ANXIOUS

The markets were closed today, on account of May day holiday, but the markets opened on an extremely positive note on Tuesday, and after trading on a strong note for the initial two hours, it was a rollercoaster ride for the rest of the session, the markets fell almost vertically and touched their intraday lows within the next two hours and then dramatically recovered from that point onwards, to close near their highest point of the day, till the end of the session. The Nifty and the Sensex closed up by 26 & 117 points respectively. The market breadth however closed on a negative note with 628 advances to 716 declines. On the sectoral front, the Banking sector was the biggest loser, while the FMCG sector was the biggest gainer for the day. On the individual stocks front, Hind Unilever, HCL Tech, M&M, Lupin & Sesa Goa were the top five Nifty gainers, while IDFC, JP Associates, PNB, IndusInd Bank & HDFC were the top five Nifty losers for the day. On the institutional side, FIIs were net buyers to the tune of 877 crores and DIIs were net sellers to the tune of 347 crores in the cash market.

On the derivatives side, FIIs were net sellers in Index futures to the tune of mere 27 crores and net buyers in Index options to the tune of 1076 crores, while they were net sellers in both Stock futures and Options to the tune of 198 and 83 crores respectively. Nifty future settled at 5929, with 1 point discount to the spot, along with a marginal increase in open interest. On the Options side, PCR stood at 1.35, along with an increase in the India VIX by 5.37%. On the Call options side, the 6200 call added the maximum open interest, followed by the 6100, 6000 & 5900 calls, while the 5700 call lost the maximum open interest. On the Put options side, the 5800 put added the maximum open interest, followed by the 5700, 5600 & 5500 puts, while the 5900 put lost the maximum open interest. The entire activity in the F&O space indicates further addition of long positions on the call options side along with hedging on the Put options side.

On the technical side, Nifty continues to trade in the breakout zone for the fifth consecutive session, and the technical indicators suggest there is a strong upward momentum, and if there everything goes well, i.e. - a positive stance in RBI’s policy, uptick in the IIP nos. the markets are about to scale new highs very soon. The levels to watch out for Nifty will be 5972, 6014 on the upside and 5877, 5824 on the downside. On the currency front the Rupee rose to highest level in two weeks on Tuesday, after a cut in tax on interest payment on debt, to foreigners, raised hopes of more dollar inflows. The partially convertible Rupee finally closed at 53.80, while the near month USD-INR future settled at 53.94 for the day.

On the international markets front, the Asian and the European markets have closed on a mixed note today and the U.S. markets are trading with losses on the back of data, which showed slower growth in payrolls and manufacturing. On the energy futures front, both the Brent and WTI crude oil futures are trading down by 2.53 & 2.78% at 99.81 & 90.89 $/bbl respectively, after the data showed an unexpected rise in U.S. weekly crude oil inventories, while the Natural gas future is trading up by 0.83% at 4.378 $/MMBtu, after a data showed more than expected fall in U.S. weekly Natural Gas inventories.