On Tuesday, it was a flat closing for the Indian markets, which traded dull but steady for most part of the day. The markets ended marginally lower after recovering from the day's lows. The markets remained sideways throughout the day. The broader market outperformed the frontline stocks and buying was seen in financial stocks while metals, IT and realty stocks looked weak.
The Sensex started the day on a flat note at 18049, mere a point lower. The Index soon turned positive hitting the day’s high of 18140 in its initial trades. The Sensex gradually started to pare its gains and slipped in to negative zone to hit the day’s low of 18026 in the late morning trades. However, from that level, the Sensex once again started to move northwards as the European markets opened on a positive note. In the late trades, the index slipped again to end the session marginally lower.
At the closing bell, the Sensex closed at 18049, mere two points lower. The Nifty shut mere four points down, at 5414.
BOND MARKET: India’s 10-year bonds declined for a second day after the government said yesterday that it plans to raise as much as Rs120 billion ($2.6 billion) selling fixed-income securities on August 20, 2010. India’s rupee gained the most in more than two weeks after overseas investors raised holdings of the nation’s assets to record levels to benefit from an improving economy.
MARKET SENTIMENT: The market breadth was negative as declining stocks outdid the advancing ones. Of the 3,086 scrips traded on the BSE, 1,513 scrips fell whereas 1,449 scrips gained. Hundred and twenty-four shares traded unchanged.
DERIVATIVE SEGMENT: The daily chart of Nifty is showing that it has been trading in the range of 5350 and 5500 for past few days. So the short term support and resistance are 5350 and 5500 respectively. If Nifty breaks 5500 an upward rally might take it to 5600. However, a breach of 5350 would be treated as the failure of current trend and in that Nifty may further go down to 5260.
Nifty Call options of strike 5500 added open interest by 14476 lots while Put options of strike 5300 had a build up of 18903 lots. Nifty Put Call ratio stands at 1.45 with the total open interest in Call options at 1,391,112 lots and that in Put options at 2,011,658 lots. Volatility Index fell by 2.65% from 18.11 to 17.63
MAJOR NEWS: Mahindra Satyam soars on winning case against Upaid; the stock closes 2.34% higher. Cox and Kings raises $65 million via global depository receipt; the stock ends 3.56% lower.
FOR TODAY: Technically, the Nifty is likely to find support at 5400 and at 5385 while the near-term resistance zone is around 5480 and 5500. The Nifty has been struggling to cross 5500 but will need a big help from global market if it is to breach that milestone in this month. If it does manage to cross 5500 we could see some short covering that may take the index up to 5600. However, it will find it tough to maintain the tempo as the global situation remains precarious.
On an intra-day basis Nifty has a support at 5400 and is likely to face a resistance near 5440. If it breaks 5400, intraday trend will be negative and it may go down further to 5380 and then 5350. However, if Nifty is able to sustain above 5440, it may test the level of 5470 and then 5495.
BUY NIFTY FUTURE AROUND 5411 WITH STOPLOSS OF 5399 FOR A TARGET OF 5441; OR SELL NIFTY FUTURE BELOW 5381 WITH STOPLOSS OF 5401 FOR A TARGET OF 5364.
Other calls will be given in Comments Section during trading time.
DISCLAIMER: I have no position.
