SURPRISED

The markets opened on a very flat note and traded almost flat for greater part of the trading session, but with just one and a half hour left for the end of day’s session the markets started rising almost vertically and ultimately both the indices closed at their highest point of the day. The Nifty and the Sensex closed up by 41 and 135 points respectively. On the sectoral front, the FMCG sector was the biggest gainer followed by the IT, Pharma & Banking sectors. On the individual stocks front, ONGC, DLF, ACC, Ranbaxy & BHEL were the top five Nifty gainers while Bharti Airtel, GAIL, Coal India, Hero MotoCorp & Jindal Steel were the top five Nifty losers for the day. On the institutional side, there was hardly any activity with FIIs turning net sellers to the tune of 181 crores while DIIs were net buyers to the tune of 25 crores in the cash market.

On the derivatives side, FIIs were net sellers in Index futures  & Options to the tune of 421 and 146 crores respectively, while they were net buyers in Stock futures to the tune of 413 crores and net sellers in stock options to the tune of mere 10 crores. Nifty future settled at 5953, with 13 points premium to the spot along with a considerable increase in open interest. On the Options side PCR stood at 0.89, with a fall in the India VIX by 2.95%. On the Call options side, the 6000 call lost the maximum open interest, followed by the 5900 & 6100 calls while the 6200 call added the maximum open interest. On the Put options side the 5600 put lost the maximum open interest, followed by the 5500, 6100 & 5700 puts while the 5900 put added the maximum open interest.  The entire activity in the cash markets saw sector specific buying, while in the F&O space there was short covering in the options space due to the sudden rise in the markets.

On the technical side, once again Nifty managed to close above the psychological mark of 5900, raising hopes that we may see some upside but the rise was more due to short covering in the F&O space rather than real buying in the cash markets. Therefore the levels to watch out for Nifty will be 5963 & 5987 on the upside and 5899 & 5867 on the downside. On the currency front the near month USD-INR future settled at 54.23 for the day.

On the international markets front, the Asian markets have closed on a  negative note, while the European markets have closed on a strongly positive note and the U.S. markets are also trading with modest gains. On the Energy futures front,  both the Brent and WTI crude oil futures are trading down by 0.41 & 0.07% at 116.89 & 96.35 $/bbl respectively while the Natural gas future is trading up by 3.79% at 3.27 $/MMBtu.