Thursday, 3 May 2012

Opening bell: Nifty, Rupee resume downside journey

The Indian market and rupee resume their downside journey in the opening bell. The benchmark index Nifty is now trading perilously close to 5150 support zone. The rupee opened at 53.64 per dollar versus 53.41 yesterday.
The Sensex was down 65.34 points or 0.38% at 17085.85, and the Nifty was down 18.15 points or 0.35% at 5170.25. About 417 shares advanced, 490 shares declined, and 2512 shares remain unchanged.
IT stocks gained momentum on the upside. A 100 bps depreciation in rupee yields 25-40 bps improvement in operating margins of IT companies.
How to play Rupee?
The Indian rupee slid to an over four-month low as India’s policy uncertainty and worsening economic fundamentals are sparking concerns that a rout is in the making, one that the central bank will be unable to prevent it. recommends buying USDINR above 53.55, with targets of 53.72/53.80 and stop loss of 53.46.”
Chart Check
The action formed a Bear candle with a Body Gap-Down area. In the last two months, whenever the Index slipped below its 200-day EMA, levels around 17,000 provided temporary support. Now, below the 200-day EMA, we may watch if a similar thing happens again. However, until it can hit a higher top above 17432, the structure remains negative.
Commodity Corner
Crude oil prices deepened their sell-off on Thursday as traders digested a slew of weak economic headlines and news of rising US crude-oil stockpiles. Gold ended lower on Thursday after the European Central Bank indicated an imminent stimulus was unlikely amid caution ahead of the upcoming US employment data.
Asian markets were trading lower.
The US markets finished in negative territory, with the S&P falling below its key 1400 milestone, weighed down by a weak ISM non-manufacturing report and as investors stayed cautious ahead of today's government jobs data.
Dow Jones Industrial Average was down 0.47% or 61.98 points at 13206.59. Nasdaq Composite slipped 1.16% or 35.55 points at 3024.3. Standard & Poor's 500 shed 0.77% or 10.74 points at 1391.57.
F&O cues:
Total Puts adds 16.7 lakh shares, Total Calls adds 24.2 lakh shares
5100 put, 5600 call & 5000 put have the Highest OI Build up
5100 put adds 7.7 lakh (16%) shares in OI prem up 35%
5600 call adds 3.3 lakh (7%) shares in OI prem down 23%
5000 put adds 6.9 lakh (15.6%) shares in OI prem up 37%
5400 call adds 1.3 lakh (3%) shares in OI prem down 24%
5300 call adds 6.6 lakh (17%) shares in OI prem down 22%
5200 put sheds 3.9 lakh (8.5%) shares in OI prem up 29%
Total Nifty Futures added 2 lakh shares in OI
Stock Futures adds 1.80 cr shares in OI
Nifty PCR fell to 1.08 from 1.1
Nifty May Futures are trading at 11.4 points premium v/s 7.8 points premium to Spot
India VIX closed at 19.25 up by 3.83%

Published on Fri, May 04, 2012 at 09:04 |  Source :

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