MTECHTIPS EQUITY MARKET NEWS
MTECHTIPS:-Market Snapshot:&Options Analysis:
Nifty futures snapped the two trading days winning streak and finally closed in red with profit booking seen especially in rate sensitive sectors like Banking, CG and Realty space. Nifty maintained the tight trading range of around 100 points throughout the week. Market witnessed buying interest only in Auto, CD and Metal space whereas selling pressure was seen in Banking, CG, Realty, Power, Oil & Gas, HC and PSU sector stocks. Nifty future closed at premium of 12 points as compare to previous day’s premium of 14 points. If Nifty future sustains above 5280-5300 zone, then only positive move may be seen towards 5350 levels. Whereas on downside if it sustains below 5200-5180 then selling pressure may get intensified towards 5150-5120 levels.On the Options front, maximum Call OI is at 5300 strike followed by 5400 strike whereas maximum Put OI is at 5000 followed by 5100 strike price. PCR based on OI has come near by psychological one levels if breaches this level and sustains below it then further sell off could not be ruled out in the market. The Put Call Ratio based on Open Interest of Nifty moved down from 1.1 to 1.03 levels. HV of Nifty moved down from 18.26 to 18.07 levels and IVs also moved down from 14.88 to 14.64 levels. Nifty future saw marginal increase in OI by 0.38% with a fall in price by 0.77%. The market turnover increased by 6.09% in terms of number of contracts traded vis-à-vis previous trading day whereas in terms of rupees increased by 6.09%.
The Nifty futures gave a flat to negative opening and the index failed to hold on to the levels of 5340 and slipped soon to close in red. The index witnessed choppy session with the markets moving around the 5200 levels for the day and closing with losses. Snapping their two days winning streak, key domestic benchmarks ended the Friday’s trade with over half a percent cut as market participants chose to take some profits off the table amid sluggish global cues.The negative close could also be attributed to the profit taking by traders who witnessed strong gains for the week. The sentiments also remained subdued after Public sector undertaking (PSU) oil marketing companies (OMCs) BPCL, HPCL and IOC edged lower as international crude oil prices surged for the seventh straight session on concern that Middle East tensions will pose potential supply disruptions. While, the shares of sugar companies like Shree Renuka Sugars, Balrampur Chini Mills, Sakthi Sugar and Dhampur Sugar Mills tumbled in the trade, after Cabinet Committee on Economic Affairs (CCEA) approved the hike in the fair and remunerative price (FRP) of sugarcane by 17% to Rs 170 per quintal. On the sectoral front rate sensitive banking space remained the biggest loser on concern that there may not be any further rate cuts by the Reserve bank of India (RBI) in its upcoming monetary policy review. In addition, the power companies came under pressure after slapping of 21% duty on imports of power equipment, expressing their disappointment at the decision, power companies have said that the move would raise equipment prices and raise electricity tariffs.