly expiry and the rollovers are already visible in both Index and stock futures and options. On the currency front, the Rupee appreciated a bit and the USD-INR future closed at 55.2.

On the technical side, the positive momentum can be sustained for some more time as most of the indicators indicate a upswing. Nifty has closed above the crucial level of 4950, and this level must be maintained, to sustain the trend. The levels to watch out for Nifty will be, 5010, 5034, 5074 on the upside and 4945, 4902 and 4888 on the downside.

On the international market front, the Asian and European markets have closed almost flat, while the U.S. stock-index futures advanced as Greece’s pro-bailout New Democracy party came top in opinion polls before next month’s election, boosting speculation the nation can implement austerity measures and keep the euro. On the energy futures front, both the Brent and WTI crude futures are trading in the positive zone at 107 & 91.14 $/bbl.

STOCK PICKS

AXIS BANK - BUY 1005- 1011. SL - 982. TGT - 1035, 1046, 1062.

LT -  BUY 1180- 1190. SL - 1160. TGT - 1225, 1241

ICICI BANK -  BUY 810 - 815. SL - 792. TGT - 844, 853

LACKLUSTRE

The markets opened on a negative note and touched their intraday lows within the first two hours of the trading session,  but slowly recovered till the end of the first half of the trading session and entered the positive zone briefly, at the start of the second half of the trading session, and entered the negative zone once again, but the markets slowly recovered and somehow stayed in the positive zone for the last one and half hours of the trading session. The Nifty and the Sensex closed, down by 1 & 5 points respectively. The market breadth was marginally positive with 844 advances to 601 declines. On the sectoral front , there was hardly any activity, but the FMCG sector was the biggest looser. On the individual stocks front, GAIL, JP Associate, Tata Steel, Cairn &  State Bank Of India were the star performers of the day. On the institutional side, the FIIs were net sellers to the tune of a massive 624 crores, while the DIIs were net buyers to the tune of 435 crores in the cash market.

On the derivatives side the FIIs sold Index futures worth 398 crores and brought Stock futures worth 209 crores. Nifty future closed at 4919, with just one point discount to the spot, along with a considerable loss of open interest. On the Options side, PCR increased to 1.10, along with moderate fall in the India VIX by 1.37%.On the Call options side, the 4800 call, lost the maximum open interest, followed by the 4700, 5100 & 5300 calls, while the 5000 call added the maximum open interest followed by the 4900 call. On the Put options side, the 4800 put, lost the maximum open interest followed by the 5000 5200 & 5100 put options. The entire activity in the F&O space indicates unwinding of shorts just before the expiry week kicks in, and at the same time FIIs are liquidating their cash market positions and building long positions in stock futures. On the currency front, the Rupee appreciated a bit and the USD-INR future closed at 55.41.

On the technical side, Nifty has once again managed to close above the crucial mark of 4888, for the second consecutive session, and the technical indicators, both on the daily and weekly charts, indicate a short term bounce back in the short term. The levels to watch out for Nifty will be, 4940, 4960 & 4986 on the upside, and 4894. 4868 & 4848 on the downside.

On the international market front, the Asian and the European markets have closed almost flat , while the U.S. markets have closed in the red. On the Energy futures the Brent and WTI crude futures have closed almost flat at 106.83 and 90.86 $/bbl. The U.S. markets will be closed tomorrow due to memorial day.

STOCK PICKS

ICICI BANK - BUY 795 - 805. SL - 779. TGT - 826, 832 & 845.

LT -  BUY 1165-1175 SL - 1132. TGT - 1205, 1219 & 1230

AXIS BANK - BUY 980 - 990. SL  - 960. TGT - 1010, 1021 & 1034.

JP ASSOCIATE -  BUY 59 - 60. SL - 58 TGT - 62, 63.70 & 64.80

INCREDULOUS

The markets opened on a positive note, on the back of a feel good factor, that the government may finally take some tough measures to ensure fiscal prudence. The markets continued to trade in the same range, for the first two hours of the trading session,  but from that point onwards it was a one way upward journey and ultimately both the indices managed to close near the highest point of the day. The Nifty and the Sensex closed up by 86 and 274 points respectively. The market breadth was positive with 914 advances to 524 declines. On the sectoral front, Banking sector was the biggest gainer, followed by the Energy, Midcap and FMCG sectors. On the individual stocks front, ONGC, Bharti, Bank of Baroda, Ranbaxy, HDFC and IDFC were the star performers of the day. On the institutional side, FIIs were net sellers to the tune of merely 106 crores, while the DIIs were net buyers to the tune of 130 crores in the cash market.

On the derivatives side, the FIIs sold Index futures worth 661 crores, and brought stock futures worth 638 crores. Nifty future closed at 4913, with 8 points discount to the spot, along with a massive loss of open interest. On the Options side the PCR stayed the same at 1.02, along with a fall in the India VIX by 6.04%. On the Call options side, the 4800 call lost the maximum open interest, followed by the 4900, 5000 & 4700 calls. On the Put options side, the 4800 put added the maximum open interest, followed by the 4900 & 4700 puts, on the other hand the 5100 put lost the maximum open interest, followed by the 5000 and 5200 puts. The entire activity in the F&O space indicates, that today's rally was a result of massive short covering as well as creation of longs in individual sectors and stocks, which also led to some put writing around the 4800 & 4900 levels. On the currency front, the rupee appreciated a bit and the USD-INR future closed 55.70.

On the technical side, the markets are still trading in the oversold zone and some of the indicators have shown some reversal signs, but since the rise has come on the back of short covering, not much has to be read in today's gains, on the other hand the positive aspect is that Nifty has managed to close above the crucial level of 4888. The levels to watch out for Nifty will be 4958, 4985 and 5041 on the upside and 4857, 4821 & 4793 on the downside.

On the international market front, the Asian markets have closed almost flat, and the European markets have closed on a strongly positive note, but the U.S. markets are trading in the red on the back of concerns about a Chinese slowdown and expectations of a worsening in Europe’s debt crisis. In the U.S., data showed companies placed fewer orders for computers, machinery and other capital equipment in April for a second month, indicating manufacturing in the U.S. is cooling. On the Energy futures front , both Brent and WTI crude are trading up by 1.12% and 1.31% at 106.74 & 91.08 $/bbl.

STOCK PICKS

Axis Bank - BUY 975-985. SL 950.TGT - 1010, 1023 & 1037

LT- BUY 1150-1160 SL  1130. TGT - 1181, 1195 & 1206

ICICI BANK- BUY 790 - 800. TGT - 833, 847 & 855

TOUGH TIMES AHEAD

Once again the markets opened on a negative note, but after the initial one hour of trade, the markets started drifting swiftly and reached very close to the intraday low within the next two hours of the trade, from there onwards it was a rollercoaster ride for the markets, with a series of ups and downs and eventually the markets touched the lowest point of the day at the start of the second half of the trading session, but could not recover much from those levels, till the end of the session. Nifty and the Sensex closed down by 25 and 78 points respectively. The market breadth was negative with 507 advances to 934 declines. On the sectoral front there was hardly any activity, but the Banking sector was the biggest looser, followed by the Midcap, Infra and Auto sectors. On the individual stock front, GAIL, Ranbaxy, IDFC and M&M bucked the trend. On the institutional side, FIIs were net sellers to the tune of 361 crores, while the DIIs were net buyers to the tune of 168 crores in the cash market.

On the derivatives side FIIs sold Index futures, worth 812 crores and brought Stock Futures worth 177 crores. Nifty future closed at 4814, with 22 points discount to the spot, along with a considerable loss of open interest. On the Options side, the PCR increased to 1.02, along with a massive jump in the India VIX by 11.23%. On the Call option side, the 4800 call added the maximum open interest followed by the 4700 call, while the 5300 call lost the maximum open interest, followed by the 5200 & 4900 calls. On the Put option side, there was considerable loss of open interest from 4800 to 5600 puts, with a exception of the 4700 put, which added the maximum open interest. The entire activity on the F&O space, indicates heavy selling by the FIIs in cash and futures, which is increasing the discount on Nifty and at the same time massive call writing at the lower levels is making matters worse. On the currency front, the rupee depreciated further and the USD-INR future finally closed at 56.08 for the day.

On the technical side , once again Nifty has closed below the crucial support levels, and inspite of being in the oversold zone, there seems to be no relief in sight, because of the rupee depreciation and the microeconomic factors.

On the international market front, both the Asian and European indices have closed deep in the red, and the U.S. markets are also trading in the red , sending the Dow Jones Industrial Average to the lowest  level in 2012, on a closing basis, amid concerns that Greece may leave the Euro. Stocks fell even after a report showed that demand for new U.S. homes, increased more than forecast in the month of April. On the energy futures front both Brent and WTI crude down by 2.11% & 2.25% at 106.12 and 89.78 $/bbl respectively.

SCARY

The markets opened with a gap up, and continued to trade strongly in the positive zone till the start of the second half of the trading session, when they suddenly gave up all their gains and entered the negative zone. The markets continued to trade in a range for the next one hour, and ultimately broke down and touched the intraday low towards the end of the trading session. Both Nifty and the Sensex closed near the lowest point of the day, down by 45 and 157 points respectively. The market breadth turned extremely negative with 534 advances to 247 declines. On the sectoral front , the Banking sector was the biggest looser, followed by the FMCG, Energy and Metal sector. On the individual stock front, TCS, HCL TECH and Tata Motors bucked the trend. On the institutional side FIIs were net sellers to the tune of 283 crores, while the DIIs were net buyers to the tune of 208 crores in the cash market.

On the derivatives side the FIIs were net buyers in both Index and Stock futures, to the tune of 572 and 247 crores respectively. Nifty future closed at 4841, with 19 points discount to the spot, along with a considerable addition of open interest. On the Options side, PCR stayed the same at 0.88, along with a rise in the India VIX by 1.96%. On the Call options side, the 5000 call added the maximum open interest followed by the 4900 & 4800 calls, while the 5400 call lost the maximum open interest followed by the 5200 & 5100 calls. On the Put option side, the 4700 put added the maximum open interest, followed by the 4800 put, on the other hand 4900 put lost the maximum open interest followed by the 5100 and 5200 puts. The entire activity in the F&O space, indicates fresh shorts being initiated in the index futures, along with massive call writing happening at higher levels. It is clear that all the gains of the day, were erased by the shocking fall in the rupee, and suddenly the sentiment changed from optimism to despair. On the currency front, the rupee touched its all time low of 55.47 and the USD-INR future closed at 55.49.

On the technical side, Nifty touched almost touched, the intraday resistance of 4957 as well as broke the crucial level of 4888 and closed at the intraday support of 4861, indicating more downside in the days to come. The levels to watch out for Nifty will be 4927, 4950 & 4993 on the upside and 4820, 4795 & 4780 on the downside.

On the international market front , most of the Asian indices and the European indices have closed on a strongly positive note, while the U.S. markets are trading in the green on the back of mainly three factors (i)  U.S. housing data beat estimates. (ii) The China Securities Journal said the nation plans to speed up approval of infrastructure projects and allocate construction funding faster to improve growth. (iii) European Union leaders are preparing to gather in Brussels tomorrow to discuss how to revive growth.

On the energy futures front both Brent and WTI crude futures are trading by 0.26% and 1.08% at 108.53 & 91.57 $/bbl.

Stock Picks

Axis Bank - BUY 958 - 965. SL 943. TGT - 979, 993.

RELIEF

The markets opened on a positive note, tracking their Asian peers, and gradually gained  strength, through the day and touched the intraday high at the start of the second half of the trading session, but ultimately gave up all their gains in the last half an hour of the trading session.The Nifty and the Sensex closed up by 15 and 31 points respectively. On the sectoral front Banking sector contributed the most, followed by the Energy and the Infra sector, on the other hand FMCG sector was the biggest looser. The market breadth was positive with 943 advances to 504 declines. On the individual stocks front, Tata Power, Bank of Baroda, Reliance Infra, State Bank of India and BHEL were the star performers for the day. On the institutional side, the FIIs were net sellers to the tune of merely 80 crores, while the DIIs were net buyers to the tune of 149 crores in the cash market.

On the derivatives side, the FIIs sold Index futures worth 547 crores and brought Stock futures worth 79 crores. Nifty future closed at 4894, with 12 points discount to the spot, along with a considerable loss of open interest. On the options side, the PCR decreased to 0.88, along with a rise in the India VIX by 1.57%. On the Call Options side, the 4900 call added the maximum open interest followed by the 5100 & 5200 calls, while the 5600 call lost the maximum open interest, followed by the 5300, 4800 & 5200 calls. On the Put option side, the 4800 put added the maximum open interest, followed by the 4900 & 5200 puts, while the 5100 put lost the maximum open interest, followed by the 4700 & 5300 puts. The activity in the F&O space indicates, that today's intraday rally was mainly due to short covering on the index futures side, coupled with a sustained buying by the FIIs In the stock futures, which has supported the markets a bit.

On the technical side, Nifty touched the intraday resistance of 4936, and retreated sharply, on the other hand Nifty has closed above the crucial mark of 4888, for the second consecutive day, which has created some reversal in the indicators, on the daily charts, but the markets must consolidate at these levels for some time, in order to create a short term reversal. The levels to watch out for Nifty will be 4932, 4957 & 4981 on the upside, and 4883,4861 & 4834 on the downside. On the currency front, the rupee touched its all time low, and the USD-INR future closed at 55.09.

On the international market front, the Asian markets have closed, almost flat, while the European markets have closed in the green, and the U.S. markets are trading strongly in the green, with the S&P 500 is poised for the biggest gain in a month, after Chinese Premier Wen Jiabao pledged to focus more on bolstering growth, on the other hand Germany and France agreed that they will do “everything necessary” to ensure Greece remains in Europe’s single currency. On the energy futures front, the Brent and WTI crude futures are trading up by 1.33% and 1.08%, at 108.57 & 92.47 $/bbl.

Stock Picks for the Day

Axis Bank - BUY 955-960, SL 937. TGT - 971, 979, 982.

ICICI Bank - BUY  795 - 800 SL 782. TGT - 829, 839.

LT - BUY  1175 - 1180. SL 1145. TGT - 1209,1217,1223.

TREMULOUS

As expected, the markets opened with a gap down, tracking its Asian peers and touched their intraday lows within the first two hours of the trading session, but slowly started recovering for the next two hours of the trading and suddenly, the better than expected results from State Bank of India, added the much needed fillip to the market, and eventually Bank Nifty, pushed the markets into the positive zone and both the indices close at the highest point of the day. Nifty and the Sensex closed up by 21 and 82 points respectively. The market breadth recovered remarkably and closed with 622 advances to 838 declines. On the sectoral front the major contributors were Banking sector followed by the FMCG, but the rest of the sectors, either ended flat or in the negative zone. On the individual stocks front SBIN, Sesa Goa, Grasim, IDFC & SAIL were the star performers of the day. On the institutional side, the FIIs were net sellers to the tune of 249 crores, while the DIIs were net buyers to the tune of 149 crores in the cash market.

On the derivatives side, the FIIs sold Index futures to the tune of merely 20 crores, and brought stock futures worth 264 crores. Nifty future closed at 4889, with 3 points discount to the spot along with a considerable loss of open interest. On the options side the PCR, marginally increased to 0.95, along with a slight increase in the India VIX by 0.17%. On the Call options side, the 5100 call added the maximum open interest, followed by the 4700 and 4800 calls, while the 4900 call lost the maximum open interest, followed by the 5300 & 5600 calls. On the Put option side, the 4700 put added the maximum open interest, while the 5100 put lost the maximum open interest followed by the 4900 & 5300 puts. The entire activity in the F&O space indicates, that the markets rose mainly on the back of short covering in index futures and options, with no meaningful addition of longs, which is mainly due to the uncertainty surrounding the international markets.

On the technical side, although the intraday pullback created a bullish candle formation, but most of the indicators are still in sell mode, and the F&O data also suggests, the markets are still not out of the woods. Going forward the levels to watch out for Nifty will be 4936, 4977 & 5002 on the upside and 4816, 4799 & 4742 on the downside. On the currency front the rupee appreciated a bit and the USD-INR future closed at 54.54.

On the international markets front, the Asian, European and the U.S. markets have closed deep in the red, but the manufacturing data of April and home sales data, showed that the U.S. economic expansion is still on track. On the energy futures front, the  Brent Crude future was trading down by  0.33% at 107.14 $/bbl and the WTI crude future was trading down by 1.17% at 91.48 $/bbl.

UNEASY CALM

The markets opened on a positive note, and touched their intraday highs within the first one and a half hours of the trading session, but within the next one hour of the trade, the markets started loosing their momentum and eventually entered the negative zone during the second half of the trading session, but ultimately recovered towards the fag end of the trading session and both Nifty and Sensex closed up by 12 & 40 points respectively. The market breadth was barely positive with 736 advances to 713 declines. On the sectoral front there was hardly any activity, except the FMCG sector, which was the standalone performer of the day. On the individual stock front Ambuja Cement, Sail, ITC, JP Associate and Jindal Steel were the star performers of the day. On the institutional side to everyone's surprise FIIs were net sellers to the tune of merely 10 crores, while the DIIs were net buyers to the tune of 254 crores in the cash market.

On the derivatives side the FIIs sold Index futures worth 246 crores and brought Stock futures worth 370 crores. Nifty future closed at 4852, with a considerable increase in open interest. On the Options front PCR stayed at yesterday's level of 0.94, along with a slight fall in the India VIX  by 0.5%. On the Call options side, the 4800 call added the maximum open interest followed by the 4900 & 5100 calls, while the 5300 call, lost the maximum open interest, followed by the 5200 & 5500 calls. On the Put options side, the 5000 put lost the maximum open interest, followed by the 5100 and 5300 puts, on the other hand the 4700 put added the maximum open interest. The activity in the F&O space indicates massive build up of shorts, and the only ray of hope, emanates from the buy figures of stocks and stock futures by the FIIs and DIIs, which indicates some value buying happening at the lower levels.

On the technical side, Nifty came very close to the resistance level of 4926 and closed once again below the crucial level of 4880. The indicators on the daily and weekly charts are still in oversold zone and there seems to be no divergence for the trend to reverse. In such a scenario, the levels to watch out for Nifty will be 4911, 4953 & 4983 on the upside and 4839, 4808 & 4767 on the downside. On the currency front, the rupee depreciated further and the USD-INR future closed at 54.61 for the day.

On the international market front, the Asian markets with a exception of Hang Seng, have closed either flat or in the green while the European markets have closed deep in the red. The U.S. stocks declined for a fifth day, sending the Standard & Poor’s 500 Index toward a four-month low, amid weaker-than-estimated economic data and on growing concern that credit ratings for Spanish banks will be cut. On the energy futures front, the Brent crude future is trading down by 1.49% at 108.11 $/bbl and the WTI crude future is trading down by 0.28% at 92.55 $/bbl.

TURBULENCE

The markets opened with a gap down, tracking its Asian peers and traded for the entire day, with a strong negative bias and by the time the European markets opened, things became worse and  the Nifty reached very close, to the the intraday support of 4834 and ultimately both Nifty and the Sensex closed down by 84 and 298 points respectively. The market breadth was extremely negative with 388 advances to 1075 declines. There was across the sector selling, but the biggest looser was the Banking sector, followed by the FMCG, Auto and  the IT sectors. However BPCL, Power Grid and CAIRN were the few stocks, which bucked the trend. On the institutional side, FIIs were net sellers to the tune of, a massive 547 crores, while the DIIs were net buyers to the tune of, merely 172 crores in the  cash market.

On the derivatives side, the FIIs sold Index futures worth 756 crores and brought Stock futures worth 92 crores. Nifty future closed at 4857, with 1 point discount to the spot, along with a moderate increase in open interest. On the options side PCR was marginally down to 0.94, along with a jump in the India VIX by 6.42%. On the Call options side, the 4900 call added the maximum open interest, followed by the 4800 & 5000 calls, while the 5200 call lost the maximum open interest, followed by the 5400 & 5300 calls. On the Put options side, the 4900 put lost the maximum open interest, followed by the 5000 & 4800 puts. The activity in the F&O space indicates massive call writing, happening at the lower levels , which is a indicator of more shorts building up in the system and ultimately creating more downward pressure on the markets.

On the technical side, Nifty has breached another crucial level of 4900, and there seems to be no let-off in the selling pressure. Inspite of all the indicators in the oversold zone , the market is trending downwards. The levels to watch out for Nifty will be 4881, 4904 and 4926 on the upside and 4836, 4814 and 4791 on the downside. On the currency front the rupee depreciated further and touched the all time low of 54.52 and the USD-INR future closed at 54.64.

On the international market front, the Asian markets have closed deep in the red, while the European markets recovered some of their losses and ended almost flat, and the U.S. markets are trading in the green on the back of better- than-estimated reports on housing starts and industrial production, which bolstered confidence in the world’s largest economy. On the energy futures front, both Brent and WTI crude futures are trading down by 0.83% at 110.53 & 93.21 $/bbl respectively.

 

RELIEF ??

The markets opened on a flat note and continued to trade in the same range, for the next one hour of the trading session. Just when it seemed that the markets will go the same way, they have been trading for the last two weeks, to everyone's surprise the market's started strengthening and from that point onwards, there was no looking back and the markets touched their intraday highs at the start of the second half of the trading session. Well it was not a straight upward surge, it was stopped intermittently by several bouts of selling. Ultimately both Nifty and Sensex closed up by 35 and 112 points respectively. The market breadth was mildly positive with 789 advances to 663 declines. On the sectoral front, the IT sector was the biggest gainer followed by the Banking, Metals and Pharma sector, on the other hand the FMCG sector was the biggest looser of the day. On the institutional side, both the FIIs and DIIs were net sellers to the tune of 184 & 43 crores respectively.

On the derivatives side the FIIs sold Index futures worth 67 crores and brought Stock futures worth 90 crores. Nifty future closed at 4942, with 1 point discount to the spot, along with a considerable loss of open interest. On the options side the PCR marginally increased to 0.96, along with a fall in the India VIX by 4.21%. On the Call options side, the 4900 call lost the maximum open interest, followed by the 5400,5300 & 5600 calls, on the other hand 5200 call added the maximum open interest, followed by the 5100 & 5000 calls. On the Put options side, the 5200 put lost the maximum open interest, followed by the 5100 & 5300 puts, on the other hand the 4800 put added the maximum open interest, followed by the 4700 & 4900 puts. The activity in the F&O space as well as the cash markets indicates , that today's rally was mainly due to short covering on the futures side and as expected it was used as selling opportunity by the market participants in the cash market.

On the technical side, spot Nifty hit the overhead resistance of 4953, and managed to close near it. Today's move was insignificant, and the market movement for the next few sessions, will be closely watched, in order to arrive at a meaningful conclusion.The levels to watch out for  Nifty will be 4975, 5011 & 5067 on the upside and 4888,4834 & 4801 on the downside. On the currency front, the rupee appreciated considerably and the USD-INR future closed at 53.95.

On the international front, most of the Asian and the European markets have closed deep in the red, but the U.S. markets have rebounded from their 3 month lows, on the back of better-than-forecast economic data, which offset Greece’s struggle to form a new government as the nation planned new elections. On the energy futures front, Brent crude future is trading up by 0.38% at 111.99 $/bbl, while the WTI crude future is trading down by 0.36% at 94.44 $/bbl.

DOWNTREND

Surprisingly the markets opened on a positive note, but after the first two and a half hours of the trade, the news of worse than expected inflation figures spooked the markets, and by the time the European markets opened, the markets reacted by touching the intraday lows, at the start of the second half of the trading session, but staged a smart recovery, at the  fag end of the trading session and ultimately both Nifty and the Sensex closed down by 21 and 77 points respectively. The market breadth was extremely negative with 455 advances to 1014 declines. On the sectoral front, the banking sector was the biggest looser, followed by the Energy and the  Midcap sector. However, Asian Paint, Ranbaxy, Sesa Goa and BPCL were the star performers of the day. On the institutional side the FIIs were net buyers to the tune of 355 crores, while the DIIs were net sellers to the tune 145 crores in the cash market .

On the derivatives side the FIIs were net sellers in Index futures to the tune of 327 crores, and net buyers in the Stock futures to the tune of 279 crores. Nifty future closed at 4888, with a discount of 20 points to the spot, along with a considerable addition of open interest. On the Options side, the PCR fell to 0.94, along with a  gain in the India VIX by 3.47%. On the Call options side , the 4900 call added the maximum open interest, followed by the 5200, 5000 and 4800 calls, while on the Put options side the 5000 put shed the maximum open interest, followed by the 5100 and 5200 puts, but the 4700 put added the maximum open interest followed by the 4800 put. The activity indicates that more shorts are building in the Index options, with each passing day, which has been validated by the fact that Nifty future, has closed at a discount, along with a massive  build up of open interest and every rise will be used as a selling opportunity. 

On the technical side, most of the indicators, on both the daily and weekly charts are in oversold zone, but in absence of any divergence, the strong downtrend will continue for some more time, and  with Nifty breaching every support level on huge volumes, the levels to watch out for Nifty will be 4953, 4995 & 5014 on the upside, and 4868, 4829 and 4785 on the downside. On the currency front, the rupee further depreciated and the USD-INR future closed at 54.12

On the international market front, the European markets have closed deep in the red, and the U.S. markets have also declined, as Greece struggled to form a new government amid growing speculation the nation may leave the euro region. On the Energy futures front, both Brent and WTI crude futures are trading down by 1 & 1.5% at 111.14 & 94.64 $/bbl respectively.

BACK TO SQUARE ONE

The markets were back to their loosing ways on Friday, after a subtle fightback on Thursday. Both the indices opened on a negative note and touched their intraday lows, within the first two hours of the trading session, but staged a smart recovery at the start of the second half of the trading session, before falling once again, and both Nifty and the Sensex closed near the lowest point of the day, down by 37 and 127 points respectively. The market breadth was extremely negative with 445 advances to 1030 declines. On the sectoral front, the FMCG sector was the biggest looser, followed by the Pharma and Midcap shares. JP Associate, Tata motors, Bajaj Auto & Sesa Goa were the star performers of the day. On the Institutional side FIIs were net buyers to the tune of 159 crores, while the DIIs were net sellers to the tune of 243 crores.

On the derivatives side, FIIs were net sellers, both in Index and Stock Futures to the tune of 379 and 49 crores respectively. Nifty future closed at 5231, with just 2 points premium to the spot, along with a considerable addition of open interest. On the options side, PCR fell  to 1.03, along with a fall in the India VIX by 1.06%. On the Call options side, 4900 call added the maximum open interest followed by the, 5100, 5200 and 4800 calls, while on the Put options side, with a exception of 4800 put, which added the maximum open interest, there was considerable loss of open interest from 4900 to 5600 puts. The 5000 put lost the maximum open interest, followed by the 5100 and 4900 puts.The entire activity in the F&O space indicates massive shorts building up in the system along with profit booking in the deep in - the money puts, indicating the downtrend becoming stronger day by day.

On the technical side, Nifty almost touched, its four month low of 4904. Most of the indicators are in the oversold territory, but the data from the F&O space doesn't show any respite. So, now  there is a real possibility of markets touching their December lows, before making any meaningful comeback. Going forward the markets will be closely watching, both the Macro and micro economic data. The levels to watch out for Nifty will be 4967, 5006 and 5038 on the upside and 4888, 4866 & 4827 on the downside.

On the international market front, except Europe which closed almost flat, the U.S. stocks fell for a second straight week, driving the Dow Jones Industrial Average to the biggest loss of 2012, as political tension in Greece heightened concern about Europe’s debt crisis and JPMorgan Chase & Co. (JPM)’s $2 billion trading loss weighed on shares of banks.

On the energy futures front , both Brent and WTI crude futures were trading down , close to a percent at 112.26 and 96.13 $/bbl respectively.

INDECISIVE

The markets opened on a positive note, and continued to trade in the green, till the end of the first half of the trading session, but gradually pared all the gains and eventually entered the negative zone at the start of the second half of the trading session and ultimately both Nifty and the Sensex ended down by 9 and 60 points respectively. The market breadth turned negative by the end of the session with 616 advances to 852 declines. CAIRN,IDFC,BPCL,AXIS BANK & DLF were the  star performers of the day. On the institutional side FIIs turned net buyers to the tune of 317 crores  while the DIIs were net sellers to the tune of 143 crores in the cash market.

On the derivatives side, the FIIs were net buyers, both in the Index and Stock Futures to the tune of 46 and 161 crores respectively. Nifty Future closed at 4967, with just 1 point premium to the spot, with a moderate increase in open interest. On the options side the PCR increased to 1.10, along-with a moderate fall in the India VIX by 1.36%. On the Call options side, with a exception of the 5600 call there was considerable addition of open interest from 4800 to 5500 calls, with the maximum open interest build up at 5100 call followed by the 5000 and 5200 calls, while on the Put options side, 5000 put lost the maximum open interest, but the 4900 put added the maximum open interest, followed by the 4700 and 4800 puts. The activity in the F&O space indicates massive call writing at all levels for the fourth consecutive session, along with profit booking in  all the, deep in-the money puts, which indicates the downward pressure on the market, and every rise is used as a selling opportunity by the market participants.

On the technical side, most of the indicators, indicate that the markets, have entered the oversold zone on the daily charts, and the almost flat closing for the markets for the last two sessions, indicates some level of consolidation setting in. The levels to watch out for Nifty will be, 5019, 5081 and 5108 on the upside and 4930, 4895 and 4841 on the downside. On the currency front, the rupee depreciated further and the USD-INR future closed at 53.61.

On the international market front, the European markets have closed in the green, and the U.S. markets have risen from their two month lows on the back of, attempts by Greece to form a new government and a decline in American jobless claims, which has  helped allay concern of a labor market setback.On the energy futures side both Brent and WTI crude futures are trading at 113.02 and 97.24 $/bbl respectively.

WEAKNESS

Once again the markets opened with a gap down, for the fourth time in the last five trading sessions, but within the next two hours of the trading session, the markets recovered and continued to trade in the positive territory, but with a series of ups and downs , exposing the extremely negative undercurrent of the market. The markets finally broke down towards the end of the first half of the trading session, overwhelmed by the selling pressure and touched the lowest point of the day and could not recover much from the lows and eventually both , Nifty and the Sensex closed down by 25 and 67 points respectively. The market breadth was extremely negative with 404 advances to 1066 declines. With a exception of FMCG, there was across the sector selling, and the biggest looser were the Banking shares, followed by the Energy and Midcap shares. The star performers of the day were ITC, Ranbaxy & Bajaj Auto.

On the derivatives side Nifty future closed at 4984, with 9 points premium to the spot, along-with a moderate fall in open interest.On the options side the PCR increased to 1.06, along with a spike in the India VIX by 3.97%. On the Call options side, with a exception of the 4800 and 5600 calls, there was considerable addition of open interest from 4900 to 5500 calls, with the maximum addition  happening at the 5000 call, while on the Put options side , there was considerable shedding of open interest from 5000 to 5600 puts, but the 4900 put added the maximum open interest followed by the 4800 put. The entire activity in the F&O space indicates more shorts building up in the index options, with the breach of every support level. The levels to watch out for Nifty will be 5008, 5025 & 5042 on the upside and 4948, 4922 & 4888 on the downside. The rupee depreciated once again and the USD-INR future closed at 54.10.

On the international market side, the European markets have closed almost flat and the U.S.markets are also trading flat on the back of a report that Europe’s bailout fund will pay the next installment of aid to Greece, easing concern that the nation won’t qualify for rescue funds as political leaders oppose to austerity. On the energy futures side both Brent and WTI crude futures are trading flat, even after a rise in the U.S. crude oil inventories. The Brent and WTI crude futures are trading at 112.80 & 96.74 $/bbl respectively.

FASTEN YOUR SEAT BELTS

The markets opened on a negative note for the fifth consecutive session, and within the first two hours of the trading session, touched the intermediate lows of the day, but once again recovered from the lows and started trading flat within the next half an hour, from that point onwards the markets started falling once again and by the time, the European markets opened, it was a point if no return and all hell broke loose. The markets broke all the crucial support levels on heavy volumes and finally both the Nifty and Sensex closed at the lowest point of the day, down by 114 and 367 points respectively. The market breadth was extremely negative with 456 advances to 1006 declines. There was across the sector selling, but the biggest looser, was the FMCG sector followed by the Banking and Midcap sectors. GAIL,Coal India and Hindalco were the only performers of the day. On the institutional side the FIIs were net sellers to the tune of 399 crores, while the DIIs were net buyers, to the tune of 257 crores in the cash market,

On the derivatives side FIIs were net sellers, both in Index and Stock futures to the tune of 76 and 104 crores respectively. On the options side the PCR fell to 0.94, along-with a massive rise in the India VIX by 9.59%. On the Call option side, with a exception of the 5600 call, there was massive addition of open interest from 5000 to 5500 calls, while on the Put options side, with a exception of the 5000 & 5500 puts, there was considerable shedding of open interest from 5100 to 5600 puts. Nifty future closed at 5005, with just 5 points premium to the spot,  with a massive addition in open interest. The entire activity in the F&O space indicates huge shorts building in the index future and options, which is evident from the massive call writing at all levels and indicates more pain for the markets in the days to come.

On the technical side, a engulfing bearish pattern has formed on the daily candlestick chart and most of the indicators, indicating that the markets are very close to entering the oversold zone. A engulfing bearish pattern during a downtrend, indicates a bullish reversal and the markets may be very close to bottoming out. With the crucial level of 5050, being breached, the levels to watch out for Nifty will be 5050, 5086 & 5170 on the upside, and 4957, 4898 & 4813 on the downside. The rupee appreciated a bit and the USD-INR future closed at 53.38.

On the international market front, the European markets have closed deep in the red and the U.S. markets at trading at their two month lows, on the back of concerns ,whether a stable government will be formed in Greece and doubts regarding the implementation of the austerity measures, may cause Greece to exit the Eurozone. With analysts firmly believing that its only a matter of time , before Greece exits the Eurozone, the fears of the contagion spreading throughout the globe , have increased. On the energy futures side, both Brent and WTI crude futures are trading down by 1.52% & 1.90% at 111.44 and 96.08 $/bbl respectively.

SCARY

The markets opened with a gap down, tracking its Asian peers and the situation turned worse when the markets touched their lowest levels, within the first half of the trading session, but slowly   the markets started to recover in the second half and by the time the most eagerly awaited announcement on GAAR provisions came, the markets had recovered  some of their losses and the positive news led the markets, all the way up into the positive zone and ultimately both Nifty and Sensex closed up by 27 and 82 points respectively. The extremely negative market breadth, remarkably turned positive by the end of the session with 759 advances to 693 declines. The gains were led by Banking sector, followed by the Infrastructure, Auto and Metal sector, on the other hand, FMCG sector was the under-performer of the day. The star performers of the day were BHEL, BPCL, LT, Jindal Steel & DLF. On the institutional side, FIIs turned net sellers to the tune of 631 crores, while DIIs were net buyers to the tune of 274 crores in the cash market.

On the derivatives side the FIIs were net sellers both in the Index and Stock Futures, to the tune of 59 and 591 crores respectively. On the options side PCR stayed at 0.98, along with a fall in the India VIX by 4.26%. On the Call options side, with a exception of 5500 call, there was massive addition of open interest from 5000 to 5600 calls, while on the Put options side there was considerable shedding of open interest from 5000 to 5600 puts. Nifty futures closed at 5126, with just 9 points, premium to the spot, along-with a moderate fall in open interest. The entire activity in the F&O space, indicates massive call writing at all levels in the market, which shows that the markets are still not out of the woods and every rise will be used as a selling opportunity.

On the technical side,Nifty managed to close above the psychological mark of 5050, but it remains to be seen how Nifty will cover the two gaps, created on its way down, in order to make the up-move more credible. The level to watch out for Nifty will be 5162, 5208 and 5235 on the upside and 5050, 5026 & 4939 on the downside.

On the international markets front, except FTSE, all the European markets have closed flat on the back of, mixed economic data and election results, while the U.S. markets are trading in the green. On the energy futures front both Brent and WTI crude are trading down by 0.21% and 0.76% at 112.94 and 97.74 $/bbl respectively.

MAYHEM

The markets once again started off, on a negative note, with the participants oblivious to the mayhem that lie ahead. Everything seemed to be normal because of the previous day's closing of the international markets, but after the initial two hours of the trading session, the cuts became deeper and both the indices plunged to their lowest levels since January and closed the week near the lowest levels. The Nifty and the Sensex closed down by, 101 and 320 points respectively. The market breadth was negative or one should say grim, with 259 advances to 1230 declines.  There was across the sector selling, with the biggest cut coming from the Banking sector, followed by the Midcap, Energy and FMCG shares. The standalone performance came from  CIPLA, on the back of drastic cut in prices of its cancer drugs and the management, as well as the brokerage houses reiterating their confidence on the out-performance of the company.On the institutional side the scenario was a bit different, with the FIIs turning net buyers to the tune of 428 crores while the DIIs were net sellers to the tune of 280 crores in the cash market.
On the derivatives side the scenario was just the opposite, where FIIs were net sellers both in the Index futures and Stock futures to the tune of 1038 and 178 crores respectively. Nifty futures closed at 5098, with just 11 points premium to the spot, and a massive addition of open interest. On the options side the PCR stayed at 0.98, but there was a massive jump in the India VIX by 9.71%. On the Call options side, with a exception of the 5600 call, there was massive addition of open interest from 5000 to 5500 calls, while on the Put options side, with a exception of 5000 put, there was considerable shedding of open interest from 5100 to 5600 puts. The activity in the F&O  space clearly indicates shorts building up in the system and things might get worse from these levels, unless some thing positive happens on the government policy front. The prime reason for the carnage on Dalal street, seems to be the fear, regarding the GAAR provisions applicable to FIIs, and on the international front, the outcome of the elections in Europe, which seemed to weighing very heavily both on the international markets as well as the FIIs investments in India.
On the technical side, in  the last two sessions we have seen gap down openings and all major supports have been taken out on huge volumes, indicating no respite and we may see some some more downside in the next few sessions. Going forward, the levels to watch out for Nifty , will be 5105, 5150 and 5211 on the upside and 5045, 5004 on the downside. The rupee depreciated further and the USD-INR future closed at 53.78.
On the international market front both the European and U.S. markets have ended deep in the red. On the energy futures front both Brent and WTI crude futures have closed down by 2.50% and 3.95%, at 113.48 & 98.49 $/bbl.

ROUGH TIMES AHEAD

The markets opened on a strong negative note, tracking their European and U.S.peers, and stayed range bound till the second half of the trading session, but the real crack appeared around 2.30 p.m. when the markets touched the lowest point of the day and could not recover from those levels  and ultimately both the indices closed near the lowest point of the day. The Nifty and the Sensex closed down by 51 and 151 points respectively. The market breadth was extremely negative with 429 advances to 1046 declines. There was across the sector selling, but the major cuts came from the Banking and Auto sector followed by the Midcap and Energy sector, the only exception was the IT sector which ended up in the green, mainly on the back of depreciating rupee. Asian paints, Hind Unilever and Wipro were the only performers of the day.The negative breadth was also reflected on the institutional side, where FIIs were net buyers to the tune of merely 75 crores, while the DIIs were net sellers to the tune of 347 crores in the cash market.

On the derivatives side also, the FIIs were net sellers in both Index and Stock Futures to the tune of  237 and 216 crores respectively. Nifty futures closed at 5200, with just 12 points premium to the spot, along-with a moderate increase in open interest. On the options side the PCR marginally increased to 0.98, with a corresponding increase of 3.83% in the India VIX. On the Call options side there was considerable increase in open interest from 5000 to 5600 calls, while on the Put options side, there was considerable shedding of open interest from 5200 to 5600 puts, with a exception of 5100 put which added the maximum open interest followed by the 5000 put. The entire activity in the F&O space , shows how the entire scenario has changed within a single trading session, where the participants tend to go short on the slightest signs of weakness. Nifty futures added shorts, which was accompanied by massive call writing at all levels. To make matters worse there is no dearth of negative news flow from the international markets.

On the technical side, the 5150 level has still held strong and the levels to watch out for Nifty will be 5210, 5234 & 5246 on the upside and 5173, 5158 & 5136 on the downside. The rupee hit its 4 - month low and the USD-INR futures closed at 53.71.

On the international front, the European markets have closed in the red, on the back of worst than expected housing and services data and the U.S. markets are also trading in the red, because the unexpected fall in the  ISM non-manufacturing figures have overshadowed the unexpected fall in jobless claims data. On the energy futures front both the Brent and WTI crude futures are trading down by 1.71% and 2.53% , at 116.58 & 102.56 $/bbl respectively.

WAIT AND WATCH

The markets opened on a very strong note, but gradually weakened in the second half and entered the negative zone by the time the European markets opened, but tried to recover the losses and somehow stayed in the positive zone till 3 p.m., but eventually lost all the gains in the last half an hour and both Nifty and Sensex ended down by 9 and 17 points respectively. The market breadth also turned negative with 660 advances to 792 declines. Most of the sectoral indices closed flat or marginally down. DLF, Bharti Airtel, SAIL and PNB were the star performers of the day. There was moderate participation from the institutional side, where both FIIs and DIIs were net buyers to the tune 237 crores and 71 crores in the cash market.

On the derivatives side FIIs brought Index futures worth 80 crores and sold Stock futures worth 125 crores. Nifty futures closed at 5247, with just 8 points premium to the spot, along-with a moderate fall in open interest. On the options side PCR fell to 0.92, along with 4.04% rise in the India VIX. On the Call options side, with a exception of 5000 and 5200 calls, there was considerable addition of open interest from 5100 to 5600 calls, while on the Put options side, with  a exception of 5000 put, there was considerable addition of open interest from 5100 to 5500 puts. The entire activity in the F&O space indicates some profit booking in the Nifty futures and at the same time addition of longs on the call side and put writing at higher levels. This action proves  that the market participants are willing to bet on the 5150 level , for going long on the Nifty.

On the technical side, spot Nifty crossed the 5250 and 5273 resistance levels, before closing at  and 5239 for the day, validating the action in the F&O space. The levels to watch out for Nifty will be 5270, 5301 & 5323 on the upside and 5213,5195 & 5163 on the downside. The rupee depreciated further and the USD-INR futures closed at 53.27.

On the international market side the European markets have closed in the red and the U.S. markets are also trading in the red on the back of worse than expected unemployment figures from the Eurozone, particularly Germany and also from the U.S. On the energy futures side both, Brent and WTI crude futures are trading lower by 1.12% and 0.79% at 118.32 and 105.32 $/bbl respectively, on the back of rise in U.S. crude oil inventories for the week.

RELIEF

The markets opened on a much anticipated positive note, after a series of dull sessions and both the indices maintained the positive momentum till the end of the session and both Nifty and Sensex closed up by 39 and 131 points respectively. The overall market breadth was positive with 852 advances to 622 declines. The only exception was Bank Nifty, which gave up most of its gains, after the news from Moodys , put the ratings of the three private banks namely, ICICI Bank, HDFC Bank and Axis Bank, under review and the stocks reacted accordingly and dragged the Bank Nifty downwards. The star performers of the day were TCS, Jindal steel and Power Grid. There was decent participation from the institutional side and after a long time both FIIs and DIIs turned net buyers to the tune of 479 and 247 crores respectively in the cash market.

On the derivatives side FIIs were net buyers in both Index and Stock Futures to the tune of 275 and 75 crores respectively. Nifty futures closed at 5268, with 20 points premium to the spot along-with a considerable addition of open interest. On the options side PCR fell to 1.0, along-with a increase in the India VIX by 1.67%. On the Call options side with a exception of 5000 and 5200 calls, there was considerable addition of open interest from 5100 to 5600 calls, while on the Put Options side 5200 put added the maximum open interest, followed by the 5100 and 5300 puts. The entire activity in the F&O space indicates that the odds are still stacked against the upside momentum and it will take a few more robust sessions for the markets to resume a uptrend, which will mainly come from liquidation of shorts. 

On the technical side Nifty touched the resistance of 5254 and closed very near to it, which is a encouraging sign, but much remains to be seen how the markets trade for the rest of the week. The levels to watch out for Nifty will be 5273, 5298 & 5305 on the upside and 5213, 5176 & 5151 on the downside.The rupee depreciated further and the USD-INR futures closed at 53.05.

On the international market front, with a exception of Asian markets the European and U.S. markets are trading in the green on the back of good economic data. On the energy futures side, the WTI and Brent crude futures are trading in the green at 106.02 and 119.78 $/bbl respectively.