Nifty Move Towards 7400
Post Market Commentary:
Nifty gave a gap up start in today’s trade and showed some strength in early trade and touched day’s high. However, it drifted downwards in the latter part of the day due to profit booking at higher level. The sentiments were also dampened by Wall Street that saw a negative closing on Friday due to strong US employment data. Finally Nifty closed near days low at 7558.80 levels with loss of 96.25 points.
Market breadth for the Nifty Index remains weak as the advance decline ratio ended on the negative side today. Only seven stocks closed with green mark whereas, and rest of the 43 stocks closed with red mark.
Top 5 Nifty Gainers: Tech Mahindra was top gainer gain with 1.29% followed by HDFC, Yes Bank, Tata Motors and ONGC.
Top 5 Nifty Losers: NMDC was top looser with loss of 4.43% followed by BOSCH, Axis Bank, ICICI Bank and VEDL.
In today’s trading session all sectoral indices closed with red mark and CNX PHARMA sector was top looser lose that lost 2.33%.
The Asian markets were quoting in red mark; Chinas Shanghai Composite declined by 79.75 points, Hong Kong’s Hang-Seng slipped by 257.09 point, while Japan;s Nikkei was up by 61.3 point.
European market bounced back today from sharp declines that we witnessed in previous trading session.
Derivative Analysis
The Nifty September futures open interest has increased by 4.54%. Bank Nifty September futures open interest has increased by 11.32%. Nifty market closed at 7558.80 levels & Bank Nifty marked closed at 15790.10 levels.The Nifty September future closed at a premium of 4.8 point.
The October series closed at a premium of 41.2 points.
The Implied Volatility of ‘at the money’ options has increased by 0.27%.
Nifty PCR-OI has sustained at 1.02 levels.
Interpretation: On the basis of above data, its observed that 7500 may act as strong Support & 8000 may act as strong resistance for Nifty Index. Further moment for the index would be on the positive side.
