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The markets opened on a flat note and continued to trade rangebound for the initial two hours of trading session, but post that point the markets started gaining strength and continued to touch new highs with every passing hour and ultimately both the benchmark indices managed to close near their day’s high. The Nifty and the Sensex closed up by 86 and 165 points respectively.  The market breadth was also positive with 999 advances to 504 declines. On the sectoral front, the Banking sector was the biggest gainer followed by the Midcap, FMCG, Energy & IT sectors. On the Individual stocks front, Sesa Goa , Hindalco, HCL Tech, Ambuja cement & Tata Motors were the top five Nifty gainers, while Baja Auto, Bhel, HDFC & Sun Pharma were the top four Nifty losers for the day. On the Institutional side, FIIs were net buyers to the tune of 221 crores, while DIIs were net sellers to the tune of 244 crores in the  cash market.

On the derivatives side, FIIs were net buyers in both Index Futures and Options to the tune of 175 and 809 crores respectively and they were also net buyers in Stock futures and Options to the tune of 655 and 55 crores respectively. Nifty future settled at 5803, with 19 points premium to the spot, along with a marginal decrease in open interest. On the Options side, PCR stood at 0.96, along with a 2.05% decrease in India VIX. On the Call options side, the 5700 call lost the maximum open interest followed by the 5600 & 5500 calls, while the 6100 call added the maximum open interest, followed by the 6000 & 5900 calls. On the Put options side, the 5700 put added the maximum open interest, followed by the 5800, 5600 & 5500 puts, while the 5300 put lost the maximum open interest, followed by the 6000 & 5900 puts. The entire activity in the cash market saw across the sector buying, while in the F&O space it was a mix of short covering and addition of more shorts at the higher levels of the market. 

On the technical side, once again Nifty managed to close above the crucial mark of 5700, aided mainly by short covering due to positive sentiments in the global markets. The levels to watch out for Nifty will be 5808, 5833 on the upside and 5740, 5697 on the downside. On the currency front the Rupee ended lower today, driven by a late fall in Euro, with concerns over the country’s current account deficit expected to remain a major drag for the currency. The partially convertible Rupee finally closed at 54.92 while the near month USD-INR future settled at 55.15 for the day.

On the international markets front, the Asian and European markets have closed on an extremely positive note and the U.S markets are also trading on a strong note. On the Energy futures front, both the Brent and WTI crude oil futures are trading almost flat with a positive bias at 110.61 & 90.19 $/bbl respectively while the Natural Gas future is trading up by 0.85% at 3.55 $/MMBtu.