FIIs were net buyers with the tune of ` 73.03 crore on Friday, the 15h July 2011(prov. fig.)
The BSE Sensex was down 56.28 points or 0.3% to settle at 18,561.92, its lowest closing level since 12 July 2011. The Sensex jumped 1,001.45 points at the day's high of 19,619.65 in early trade. The index shed 104.98 points at the day's low of 18,513.22 in morning trade. The S&P CNX Nifty was down 18.70 points or 0.33% to 5,581.10, its lowest closing level since 12 July 2011. The Nifty hit a high of 5,631.70 and a low of 5,562.75 in intraday trade. The BSE Mid-Cap index fell 0.11%. The BSE Small-Cap index rose 0.08%. Both these indices underperformed the Sensex.
The market breadth was negative. On BSE, 1,386 shares advanced and 1,481 shares declined and a total of 127 shares remained unchanged. The breadth was positive earlier in the day. Among the 30-member Sensex pack, 22 stocks fell while the rest of them rose.
OI DATA & PCR: The Call base at 5600 and 5700 strikes has seen significant fresh additions and despite sudden pull back, the lack of closure in these strikes suggest pressure to remain in the index at higher levels. At the same time, more than 1 crore shares at ATM 5500 Put strike indicate strong support at downside. Rise in volatility also attracted option writers in these strikes during last few trades. Nifty may exhibit range-bound movement between 5500-5650 in near term and a breach of the range will trigger directional movement. (RANGE-BOUND)
NIFTY OI PCR slipped to 1.18 from 1.25 levels, over the week. This drop in NIFTY OI PCR is mainly due to significant addition in 'CALLs' OI (around 5500, 5600 and 5700 strikes). Over the week, NIFTY CALLs OI witnessed a significant addition of 21.8% to reach 4.30 crore shares, whereas NIFTY PUTs added just 10.16% in OI to 4.83 crore shares. (NEGATIVE)
The Implied Volatility (IV) for Nifty futures last week has increased to 18.05% from 15.47%. The IV of the stock futures has changed this week ranging from -13.11% to 5.83%. (VOLATILE MARKET)
The open interest for the index at the end of this week has decreased by 3.40% as compared to the previous week. All future stocks saw changes in their open interest ranging from -13.44% to 29.32%. SAIL has the maximum increase in open interest as compared to other stocks.
My view for Monday is same as of Friday:
WATCH 5540 ON THE DOWN SIDE WHERE ONE CAN BUY WITH STRICT STOPLOSS OF 5531/5524 AS PER THEIR RISK TAKING APPETITE AND FOR POSITIONAL TRADER, STOPLOSS MAY BE BELOW 5480. ON THE UPSIDE, IDEAL LEVEL FOR SHORTING IS 5659/5667 WITH STOPLOSS OF 5689 FOR DAY TRADING AND 5740 FOR POSITIONAL TRADER.
