MUMBAI: In an extended choppy trade, Indian markets managed to close in positive terrain Thursday on the back of positive cues from the global markets. National Stock Exchange’s 50-share Nifty closed the day 0.48 per cent higher at 2789.35. However, the F&O turnover dropped 25 per cent from Wednesday.

Nifty was seen volatile in a very narrow range. Intraday, it touched a high of 2802.15 and low of 2767.60, a band of around 35 points. Total spot market turnover on NSE was Rs 4162.85 crore. Top gainers were Wipro (5.33%), Idea (3.67%), Nalco (3.36%) and Siemens (3.35%).

Nifty February futures provisionally settled at a narrow discount of 4 points to spot. February contract price gained 0.82 per cent and open interest added 25.87 lakh shares. Nifty March ended at a higher discount of 11 points indicating rollover of short positions.

Vague positions have been built in Nifty options. Call writing was observed at 2800 strike while call buying was seen at 2850 strike. Unwinding of short calls witnessed at 2900 level whereas unwinding of short calls seen in 3000 and 3100 strike. On the other hand, unwinding of long puts observed from 2800 to 2600 levels. Options data suggests a very lacklustre trade in near term.

“Markets are caught in a range bound move. Lacking any strong trigger, Nifty is likely to trade in 2700-2900 range. Hence, I will advise players to continue with their long straddle or may form straddle at 2800 strike to profit from any abrupt move in markets. Avoid private banking stocks and buy PSU banks, resource stocks oil & gas, power stock NTPC and defensive stocks like FMCG (Hindustan Unilever),” said Rohini Sharma, analyst at Cross Capital Wealth Management.

Rate sensitive sectors were up early in the day on fall in inflation which fueled rate cut hopes. However, some analysts are of the view that the rate cut may not happen soon. India’s inflation rate rose 3.92 per cent in the 12 months to Feb. 7, lower than the previous week’s 4.39 per cent and below a forecast of 4.01 per cent.

In stocks futures, Reliance Industries February slipped 0.04 per cent while open interest added 6.85 lakh shares. State Bank of India skid 0.05 per cent and shed 1.76 lakh shares in OI.

ICICI Bank dropped 2.03 per cent while OI added 32.36 lakh shares indicating huge short build up in the contract. DLF fell 2.48 per cent but it added 25 lakh shares in open interest. L&T February futures slipped 1.42 per cent and shed 5.95 lakh shares in OI.

The F&O turnover on NSE dropped 25 per cent to Rs 30,637 crore from Wednesday’s Rs 41,000 crore.

Meanwhile, stocks rose in Europe and Asia for the first time in eight days, as results from Nestle and BNP Paribas reassured investors and a weaker yen boosted the earnings prospects of Japanese automakers. US index futures also advanced.

source: Economictimes

Tags: calls, daytrading, free calls, intraday, tips

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