Research Reports

Markets could open flat

Markets ended with nominal gains on Wednesday. It was the fourth consecutive positive daily closing for the Nifty. There was a build up of longs as Nifty Fut OI increased by 3,181 contracts and the premium on Nifty Aug Fut expanded to 15.8pts. FIIs were however building shorts as they were net sellers to the tune of 59crs. in the index fut segment and their OI rose.

Nifty IV increased to 15.83% while Nifty OI PCR jumped to 1.29. In the index option segment, maximum OI is being seen in the 5500 calls and 5000 puts indicating that this broadly remains the expected trading range. Unwinding was seen in the 5100-5200 call strikes as the markets rose yesterday.

In the stock fut segment, there was a build up of longs in Century Textiles, REC Ltd, OnMobile and MTNL. Shorts were built in Coal India, Voltas, Jain Irrigation and NHPC. Technically, with the Nifty moving up further and closing with gains for the fourth consecutive session, the bulls remain in control. Traders will need to see if the Nifty can now cross the previous short term highs of 5258. A close above these levels would reverse the current downtrend and lead to a fresh uptrend. Weakness could emerge if the immediate supports of 5206 are broken.