3rd August, 2011 Closing Market Updates

3rd August, 2011 Closing Market Updates

Nifty Outlook Nifty opened on a negative note and broke the mentioned support of 5468, thereafter also Nifty continued its southbound journey and further made a low of 5433. On the daily chart, Nifty closed below the mentioned support of 5468, as well as it still continued to form Lower Top and Lower Bottom on its daily chart. Besides this, Nifty still continued to trade below its21DEMA and 200DEMA.Thus going forward we still maintain downside target of 5430/5400 which is 61.80% retracement level of the recent rally from 5195 to 5740.However upside Nifty has resistance in the range of 5580 where 5580 is the 200DEMA.  In Nifty50 stocks, SAIL was the top gainer by 3.18% and ended at 121.75. LT was the top loser by 4.23% decline and ended at 1660.65.
F&O Outlook 5500/5600 strike call seen aggressive writing. Together both the strikes added ~25 lacs shares in OI. Maximum OI build up was seen at 5500 strike call. 5700 strike call continues to hold highest OI concentration (~65 lacs shares) indicating supply zone for the markets. Unwinding seen in 5700/5600 strike puts indicating profit booking by long option players at lower level. Marginal writing was seen at 5400 put 5400 strike holds maximum OI concentration (~68 lacs shares) indicating major support for the markets. If this level is taken away then we may see more pain in the markets Option chain suggest the range of 5400-5700 for current expiry August month Options IVs were trading at 17-19%. India VIX index closed at 19.2% with a gain of 2%

Major Global Indices : 
Hang Seng : -428.74
Nikkei : -207.45
FTSE : -61.98
CAC : -22.03
DAX : -69.77
Dow Futures : +48.00
Nasdaq Futures : +10.75