You are on page 1of 1

MTECHTIPS EQUITY MARKET NEWS

MTECHTIPS:-Market Snapshot & Options Analysis


Nifty futures witnessed slightly gap up opening following the better global cues and a strong buying seen in the early trades with volumes. Nifty after breaching 5600 psychological area trapped the 5600 call writers and rally was supported by short covering in the respective strike call. The rally remained continue for entire trading session with huge short covering seen in 5600 and 5700 strike calls. Nifty future saw increase in OI by 6.87% with a fall in price by 2.44%. Market witnessed buying interest almost across the board especially in Power, CG, Metal, banking, PSU, Realty, Oil & Gas, Auto and FMCG sector stocks whereas marginal selling pressure was seen only in IT & Tech space. Nifty future closed at premium of 16 points as compared premium of 17 points in previous trading session. Nifty for the day, if it sustains 5700-5720 levels then rally may be seen towards 5770-5800 levels whereas if it fails to hold 5670 levels on downside then only profit booking may be seen towards 5620 levels.On the Options front, maximum Put OI is shifted at 5500 followed by 5600 strike price whereas maximum Call OI is shifted at 5700 followed by 5800 strike price. Fresh unwinding is seen at 5600 & 5700 strike calls along with 5500/5600/5700 aggressive put writing is seen suggesting participants are betting for further upside in coming days. The Put Call Ratio based on Open Interest of Nifty significantly moved up from 1.16 to 1.25 levels. Historical Volatility of Nifty moved up from 17.41 to 20.36 levels and Implied Volatility also moved up from 18.29 to 19.85 levels. The market turnover significantly increased by 90.85% in terms of number of contracts traded vis--vis previous trading day whereas in terms of rupees increased by 93.57%.

MTECHTIPS:-Technical Snapshot
The Nifty opened the session with gains a s the index took cues from the positive Asian counterparts. The index maintained the positive sentiment, and closed the session with gains as the markets closed the day with strong gains. Indices staged a smart bounce back on Friday, a session after being pulverized by around a percent, as the government notified FDI in retail, aviation, broadcasting and power exchanges. Nifty ended near its high of July 8, 2011, which was little below the 5,700 mark-a level which acted nothing short of strong resistance. Similarly, Sensex, too puffing over 2 percent gains ended above the 18,750 psychological level, scaling new highs for 2012.Retail and aviation stocks picked up momentum in early trade after the government braved intense political opposition to notify rules for allowing foreign retailers such as Walmart and Carrefour to set up stores in India on Thursday. Stocks like Pantaloon Retail, Shoppers Stop, Kingfisher, Jet Airways and Spicejet all edged higher in the trade. Some amount of strength came in from metal space as stocks like, Sesa Goa, Sterlite Industries, Tata Steel, Hindalco, NMDC and SAIL edged higher after copper prices rebounded back to 4.5month highs.The broader markets too traded jubilantly through the session and snapped the trade with a gain of over one and half a percent. The markets rose on overall volumes of over Rs 2.65 lakh crore, which remained on the higher side as compared to that on Thursday.

You might also like