EDGY

The markets opened on an extremely positive note, on the back of positive cues from the international markets and traded with a positive bias till the second half of the trading session, but with just one and half hour left for the end of the day’s trading session the markets started falling almost vertically and ultimately gave up all their gains and both the indices closed in the red. The Nifty and the Sensex closed down by 17 and 54 points respectively. The market breadth also turned negative 556 advances to 962 declines. On the sectoral front the Banking sector was the biggest loser followed by the FMCG and Auto sectors.  On the individual stocks front, DLF, ONGC, NTPC, BPCL & Power Grid were the top five Nifty gainers while Bank of Baroda, Hero Motocorp, IDFC, LT & Tata Steel were the top five Nifty losers for the day. On the institutional side, FIIs were net buyers to the tune of 718 crores and DIIs were net sellers to the tune of 425 crores in the cash markets.

On the derivatives side, FIIs were net buyers in Index futures to the tune of 198 crores and net sellers in Index options to the tune of 136 crores, while they were net sellers in both Stock futures and options to the tune of 2 and 164 crores respectively. Nifty future settled at 5645 with just 11 points premium to the spot along with a marginal decrease in open interest. On the Options side, PCR stood at 0.98, along with a jump in the India VIX by 5.28%. On the Call options side, the 5700 call added the maximum open interest, followed by the 5600 and 5800 calls, while the 5900 call lost the maximum open interest, followed by the 6000 call. On the Put Options side, except the 5500 put there was uniform loss of open interest from the 5000 to 6200 puts. The entire activity in the Call as well as Put options side, suggest hectic rollover activity in the F&O space, just ahead of the expiry on Thursday.

On the technical side, Nifty came within a striking distance to its 250 days EMA, and there seems to be no indication that the slide will stop and it is well on its way to breaking the 5600 levels and make newer lows. The levels to watch out for Nifty will be 5693, 5752 on the upside and 5599, 5564 on the downside. On the Currency front, the Rupee strengthened today, encouraged by the government’s move to ease restrictions on foreign investments in debt markets, but the gains were pared on worries over political uncertainty. The partially convertible Rupee finally closed at 54.17, while the near month USD-INR future settled at 54.58 for the day.

On the international markets front, the Asian markets have closed on an extremely positive note, while the European markets have closed in red and the U.S. markets are also trading with losses as enthusiasm about Cyprus’s bailout faded. On the Energy futures front  the Brent crude oil is trading marginally in the negative, at 107.53 $/bbl, while the WTI crude oil future is trading up by 0.69% at 94.36 $/bbl and the Natural Gas future is trading almost flat at 3.95 $/MMBtu.