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.