ECSTATIC

The markets started opened on a quite note after yesterday’s muted close, but things started changing dramatically as the markets gained strength with every passing hour and ultimately both the indices broke their January highs and finally closed near the highest point of the day. The Nifty and Sensex closed up by 151 and 491 points respectively. The market breadth was also positive with 909 advances to 461declines. On the sectoral front, the Banking sector was the biggest gainer, followed by the FMCG, Midcap, Energy and Pharma sectors. On the individual stocks front, Punjab National Bank, Kotak Bank, DLF, Indus Ind Bank & Reliance Infra were the top five Nifty gainers, while Powergrid, Cairn & Ultratech Cement were the top Nifty losers for the day. On the institutional side, FIIs were net buyers to the tune of a massive 1647 crores, while DIIs were net sellers to the tune of 747 crores in the cash market.

On the derivatives side, FIIs were net buyers in both Index futures and Options, to the tune of 246 and 343 crores respectively, while they were net sellers in both Stock futures and Options to the tune of 383 and 16 crores respectively. Nifty future settled at 6161, with 14 points premium to the spot, along with a sizeable increase in open interest. On the Options side, PCR stood at 0.93, along with an increase in India VIX by 5.59%. On the Call options side, except the 6100 call, there was uniform loss of open interest from the 5100 to 6200 calls. On the Put options side, the 6100 put added the maximum open interest, followed by the 6200 & 6000 puts, while there was uniform loss of open interest from the 5000 to 5800 puts. The entire activity in the F&O space indicates further addition of long positions along with profit booking on the Call options side and some Put writing on the Put Options side.

On the technical side Nifty made a remarkable pullback after the massive slide two day’s ago, and broke its January highs, with ease, indicating a strong upside momentum, which may continue for few more sessions. The levels to watch out for Nifty will be 6196 & 6245 on the upside and 6058, 6010 on the downside.On the currency front, the Rupee ended marginally higher today, as sharp gains in domestic shares, offset the dollars rise versus most major currencies, particularly the euro. The partially convertible Rupee finally closed at 54.78, while the near month USD-INR future settled at 54.93 for the day.

On the international markets side, the Asian markets have closed on a mixed note, while the European markets have closed on a positive note and the U.S. markets have risen, amid speculation on central bank stimulus measures as reports showed manufacturing shrank in the world’s largest economy. On the Energy futures front, the Brent crude oil future is trading up by 0.31% at 102.83 $/bbl, while the WTI crude oil future is trading down by 0.23% at 93.99 $/bbl and the Natural gas future is trading up by 0.97% at 4.06 $/MMBtu