BREAKOUT ??

The markets opened with a gap up on the back of positive news from the U.S. senate, and maintained their positive momentum throughout the trading session and ultimately both the indices closed near their day’s high. The market breadth was extremely positive with 1102 advances to 409 declines. On the sectoral front, the Banking sector was the biggest gainer followed by the FMCG & Auto sectors. On the individual stocks front, Rel Infra, Jindal Steel, Hindalco, PNB & Tata Steel were the top five Nifty gainers while Power Grid, NTPC, Infosys, Asian Paint & Hero Motocorp were the top five Nifty losers for the day. On the institutional side, FIIs were net buyers to the tune of 665 crores and DIIs were net sellers to the 406 crores in the cash market.

On the derivatives side, FIIs were net sellers in Index futures to the tune of 144 crores and net buyers in Index options to the tune of 975 crores while they were net sellers in both Stock futures and options to the tune of 219 & 48 crores respectively. Nifty future settled at 6007 with 56 points premium to the spot along with a marginal increase in open interest. On the Options side, PCR stood at 1.08, along with a fall in the India VIX by 8.43%. On the Call options side, the 6200 call added the maximum open interest followed by the 6000 call, while there was marginal decrease in open interest from the 5000 to 5900 calls. On the Put options side, the 5600 put added the maximum open interest, followed by the 6000, 5900 & 5700 puts. The activity in the Cash markets was sector specific today, while in the F&O side there was some profit booking on the call option side along with addition of long position on the Call options side and corresponding put writing at higher levels in the market.

On the technical side, Nifty finally made an attempt to break out of the narrow trading range and closed above the immediate resistance of 5942, but the sustainability above this level will depend on the news flow from the domestic as well as the international front. The levels to watch out for Nifty will be, 5964, 5978 & 5993 on the upside and 5906, 5893 on the downside. On the currency front, the Rupee started 2013 on a positive note tracking gains in local shares after U.S. lawmakers agreed on a deal which would help avert the “fiscal cliff” but weak domestic data limited a sharper rise. The partially convertible rupee finally closed at 54.68, while the near month USD-INR future settled at 55.04 for the day.

On the international markets front, it was a holiday for the Asian, European and U.S. markets hence there is no data to update on the equities as well as the commodities markets.