MTECHTIPS

MTECHTIPS EQUITY MARKET NEWS

MTECHTIPS:-Market Snapshot

Nifty futures witnessed gap down opening following the weak global cues and could not able to sustain at higher levels around 5700 levels as there was huge supply at every rise at those levels. Nifty for the day, if it sustains 5700 levels then only rally may be seen towards 5750 levels whereas if it fails to hold 5650 levels on downside then selling pressure may be seen towards 5600 levels. Nifty future saw decrease in OI by 2.36% with a fall in price by 0.9%. Market witnessed buying interest only in FMCG space whereas selling pressure was seen almost across the board especially in Realty, Power, Banking, PSU, Tech, CG, Metal, IT and HC sector stocks. Nifty future closed at premium of 20 points as compared premium of 19 points in previous trading session.

MTECHTIPS:-Options Analysis

On the Options  front, maximum Put OI is at 5500 followed by 5600 strike price whereas maximum Call OI is at 5900 followed by 5800 strike price. PCR OI has gone down below psychological one level indicating call writers are more aggressive as compared to put writers.The Put Call Ratio based on Open Interest of Nifty slightly moved down from 1.03 to 0.99 levels. Historical Volatility of Nifty moved down from 17.53 to 17.51 levels and Implied Volatility also moved down from 16.10 to 16.02 levels. The market turnover increased by 5.07% in terms of number of contracts traded vis-à-vis previous trading day whereas in terms of rupees increased by 4.3%.

MTECHTIPS:-Technical Snapshot

The Nifty gave a weak opening tracking weak global markets, and the indices dipped intraday and failed to witness any positive up move. Investors offloaded their positions after global ratings agency Standard & Poor’s (S&P) warned of a significant chance of downgrading India’s debt rating in the future. The rating agency underscored that downgrade was likely if growth prospects dimmed, external position deteriorated; political climate worsened or pace of fiscal reforms slowed. It also said that it sees India’s FY13 fiscal deficit at 6% of GDP as against the government’s projection of 5.1%.Major blow came in from the realty space, which tumbled over four and half a percent after Arvind Kejriwal released more evidence of links between DLF, Haryana government and Robert Vadra. The social activist-turned-politician has also named two other realty players India bulls and BPTP for having close links with politicians. Telecom stocks like Idea Cellular, Bharti Airtel, Reliance Communication and MTNL extended yesterday’s losses triggered by the Empowered Group of Ministers’ decision on October 8, to impose a one-time fee on existing telecom operators. The sentiments also remain dampened after Auto industry body SIAM slashed the FY13 car sales growth forecast from its previous estimate of 9-11 percent growth, citing high interest rates and slowing economic growth. SIAM also cut its motorcycle sales growth for FY13 to 5-7% from 11-13% earlier, and commercial vehicles sales growth to 3-5%, from 6-8% earlier.