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.
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