ECSTATIC

What a day ? its was. Just opposite to everybody's expectations, the markets shot over the roof, bringing some relief to the battered investor's, just like the monsoon's are about to bring to the, whole of India, from the scorching heat. The markets opened on a positive note and gradually gained momentum, as the session progressed, but the momentum gathered more pace at the start of the second half of the trading session and the markets touched their intraday high in the last half an hour of the trading session, before cooling off a bit to close near the day's high. The Nifty and the Sensex closed up by 134 and 434 points respectively. The market breadth was extremely positive, with 1168 advances to 319 declines. On the sectoral front, it was the day of the interest rate sensitives, with the Banking sector leading the way, followed by the Auto, Energy and the Midcap sector. On the individual stock front, there were a string of star performers for the day, with Tata Motors leading the way, followed by HeroMotocorp, Jindal Steel, Rel Infra and Ambuja Cement. On the institutional side, surprisingly both FIIs and DIIs were net buyers to the tune of 269 and 489 crores respectively, in the cash market.

On the derivatives side FIIs sold Index futures, worth a mere 40 crores and brought Stock futures, worth a massive 578 crores. Nifty future closed at 4978, with the discount increasing to 19 points, to the spot, along with a moderate loss of open interest. On the Options side, the PCR increased to 1.03, along with a fall in the India VIX by 1.36%. On the Call options side, the 4900 call, lost the maximum open interest, followed by the 4800, 4700 & 5000 calls, on the other hand the 5200 call added the maximum open interest, followed by the 5300 & 5100 calls. On the Put Option side, the 4800 put added the maximum open interest, followed by the 4900 & 5000 puts. The entire activity in the F&O space, indicates there was massive short covering, which led to today's rally. However the silver lining amidst the clouds, was that the FIIs were net buyers in the spot as well as stock futures. 

On the technical side, Nifty has managed to conquer the crucial levels of 4888 and 4950, for the day, on the back of a purely technical pullback, from the oversold levels. The strong pullback in the last three session, including today's pullback, has led to reversal signs in the indicators, both on the daily and the weekly charts, suggesting the momentum might continue for some more time. The levels to watch out for Nifty, will be 5027, 5047 & 5088 on the upside, and 4948,4912 & 4840 on the downside. On the currency front, the Rupee appreciated once again and the USD-INR future closed 55.56 for the day.

On the international markets front the Asian and the European markets have closed on a strongly positive note after the ECB president Mario Draghi said " officials stand ready to act as the Euro regions growth outlook worsens". The U.S. markets are also trading on a firm note, before the Fed publishes its "Beige book survey of business conditions in 12 national districts today". On the energy futures front, both the Brent and the WTI crude futures are trading strongly in the green at 100.67 & 85.27 $/bbl respectively.