Public CompanySupport for the index expected at 5,080
The Nifty witnessed selling at higher levels and closed in a Doji pattern, indicating indecisiveness among participants. The Sensex moved above the important trendline level of 17,290 but could not sustain it and closed at 17,170. The market is expected to be listless with mid-cap counters expected to outperform large-cap stocks. The support for the Nifty is expected at 5,080.
- Markets in consolidation mode - Pre-market: Markets likely to open positive - Market outlook: Bulls to remain in command - F&O Outlook: Support for index seen at 5,000 level - Markets spurt on positive global cues; auto, pharma, metals lead - Template investing: Good in a downturn
Mid-cap banks hogged the limelight in the futures and options segment with fresh long build-up in Andhra Bank, Dena Bank, IDBI Bank, Syndicate Bank and Vijaya Bank. IDBI Bank was up 5.5 per cent and added 2.96 million shares in open interest, while Dena Bank was up 9.2 per cent and added 1.42 million shares in open interest, mostly through buy-side trades.
Long build was also seen in Tata Motors as its December futures rose 4.2 per cent and added 878,900 shares through buy-side trades.
Strong undercurrent was seen in IFCI, Gujarat State Petronet, Hindalco and Ashok Leyland. There was short-covering in Bharti Airtel, DLF and Suzlon Energy.
The Nifty December futures moved in a narrow range of 30 points from the previous day’s closing, which resulted in lower trading volume. Overall trading volume in the derivatives segment has declined by over Rs 4,000 crore, which indicates that participants are wary of taking positions.
The Nifty December futures traded at a discount of 10-20 points intra-day and closed at four points discount to the spot, indicating lack of fresh long positions. However, the futures saw profit-booking at higher levels as they shed 104,100 shares in open interest as against an intra-day built-up of one million shares.
Options traders wrote the 5,100 strike put and booked profit in the 5,000 put as they expected the Nifty to be range-bound in the near future with support at 5,080. The 5,200 strike put options saw fresh short build-up as it added 112,350 shares in open interest, mostly through sell-side trades.