Daily Call - March 18 2010

US markets continued their northward journey by putting on nearly half a percent in yesterday’s trade. Dow gained for the seventh consecutive day and closed at the highest level since 1st October 2008. European markets too gained and hit a 17 month closing high.

After yesterday’s gain, Nifty is now just 1.5% away from 5310, the high made in January. While the volumes were encouraging, broader market participation, which picked up after many sessions on Tuesday, faltered again in yesterday’s trade. FIIs bought index futures worth 874 cr. and Index options worth Rs. 799 cr. while provisional buying in cash segment stood at Rs. 815 cr. Put-call ratio rose to 1.61 from 1.56 on Tuesday on the back of substantial increase in open interest in 5300 and 5200 strike puts. Immediate support is place around 5158 while possible target on the upside is 5310.