Market Commentary
Indian market saw profit booking today and closed the session lower. The BSE index down by more than 150 points and NSE was down by little over 50 points.
Even stronger than expected IIP data failed to cheer the market. September IIP came in at 9.1% as against 11% on month-on-month basis and 6% on year-on-year basis. The combined turnover in the NSE was little over one lac crore along with a negetive market breadth. Commodity shares saw good amount of profit booking after yesterday’s sharp rise and due to rise in the dollar index. The dollar index is trading at 75.32 at the time of writing this report. Domestic fund houses booked profit in today’s market while FII’s remained net sellers in today’s market. In the morning global cues was flat but in later half it turned negative. European markets were modestly in the red and the US index futures were down 0.5%, at the time of writing this report. Shanghai and Taiwan Weighted were flat while other Asian markets declined 0.5-1.4%.
Market Outlook ( Cash & Derivative)
Nifty November future closed at 4953.1. Nifty future closed at a premium of 5 points along with decrease in open interest by 0.71% indicating unwinding of long position in the Nifty future. Nifty cost of carry increased showing bullish sentiment among traders. Nifty put call ratio decreased to 1.28 from 1.33 due to profit booking in the put options. . FIIs net sold index futures and stock futures to the tune of 700 cr and 775 cr respectively indicating some selling pressure in the near future.
Index Technical
Nifty support -: 4920, 4860
Nifty resistance -: 5000 , 5020
Stock Idea
Long position in the short run should be avoided.
