SHOCKED

The markets opened on a negative note after yesterday’s magnificent gains, and continued to trade rangebound till the start of the second half of the trading session, but post that point the cut started getting deeper and with just one and a half hour left for the end of the day’s session the markets fell almost vertically, but the ferocity of the fall, took everyone by surprise. As across the sector selling gripped the market, there was hardly anything left to do except watching clueless, as to what struck the market suddenly. The Nifty and the Sensex closed down by 75 and 239 points respectively. On the sectoral front, the Banking sector was the biggest loser, followed by the Energy, Auto, Midcap and IT sectors. On the individual stocks front, Sun Pharma, NTPC, Ranbaxy, Tata Power & ITC were the top five Nifty gainers while NMDC, DLF, Bharti Airtel, Tata Motors & Bajaj Auto were the top five Nifty losers for the day. On the institutional side, FIIs were net sellers to the tune of 368 crores, while DIIs were net buyers to the tune of mere 38  crores in the cash market.

On the derivatives side, FIIs were net sellers in Index futures to the tune of 722 crores and net buyers in Index options to the tune of 879 crores, and they were also net buyers in Stock futures to the tune of 501 crores and net sellers in stock futures to the tune of mere 72 crores. Nifty future settled at 5688 with just 15 points premium to the spot along with a considerable addition of open interest. On the Options side PCR stood at 0.94, along with an increase in the India VIX by 5.46%. On the Call options side, there was unwinding of positions from the 5000 to 5500 calls, while on the other hand the 5800 call added the maximum open interest, followed by the 6000, 5900 & 5800 calls. On the Put options side, the 5500 put added the maximum open interest, followed by the 5600 & 5200 puts, while the 5300 put lost the maximum open interest, followed by the 5700 put. The entire activity in the F&O space indicates, unwinding of longs in the call options side along with call writing at the higher levels and fresh short in the Index futures.

On the technical side, Nifty failed to carry the momentum for the next session and 5750 proved to be a crucial resistance and Nifty gave away almost all the gains, built up over the last few sessions. The levels to watch out for Nifty will be 5728, 5750 on the upside and 5633, 5616, 5594 on the downside. On the currency front the Rupee fell today, tracking a decline in domestic stocks on global risk aversion ahead of key global central bank decisions and continued concerns over political stability. The partially convertible Rupee finally closed at 54.43, while the near month USD-INR future settled at 54.74 for the day.

On the international markets front, the Asian markets have closed on a mixed note, while the European markets have closed deep in the red, and the U.S. markets are also trading with losses after worse than expected economic data spurred concern over economic growth. On the Energy futures front, both the Brent and WTI crude oil futures are tarding down by 2.93 & 2.77% at 107.42 & 94.48 $/bbl respectively and the Natural gas future is trading down by 1.40% at 3.91 $/MMBtu.