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.