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MTECHTIPS EQUITY MARKET NEWS

MTECHTIPS:-Market Snapshot & Options Analysis


Nifty futures witnessed gap up opening following the positive global cues and momentum remained continue as market could not able to breach psychological 5400 mark on downside and finally closed near days high levels at around 5450. Nifty for the day, if it sustains above 5450 levels then rally may continue towards 5500 levels. On downside if it fails to hold 5400 then only selling pressure may get intensified towards 5350 levels. Nifty future saw increase in OI by around 3.08% with rise in price by 0.77%. Market witnessed buying interest especially in Metal, Auto, CG, IT, CD, Realty, Tech and FMCG sector stocks whereas selling pressure was seen only Power and HC space. Nifty future closed at premium of 16 points as compared premium of 15 points in previous trading session.On the Options front, maximum Put OI is concentrated at 5300 followed by 5200 strike price suggesting the short term support is shifted to 5300 mark whereas maximum Call OI is at stood at 5600 followed by 5500 strike price. PCR OI has given close above psychological one level, indicating positive to range bound move is likely to continue in the market. The Put Call Ratio based on Open Interest of Nifty moved up from 1.01 to 1.06 levels. HV of Nifty slightly moved down from 14.76 to 14.75 levels and IVs is also moved down from 14.89 14.40 levels. The market turnover increased by 16.02% in terms of number of contracts traded vis--vis previous trading day whereas in terms of rupees increased by 17.62%.

MTECHTIPS:-Technical Snapshot The Nifty gave a positive opening on strong global markets, but the indices dipped on weak IIP numbers which disappointed the trades.But sharp recovery in the final hours, on the back of positive news from the European markets helped the index to close in green.The market exhibited strong traction, but trimmed some of its gains in mid noon trade on the back of disappointing July industrial output data. Indias industrial production barely moved in July, as weakness persisted in the critical areas of the economy such as manufacturing, mining and capital goods amid sticky inflation, high interest rates, fragile currency, global slowdown and policy paralysis.The IIP, inched up by a measly 0.1% in July 2012 as against expectations of a 0.5% growth. Indias industrial output was at 3.7% in July last year. Metal stocks provided the front line indices a much needed support as stocks like Jindal Steel, Tata Steel, Sterlite and Hindalco recovered on short covering and value buying at lower levels after recent losses. Sentiments were also aided by Aviation shares, which advanced on reports that the government is preparing measures to potentially allow foreign investment in the aviation sector. On the losing side, shares of power generation companies remained under pressure after the IIP of electricity sector reported 2.8% growth in July 2012 compared to 13.1% a year earlier.

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