MTECHTIPS:-Market Snapshot:&Options Analysis:

Nifty futures opened gap up on Monday following the positive global cues and witnessed further upside intraday, and managed to close the session with very strong gains. Nifty may continue to trade between 5100-5200 zones and any breakout on either side may give further directional move of around 100-150 points. Nifty if sustains below 5200 psychological levels selling pressure may be seen at higher levels whereas crossing these levels may lead to short covering rally towards 5280-5300 levels. Whereas on the downside, breaching 5160 levels may give selling pressure towards major support area of 5120 psychological levels. Nifty future saw increase in OI by 9% with a rise in price by 0.83%. Market witnessed buying interest especially in Banking, Metal, FMCG, IT, Tech and Auto space.On the Options front, maximum Call OI is at 5500 strike followed by 5400 strike whereas maximum Put OI is at 5000 followed by 5100 strike price. The Put Call Ratio based on Open Interest of Nifty slightly moved up from 1.01 to 1.02 levels. HV of Nifty moved up from 19.1 to 19.94 levels but IVs slightly moved down from 16.38 to 16.05 levels. The market turnover decreased by 49.4% in terms of number of contracts traded vis--vis previous trading day whereas in terms of rupees increased by 49.16%.

MTECHTIPS:-Technical Snapshot:
The Nifty futures gave a gap up opening, and the index managed to trade in positive for the session, the nifty closed the session with very strong gains. The frontline indices gathered strength from strong global cues and commenced the northbound journey throughout the session with great conviction ahead of the Reserve Bank of Indias policy meet on July 31. Hyperactive bulls aggressively piled up positions not only in heavyweight stocks but in the broader markets too. Banking space witnessed a jubilant run today on the back of better than expected Q1 numbers registered by some banking majors.Investors also piled up positions in the rate sensitives like auto and realty stocks on hopes that Reserve Bank of Indias (RBI) governor Duvvuri Subbarao will spring a pleasant surprise in the form of a rate cut. Meanwhile, data showing resumption of buying of Indian stocks by foreign institutional investors (FIIs) also underpinned sentiment. FIIs bought shares worth a net Rs 563.72 crore on July 27, 2012. FIIs had pressed sales recently after making sustained buying of Indian stocks. power sector remained the top gainer on the BSE sectoral space, garnering over three and a half percent on the back of partial power restoration from northern grid. Meanwhile, the Centre for Monitoring Indian Economy (CMIE) has projected a rise in steel price by 7.2% this year due to constrained availability of raw materials and subdued demand, as the construction gathers pace after monsoon season.