SHAKY

The markets opened on a flat note and continued to trade with a strong negative bias throughout the day and ultimately both the Indices closed in the negative zone. The Nifty and the Sensex, closed down by 10 and 18 points respectively, for the week. The overall market breadth was extremely negative with 597 advances to 913 declines. On the sectoral front, there was hardly any activity, but still the FMCG sector managed to close with the biggest gain, while the Midcap and the IT sector suffered the maximum losses. On the individual stocks front, Icici Bank, M&M, and Hinduilver, managed to outperform the markets. On the institutional side, still the FIIs were net buyers to the tune of 429 crores, while the DIIs were net sellers to the tune of 203 crores.

On the Derivatives side the FIIs were net sellers, both in the Index and Stock futures, to the tune of 330 and 187 crores respectively. Nifty future closed at closed at 5327, with just 10 points premium to the spot, along with a moderate fall in open interest. On the option side, the PCR fell to 1.00, along with a increase in the India VIX by 1.69%. On the Call options side, the 5500 call added the maximum open interest, followed by the 5600 & 5300 calls, while the 5400 & 5200 calls lost the maximum open interest. On the Put option side, the 5100 put added the maximum open interest, followed by the 5200, 4900 & 5000 puts, while the 4700 put lost the maximum open interest, followed by the 4600 put. The entire activity in the F&O space, indicates some level of profit booking after five consecutive sessions of gains.

On, the technical side, Nifty managed to close in the sweet spot, above the 5300 level for the third consecutive session with a mild decrease in volumes. Nifty has managed to close above most of its short and long term exponential moving averages and the indicators on the daily and weekly charts are still in the buy mode, indicating further strength in the market. The levels to watch out for Nifty, will be 5333, 5349 & 5388 on the upside, and 5294, 5271 & 5255 on the downside. On the currency front, the Rupee fell for a third straight session, and closed at the lowest level for the week at 55.42, while the USD-INR future settled at 55.72 for the week. The rupee has been mainly falling after the monetary easing by central banks of Eurozone, Britain and China sparked worries about global economic growth.

On the international markets front, the Asian, European and the U.S. markets closed deep in the red, for the week and the dollar climbed to the highest level since September, against the Euro as investors sought refuge after U.S. job growth fell short of forecasts and the European Central Bank said the region’s economy still faces risks. The effect was clearly visible on the commodities side with both the precious metals and energy futures closing deep in the red, for the week. On the precious metals side Gold closed down by 1.90% at 1578.90 $/t.oz, while Silver closed down by 2.72% at 26.92 $/t.oz. On the energy futures side, both the Brent and the WTI crude futures closed 2.49 & 3.18% at 98.19 & 84.45 $/bbl for the week, while the Natural gas future closed down by 5.74% at 2.77 $/MMBtu for the week.