After 3 days of one way fall, nifty opened in green on strong note, though the Asian markets were mostly flat or in deep red. And the last nights US markets smart recovery followed by the late sell off’s resulted in 1% loss in those markets did not give nifty a red open. But the crude’s $10 fall intraday highest fall in 17 years gave a very good boost to the Indian markets.

Though nifty opened high, it could not break the pivot level of 3915 consistently and then came the bears well equipped to fight out bulls and nifty from 3920’s all the way to previous close and crack it. After losing 80 points from it’s high, nifty tried to recover from 3840 to 3890 and dull opening in European capital markets, gave way to sellers, taking then nifty all the way to sub 3800 and short covering at last half an hour took the nifty back to 3840 and the final adjustment close at 3816.

On technical analysis, nifty has made a spinning top after a long body. And open above today close and close above 3870, would make an inverted HNS pattern which is bullish and we can expect another rally.

Statistically, Nifty (July) future discount has narrowed to 13.35 points from 32.2 points and around 5.19 lakh shares were shed in open interest. Total open interest in the market was Rs66,473 crore and Rs296 crore were reduced in open interest. Nifty call option added 18.61 lakh shares in open interest, whereas Nifty put option added 2.29 lakh shares in open interest. Market breadth on NSE was negative with adv:decl ratio at 284:892. while 1 stock hit the year high 128 stocks kissed the year low. Most of them are heavy weights and Realty stocks.

Bajaj Hindustan (18%), Unitech (18%), Shree Renuka Sugars (14%), Colgate Palmolive (12%) and IDFC (11%) were the top interest gainers in the futures segment.

Cummins India (-13%), Ranbaxy Laboratories (-13%), LIC Housing Finance (-9%) and Maruti Suzuki India (-8%) were the top open interest losers.

IN cash segment Amtek India, ICICIBANK, Pantaloon retail, Grasim, Axis bank, Thermax saw a block deals of 25 to 68 crore.

Latest headlines from Reuters Data Stream:


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• Ranbaxy says Daiichi deal on track, shares rise

• Tata Metaliks Apr-June net profit up 31.70 pct

• Sterlite plans $1.6 bln syndicated loan - sources

• Birla Cotsyn fixes issue price at 14 rupees/shr

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