Mtechtips

MTECHTIPS:-Market Snapshot & Options Analysis

Nifty futures on Tuesday finally breached the short term trading range of 5320-5380 levels and finally closed above psychological 5400 levels on the back of positive cues from lower inflation data. However Nifty traded on a cautious note for the first half of trading session and then rally was mainly supported by strength in the frontline stocks in the later half. Nifty for the day if sustains above 5400 zone then further positive move may be seen towards 5450-5480 levels. Whereas on downside if it fails to hold 5370 levels then only selling pressure may get intensified in the market towards 5320 levels. Nifty future saw increase in OI by 3.02% with a rise in price by 0.65%. Market witnessed buying interest in Oil & Gas, Banking, Metal, PSU, Auto, CD and IT sector stocks whereas selling pressure was seen only in Realty and HC stocks.On the Options front, maximum Call OI is at 5500 strike followed by 5400 strike whereas maximum Put OI is at 5000 followed by 5300 strike price. Heavy put writing is seen at 5300 strike price suggesting immediate support to the market. The Put Call Ratio based on Open Interest of Nifty slightly moved up from 1.20 to 1.21 levels. HV of Nifty moved down from 16.85 to 16.62 levels and IVs also moved down from 15.26 to 14.64 levels. The market turnover increased by 30.55% in terms of number of contracts traded vis-à-vis previous trading day whereas in terms of rupees increased by 30.41%.

MTECHTIPS:-Technical Snapshot

The Nifty futures gained on Tuesday as the index gained momentum in the final session to close the day with strong gains above the 5400 levels in futures market. Markets staged a smart performance on Tuesday as the frontline indices settled above important psychological levels and extended the gaining streak for the second straight session. Though, the bourses, in the first half, traded cautiously near their pre-close level awaiting July inflation figure. But, the encouraging WPI inflation numbers for July provided the much needed support to the local markets and prevented downside chances for the bourses. The wholesale price index (WPI), India’s main inflation gauge, unexpectedly slipped at 6.87% for the month of July, its lowest since January 2010, as compared to 7.25% (Provisional) for the previous month and 9.36% during the corresponding month of the previous year.Tata Motors up by 2.85%, Tata Steel up by 2.63%, Jindal Steel up by 2.47%, ICICI Bank up by 2.05% and ONGC up by 1.82% were top gainers on the Sensex, while Sun Pharma down by 2.10%, HDFC down by 1.78%, Sterlite Industries down by 1.27%, Bajaj Auto down by 0.97% and Hindalco Industries down by 0.91% were top losers on the index.