Market Snapshot
Despite yesterday's fall and overnight weakness in the US markets the indices managed to open in green. However the indices could not sustain with selling in banking stocks and slipped to a low of 12,833. Some short-covering towards the end saw the index rally to a high of 13,004. The Sensex finally settled with a gain of 95 points at 12,980. Nifty finally settled with a gain of 30 points to close at 3798.
The NSE cash volumes were higher compared to the previous day at INR 100 bn but BSE was lower at INR 36 bn. The F&O volumes were a higher at INR 513 bn.
Sentiment Indicators
The Implied Volatility (IV) across Nifty strikes has increased to 28% levels. The WPCR of Nifty Options decreased to 0.88 compared to the previous day while the 5 day average is 1.03.
Outlook
The markets are expected to have a tepid opening on account of VWAP adjustment of the expiry of the March series. Currently there are no major positive triggers in the market and we expect the Nifty to be rangebound before the weekend. IT sector can see some action taking cues from the INR USD movement.
Rollovers picked up momentum lately on the expiration day to 83% of the total D-5 positions in the Nifty and 82% in the broader market .
Pharma stocks can have good buying opportunities with stocks like Ranbaxy and AurobindoPharma as our top buy picks. With crude oil inching up again above levels of $66, OMC counters can see some selling pressure.
Technical charts indicate that the bearish tone in the market will continue. Any pullback will not be sustained beyond the opening session. The immediate supportfor the Nifty is at 3789 followed by 3757. On the upper side the next important resistance is 3808 and 3820.
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