WORSE

The markets opened on a very negative note and as the session progressed the market breadth worsened and with just one and a half hour left for the end of the session the markets touched their day’s low but dramatically from this point onwards the markets made an almost V shaped recovery and recovered their entire losses for the day before falling once again to close almost flat till the end of the session. The Nifty and the Sensex closed down by 9 and 29 points respectively for the day. The market breadth was also extremely negative with 595 advances to 915 declines. On the sectoral front, there was hardly any activity with most of the sectors closing almost flat or in the negative. On the individual stocks front, Tata Motors, IDFC, Tata Power, Bharti Airtel & Gail were the top five Nifty gainers, while Dr. Reddy, Cairn, DLF, BPCL & Bajaj Auto were the top five Nifty losers for the day. On the institutional side, FIIs were net buyers to the tune of 247 crores while DIIs were net sellers to the tune of 246 crores in the cash market.

On the derivatives side, FIIs were net sellers in Index futures to the tune of 743 crores and net buyers in Index options to the tune of 719 crores on the other hand they were net buyers in Stock futures and Options to the tune of 125 and 113 crores respectively. Nifty future settled at 5892 with just 5 points premium to the spot along with a considerable increase in open interest. On the Options side PCR stood at 0.83, along with a marginal increase in India VIX by 0.99%.  On the Call options side, the 6000 call added the maximum open interest followed by the 5900 & 6100 calls, while on the Put options side, the 5400 put added the maximum open interest, followed by the 5500 & 5300 puts, while 5900 put lost the maximum open interest, followed by the 6000 & 5700 puts. The entire activity in the cash markets was stock specific while in the F&O space the market participants continued to add to their short positions in both Index futures and options.

On the technical side, Nifty has clearly broken the 5900 level for the second consecutive session and with the levels of shorts increasing in the system, we may see more downside in the day’s to come. The levels to watch out for Nifty will be 5906 and 5925 on the upside and 5860 and 5835 on the downside. On the currency front, the Rupee fell to its lowest level of the month on Friday, hurt by weaker local shares and slump in the euro following weak economic growth data. The Rupee finally closed at 54.22 while the near month USD-INR future settled at 54.33 for the week.

On the international markets front, the Asian markets closed on a mixed note, while the European and U.S. markets closed on a very flat note for the week. On the energy futures side, both Brent & WTI crude oil futures have closed down by 0.29 & 1.49% at 117.66 & 95.86 $/bbl respectively, while the Natural gas future has closed down by 0.32% at 3.15 $/MMBtu.