Despite of the mid-week recovery, the market settled slightly in negative. NSE Nifty fell 93 points (-1.68%) and ended at 5445.45; BSE Sensex closed at 18174.09, slipping 312.36 points (-1.69%) below the previous week. The Industrial growth figures and the better WPI inflation release failed to outshine the political dynamics in the center, following the expanding range of the CBI probes into the recent (alleged) scams, and the developments on behalf of the upcoming State elections. The most shocking incident for the week that went by was the Tsunami which hit the Japanese shores. This was as the result of the massive earth quake that measured 8.9 in Richter scale. The range of the disaster will possibly have impacts in the global markets in the days to come.
Next week we have inflation data for the month of February and RBI mid quarterly policy review. RBI governor would have tough task on hand – trying to manage inflation and growth at the same time. With the external environment being fragile, it is imperative for India to get its act together in politics and policy reforms. 5400 seems to be immediate support. In case it is broken, traders should exit of leveraged bets. Technically, market is likely to find support at 5400 & 5300 levels and would face resistance at 5550 & 5650 levels.
NIFTY OPTIONS DATA:
- High put option open interest build up of around 9.5 mn and 8.2 mn is seen at 5400 and 5300 strikes respectively, indicating that they will act as strong supports.
- High call option open interest build up of around 6.1 mn and 6.5 mn is seen at 5600 and 5700 strikes respectively, indicating that they will act as strong resistances.
- Nifty is trading at a premium of 14-15 points as compared to a discount of 2-3 points as of the previous trading week.
- The PCR for Nifty based on open interest was up at 1.28 as compared to 1.27 as of the previous trading week.
- The PCR for Nifty based on Volumes was up at 1.13 as compared to 1.09 as of the previous trading week.
- Nifty Futures open interest saw a increase of around 6.71%.
- In Index Futures FII’s were net sellers to the tune of Rs. 1992 Cr with an open interest increase of around Rs. 141 Cr as compared to net buying of Rs. 3527 Cr with an open interest decrease of around Rs. 914 Cr as of the previous trading week.
SECTORAL DATA:
- Long build up was seen in Textiles, Media and Shipping.
- Short build up was seen in Auto, Banking, Metals, IT, Capital Goods, Pharma and Chemicals & Fertilizers.
- Short Covering was seen in Cement, Oil & Gas and Real Estate.
- Long Unwinding was seen in FMCG, Telecom, Power, Finance, Infra and Sugar.
