CONFIRMATION

The markets opened on a very positive note for the third consecutive session, but after the initial half an hour of trade, the markets briefly entered the negative zone, but form that point onwards the markets traded with a positive bias throughout the trading session and ultimately both the indices closed marginally in the positive zone. The Nifty and the Sensex closed up by 16 & 51 points respectively. The market breadth was positive with 899 advances to 610 declines. On the sectoral front, the Energy sector was the biggest gainer followed by the IT sector, while the FMCG sector was the biggest loser for the day. On the individual stocks front, Dr. Reddy, Cairn, Bharti Airtel, ONGC & DLF were the top five Nifty gainers, while Tata Power, Lupin, PNB, Sun Pharma & Hero MotoCorp were the top five Nifty losers for the day. On the institutional side, the FIIs were net buyers to the tune of a massive 1397 crores, while the DIIs were net sellers to the tune of 910 crores in the cash markets.

On the derivatives side, FIIs were net buyers in both Index futures and Options to the tune of 433 and 334 crores respectively, while they were net buyers in Stock futures to the tune of 57 crores and net sellers in Stock options to the tune of 71 crores. Nifty future settled at 6039 with just 30 points premium to the spot along with a meager decrease in open interest. On the Options side, PCR stood at 1.16, along with a marginal decrease in India VIX by 1.75%. On the Call options side, the 6200 call added the maximum open interest, followed by the 5900 call, while there was uniform loss of open interest from the 5000 to 5800 calls. On the Put options side the 5900 & 6000 puts added the maximum open interest, while there was uniform loss of open interest form the 5000 to 5800 puts. The entire activity in the cash markets was stock specific and it also showed the strong conviction of the FIIs willingness to invest at these levels in the market. On the F&O side, profit booking continued at the lower levels , along with addition of long positions on the higher side of the markets.

On the technical side, Nifty closed above the 6000 mark and made a strong case for a breakout of the trading range. The levels to watch out for Nifty will be 6029, 6035 & 6053 on the upside and 5991 & 5973 on the downside. On the currency front, the Rupee dropped today after two consecutive day’s of gains amidst oil related dollar demand. The partially convertible rupee finally closed at 54.49, while the near month USD-INR future settled at 54.70 for the day.

On the International markets front the Asian markets closed on a fairly positive note, while the European markets have closed on a absolutely flat note, and the U.S stocks which fell initially after a data showed worst than forecast jobless claims, have risen after a rally among retailers offset concerns that the budget deal won’t reduce the deficit fast enough. On the Energy futures front, both the Brent and WTI crude oil futures are trading almost flat at 112.36 & 93.19 $/bbl respectively, while the Natural gas future is trading down by 1.10% at 3.19 $/MMBtu.