OVERSOLD

The markets opened on a very quite note and traded in an extremely narrow range throughout the entire trading session. It was complete lackluster session and ultimately both the indices closed in the red. The Nifty and the Sensex closed down by 10 & 12 points respectively. The market breadth was however negative with 547 advances to 735 declines. On the sectoral front, the Banking sector was the biggest loser, followed by the IT sector, while the Energy sector was the biggest gainer for the day. On the individual stocks front, Bharti Airtel, Rel Infra, BHEL, Ambuja Cement & Cipla were the top five Nifty gainers, while Asian Paint, Sesa Goa, Ranbaxy, Axis Bank & PNB were the top five Nifty losers for the day. On the institutional side, FIIs were net sellers to the tune of 164 crores, while DIIs were net buyers to the tune of 212 crores in the cash market.

On the derivatives side, FIIs were net sellers in Index futures, to the tune of 325 crores and net buyers in Index options, to the tune of 192 crores, while they were net buyers in both Stock futures and options to the tune of 82 and 36 crores respectively. Nifty future settled at 5559 with 16 points premium to the spot, along with a considerable increase in open interest. On the Options side PCR stood at 0.91, along with a increase in the India VIX by 3.77%. On the Call options side, the 5800 call added the maximum open interest, followed by the 5700 & 5600 calls. On the Put options side, the 5600 put lost the maximum open interest, followed by the 5800 & 5700 puts, while the 5500 put added the maximum open interest, followed by the 5400 put. The entire activity in the F&O space indicates fresh shorts in the Index futures along with Option writing on the Call options side.

On the technical side, Nifty closed below its crucial support for the third consecutive session, but the technical indicators on the daily and weekly charts indicate a oversold situation and hence a short technical pullback from these levels cannot be ruled out. The levels to watch out for Nifty will be 5562, 5584 on the upside and 5530, 5517 & 5495 on the downside. On the currency front, the Rupee posted its biggest gain, against the dollar in more than three weeks on the back of dollar sales by a large corporate and custodian banks. The partially convertible Rupee finally closed at 54.56, while the near month USD-INR future settled at 54.76 for the day.

On the international markets front, the Asian markets have closed on a relatively stronger note, while the European markets have also closed on a positive note and the U.S. markets are little changed as investors await the earnings season. On the Energy futures front, the Brent crude oil future is trading down by 0.35% at 103.75 $/bbl, while the WTI crude oil future is trading up by 0.20% at 92.89 $/bbl and the Natural gas future is trading down by 0.35% at 4.10 $/MMBtu.