TREND CHANGE

The markets opened on an extremely positive note, tracking their Asian peers and carrying forward the positive momentum built up over the last three sessions. The markets gained strength with every passing hour and ultimately closed near their highest point of the day. The Nifty and the Sensex closed up by 51 and 153 points respectively. The market breadth was also positive, with 871 advances to 513 declines. On the sectoral front, the Banking sector was the biggest gainer, followed by the Midcap, FMCG & Infra sectors, while the IT sector was the biggest loser for the day. On the individual stocks front, Reliance Infra, Coal India, Larsen Toubro, HDFC Bank & IndusInd Bank were the top five Nifty gainers, while Ultratech Cement, Infosys, HCL Tech, TCS & ONGC were the top five Nifty losers for the day. On the institutional side, FIIs were net buyers to the tune of 916 crores and DIIs were net sellers to the tune of 443 crores in the cash market.

On the derivatives side, FIIs were net buyers in both Index futures and Options to the tune 1218 and 422 crores respectively, while they were net sellers in Stock futures to the tune of 454 crores and net buyers in Stock options to the tune of 87 cores. Nifty future settled at 5833, with 1 point discount to the spot along with a massive loss of open interest. On the Options side, PCR stood at 1.26, along with a increase in the India VIX by 5.59%. On the Call options side, there was uniform loss of open interest from the 5000 to 5800 call, while the 5900 call added the maximum open interest, followed by the 6000 call. On the Put options side, there was uniform loss of open interest from the 5000 to 5700 puts, while the 5800 put added the maximum open interest, followed by the 5900 & 6000 puts. The entire activity in the F&O space, indicates rollover activity, just ahead of the future’s expiry this week.

On the technical side, Nifty has managed a dramatic pullback, over the last four consecutive sessions and has managed to erase almost the entire losses, it had sustained over the last two weeks. There seems to be no stopping as it has managed to breach the almost three months old downtrend channel. The levels to watch out for Nifty, will be 5855, 5877, 5910 on the upside and 5786, 5761 on the downside. On the currency front the Rupee, fell today, as Gold and Oil importers brought dollars to meet payment obligations. The partially convertible Rupee finally closed at 54.14, while the near month USD-INR future settled at 54.11 for the day.

On the International markets front, the Asian markets have closed on a strongly positive note, and the European markets have closed on a mixed note and the U.S. stock markets are fluctuating between gains and losses as the investors weigh corporate earnings amid a drop in sales of existing U.S. homes. On the Energy futures front, both the Brent and WTI crude oil futures are trading up by 0.39 & 0.58% at 100.03 & 88.77 $/bbl respectively, while the Natural Gas future is trading down by 2.76% at 4.31 $/MMBtu.