EDGY

The markets opened with a gap down, tracking their Asian peers, but slowly recovered and traded with a negative bias throughout the entire trading session and ultimately both the indices closed almost flat for the day. The Nifty and the Sensex closed down by 21 & 56 points respectively. The market breadth was negative with 662 advances to 854 declines. On the sectoral front, the Energy sector was the biggest loser followed by the Banking, Pharma & IT sectors. On the individual stocks front, Tata Motors, Bharti Airtel, Wipro, Asian Paint & DLF were the top five Nifty gainers while GAIL, LT, Tata Power, Rel Infra & IDFC were the top five Nifty losers for the day. On the institutional side, surprisingly both FIIs and DIIs were net buyers to the tune of 261 & 85 crores respectively in the cash market.

On the derivatives side, the FIIs were net sellers in both Index futures and options to the tune of 392 & 277 crores respectively, and the story was same on the Stock futures and options side, where they were net sellers to the tune of 397 and 53 crores respectively. Nifty future settled at 5765, with 26 points premium to the spot, along with a considerable loss of open interest. On the Options side PCR stood at 0.83, along with a fall in the India VIX by 2.0%. On the Call options side, the 6000 call added the maximum open interest, followed by the 5800, 5700 & 5900 calls while there was uniform loss of open interest from the 5000 to 5600 calls. On the Put Options side, the 5400 put added the maximum open interest, followed by the 5500, 5200 & 5700 puts. The entire activity in the cash market was restricted to stock specific level, while on the F&O side there was some level of profit booking in the Index as well as Stock future & options along with addition of longs on the higher side in call options and corresponding put writing at lower levels.

On the technical side, Nifty managed to close above the 5700 mark for the fourth consecutive session denting any prospects of a major downside in spite of major global headwinds, making a valid case to hold on to the long positions. The levels to watch out for Nifty will be 5757 & 5776 on the upside and 5707, 5687 & 5757 on the lower side. On the currency front, the Rupee fell today, snapping two sessions of gains, as euro zone concerns took centrestage with worries over whether Spain would seek a bailout soon. The partially convertible rupee finally closed at 54.36, while the near month USD-INR future settled at 54.55 for the day.

On the international markets front, the Asian markets have closed deep in the red, while the European markets have closed almost flat and the U.S. markets are also trading with losses after a better than expected trade balance data and jobless claims data was negated after a European Union official said a decision on unlocking funds for Greece may not be made until late November. On the Energy futures front, both the Brent and Crude oil futures are trading up by 0.26 & 0.88% at 107.09 & 85.13 $/bbl respectively while the Natural Gas future is trading almost flat at 3.58 $/MMBtu.