ANXIETY

The markets opened on a mildly positive note and continued to trade in a positive territory for greater part of the trading session, but within the last one hour of trade the markets started losing their gains, but the ferocity of fall caught everyone by surprise and ultimately both the indices closed deep in the red, near their lowest point of the day. The Nifty and the Sensex closed down by 48 and 211 points respectively. The market breadth also turned extremely negative, with 416 advances to 905 declines. On the sectoral front, the FMCG sector was the biggest loser, followed by the Energy, Banking, IT & Midcap sectors. On the individual stocks front, Tata Motors, Cairn, TCS, IDFC & Jindal Steel were the top five Nifty gainers, while Reliance Infra, ONGC, Infosys, PNB & State Bank of India were the top five Nifty losers for the day. On the institutional side, FIIs were net sellers to the tune of 664 crores while the DIIs were net buyers to the tune of 988 crores in the cash market. 

On the derivatives side, FIIs were net sellers in Index futures to the tune of mere 15 crores and net buyers in Index options to the tune of 1049 crores, while they were net buyers in Stock futures to the tune of 715 crores and net sellers in Stock options to the tune of 43 crores. Nifty future settled at 5500, with just 5 points premium to the spot, along with a massive increase in open interest. On the Options side, PCR stood at 0.93, along with a marginal increase in the India VIX by 0.30%. On the Call options side, the 5500 call added the maximum open interest, followed by the 5600 & 5400 calls, while there was uniform loss of open interest from the 5700 to 6000 calls. On the Put options side, the 5200 put added the maximum open interest, followed by the 5400 & 5100 puts, while there was uniform loss of open interest from the 5500 to 6000 puts. The entire activity in the F&O space indicates massive shorts formation in the Index futures along with Call writing and fresh longs on the Put options side.

On the technical side, the overall bearish trend in Nifty continues and inspite of being in the oversold territory, the markets are touching new lows, and the fresh shorts are adding to the downward pressure, but it’s only a matter of time before the much awaited technical bounce back will happen and erase some of the losses. The levels to watch out for Nifty will be 5542, 5570 on the upside and 5484, 5453 & 5412 on the downside. On the Currency front the Rupee weakened marginally today, as a sharp selloff in domestic shares, raised concerns about foreign investor outflows at a time when the country is looking to narrow a record current account deficit. The partially convertible Rupee finally closed at 54.58, while the near month USD-INR future settled at 54.75 for the day.

On the international markets front, the Asian and the European markets have closed on a mixed note and the U.S. markets have close on a positive note. On the Energy futures front, both the Brent and WTI crude oil futures have closed almost flat at 106.35 & 93.94 $/bbl respectively, while the Natural Gas future has closed up by 0.55% at 4.04 $/MMBtu.