2nd August 2011, Closing Market Updates

2nd August 2011, Closing Market Updates 3:40

NIFTY OUTLOOK After making a high of 5551, profit booking was witnessed and Nifty finally closed at 5516.On the hourly chart, oscillators are trading in neutral territory, thus now in intraday, if Nifty starts trading above 5525 then we can see further upside till 5550-5600.However, as mentioned earlier, Nifty continues to form Lower Top and Lower Bottom on its daily chart as well as trading below its 21DEMA and 200DEMA, which still indicates weakness in Nifty.Thus, we still maintain our view that going forward Nifty has support at 5468 levels, which is 50% retracement level of the recent rally from 5195 to 5740. If in coming days, Nifty starts trading below the support of 5468 then we can witness further downside till 5400 which is 61.80% retracement level of the above mentioned rally.However, upside Nifty has resistance in the range of 5580-5600 where 5580 is the 200DEMA.
F&O OUTLOOK Muted action in Options segment on back of range bound session. Overall volumes in the F&O segment was relatively low indicating indecisiveness amongst the market participants. 5600 strike call added ~8.8 lacs shares in OI indicating writing at that strike. Maximum OI concentration is at 5700 strike call (~64 lacs shares) indicating supply zone for the markets. On the put side, 5400 strike holds maximum OI concentration (~66 lacs shares). 5500 strike put witnessed marginal writing and have added ~10.7 lacs shares in OI. We have equal OI concentration at 5500 strike call and put (~50 lacs shares) which indicates that market is likely to consolidate at that level. This is further supported by the fact that market closed near 5500 after opening with a positive gap yesterday. Option chain suggests the range of 5400-5700 for current expiry. August month Options IVs cooled off and were trading at 17-19%. India VIX index closed at 18.8% with a loss of 5%.

In Nifty50 stocks, NTPC was the top gainer by 2.63% and ended at 181.50. JPASSOCIAT was the top loser by 5.01% decline and ended at 60.40.


Major Global Indices : 
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