ECSTATIC

The markets opened on a positive note, and continued to trade the same way, but after the initial two hours of the trading session the markets gained strength, and the real shot in the arm came after the European markets opened and from this point onwards, it was a almost vertical rise. Ultimately both the indices closed near the highest point of the day. The Nifty and the Sensex closed near their four month highs, up by 70 & 226 points respectively. The market breadth was extremely positive with 974 advances to 503 declines. On the sectoral front, the FMCG sector was the biggest gainer, followed by the Banking, Midcap and Auto sectors. On the individual stocks front, there were quite a few, like Axis Bank, JP Associate, Rel Infra, PNB & Bank of Baroda, which managed to outperform the markets. On the institutional side, the FIIs were net buyers to the tune of 607 crores, while the DIIs were net sellers to the tune of 488 crores in the cash market.

On the derivatives side, the FIIs sold Index futures worth 207 crores, and brought Stock futures worth 91 crores. Nifty future settled at 5358, with 13 points premium to the spot, along with a considerable increase in open interest. On the Options side, the PCR increased to 1.15, along with a fall in the India VIX by 4.75%. On the Call options side, the 5600 call added the maximum open interest, followed by the 5500 & 5400 calls, on the other hand the 5300 call lost the maximum open interest followed by the 5200 call. On the Put options side, the 5300 put added the maximum open interest, followed by the 5400, 5200 & 5000 puts. The activity in the F&O as well as the cash market indicates fresh buying along with addition of fresh longs, further strengthening the uptrend, which had taken a pause for the last two sessions.

On the technical side, Nifty reached very close to yet another milestone of 5350, and once again managed to close above the 5300 mark, with increase in volumes, indicating strength of the uptrend. With the resumption of the uptrend once again, the levels to watch out for Nifty, will be 5367, 5389 & 5410 on the upside and 5303, 5261 & 5245 on the downside. On the currency front, the Rupee snapped its four-day losing streak buoyed by strong gains in local stocks and dollar sales by exporters. The rupee closed up, nearly by 1 percent at 55.39 for the day, while the USD-INR future finally settled at 55.57 for the day.

On the international markets front, the Asian markets have closed in the red, while the European markets have closed in the green, while the U.S. market are trading in the red as concerns over technology earnings overshadowed the optimism over the steps taken by the European officials to protect the Spanish banks. On the energy futures front, both Brent and WTI crude futures are trading down by 1.27 and 0.83% at 99.03 & 85.28 $/bbl respectively, while the Natural gas future is trading down by 2.98 % at 2.79 $/MMBtu.