JUBILANT

The benchmark indices opened on a flat note, but gradually gained momentum with passage of time and with just one hour left for the end of the day’s session, both the indices touched their intraday highs and ultimately closed near their day’s high. The Nifty and the Sensex closed, up by 54 and 189 points respectively. The market breadth was also positive with 822 advances to 656 declines. On the sectoral front, the Banking sector was the biggest gainer, followed by the IT, FMCG and Auto sectors. On the individual stocks front, Tata Motors, IDFC, Gail, Ambuja Cement & TCS were the top five Nifty gainers for the day, on the other hand Power Grid, HeroMotocorp, Cairn, BPCL & Bharti Airtel were the top five Nifty losers for the day. On the institutional side, FIIs & DIIs were net buyers to the tune of 816 & 55 crores respectively in the cash market.

On the derivatives side, the FIIs were net buyers, for the second consecutive session in both Index and Stock Futures to the tune of 677 & 542 crores respectively. Nifty futures settled at 5348, with 11 points premium to the spot, along with a considerable increase in open interest. On the Options side, the PCR increased to 1.08, along with a marginal increase in the India VIX by 0.06%. On the Call options side, the 5300 call lost the maximum open interest, followed by the 5200, 5000 & 5100 calls, while the 5500 call added the maximum open interest, followed by the 5600 call. On the Put options side, the 5300 put added the maximum open interest followed by the 5200 & 5100 puts, while the 4700 put lost the maximum open interest, followed by the 4900 & 4800 puts. The entire activity in the Cash and F&O space, once again indicates addition of fresh longs in the cash as well as the futures side, along with profit booking at lower levels on the options side.

On the technical side, Nifty managed to close above the 5300 mark, with slight increase in volumes, raising the possibility of a breakout. The Nifty is trading above most of its short and long term moving averages on the daily and weekly charts and with most of the indicators in supportive mode, tomorrow’s session will be crucial for any trend to be established. The levels to watch out for Nifty, will be 5364, 5391 & 5433 on the upside and 5295, 5253 and 5226 on the downside. On the currency front the Rupee rose to a three week high, extending the gains for the third consecutive session on the back of more favorable global risk environment and large dollar sales by domestic companies. The rupee finally settled at 55.06, while the near month USD-INR future settled at 55.26 for the day.

On the international market front the Asian and the European markets have closed on a positive note, while the U.S. markets have risen for the third straight session, on the back of better than estimated corporate earnings and speculation that global central banks will take steps to boost economic growth. On the energy futures side, both the Brent and WTI crude futures are trading on a very firm note at 112.11 & 93.94 $/bbl respectively, while the Natural Gas future is trading up by 1.39% at 2.94 $/MMBtu.