EXPECT THE UNEXPECTED.

The markets opened on a strong note, and gained strength, with every passing hour of the trading session and touched their intraday highs, with just one hour left for the end of the trading session and ultimately closed near the highest point of the day. The Nifty and the Sensex closed up by 84 and 272 points respectively. The market breadth was positive throughout the day with 823 advances to 611 declines. On the sectoral front, the Banking sector was the biggest gainer followed by the FMCG, Auto and the IT sectors. On the individual stocks front, Grasim, Tata Motors, Ambuja Cement, Rel Infra, ACC & PNB were the star performers for the day. On the institutional side, the FIIs were net buyers to the tune of 339 crores, while the DIIs were net sellers to the tune of 121 crores in the cash market.

On the derivatives side, the FIIs brought Index futures worth 197 crores and sold Stock futures worth 193 crores. Nifty future closed at 5148, with 9 points premium to the spot, along with a considerable increase in open interest. On the options side, PCR marginally fell to 1.01, along with a slight fall in the India VIX by 0.66%. On the Call options side, the 5100 call lost the maximum open interest, followed by the 5000 call, on the other hand the 5500 call added the maximum open interest, followed by the 5400 & 4900 calls. On the Put options side, the 4600 put added the maximum open interest, followed by the  5100, 5000 & 4800 puts. The entire activity in the F&O space, indicates fresh longs in the index futures along with liquidation of shorts on the options side, manly on the expectations of a favorable outcome of the Greece elections and affirmative action by the RBI on Monday.

On the technical side, surprisingly Nifty conquered the 5100 level and managed to close comfortably above it , with huge volumes. Its clearly visible that the smart pullback has happened on the speculation of positive news flow, while fundamentally nothing has changed on the ground, within a single day. Well as we say, flow with the tide, there is no point fighting with the logic when the emotional aspect of the markets overpowers the logical side. The levels to watch out for Nifty, will be 5167, 5195 and 5216 on the upside and 5094, 5057 & 5025 on the downside. On the currency front, the Rupee, the rupee appreciated considerably and the USD-INR future closed at 55.60 for the week.

On the international markets side, the Asian and the European markets closed on a strongly positive note, and even the U.S. markets managed to close on a firm note, even as economic data disappointed mainly on three fronts (i) Unexpected fall in industrial production in May, for the second time in three months. (ii) Decline in consumer confidence, to the lowest level in June, this year. (iii) Manufacturing in New York expanded in June, at the slowest pace in the last seven months. Once again its is clear that the U.S. markets, also rallied amid speculation that global central banks will take steps to boost economies as investors await Greek elections this weekend.

Even on the commodities side, all the major commodities including Crude, bullion and industrial metals managed to close on a strongly positive note in anticipation of good news flow.