CNBC-TV18's Head-Markets Research, Anuj Singhal -Wednesday’s action was quite interesting but explicable. Nifty action hovered around options with not many traders taking naked bet with a day off in between and stock futures saw select buying and unwinding in those, which had run up too hard.

The most intriguing aspect though was the way PCR surged to 1.47. Its about the highest PCR since the big fall we had and clearly market is in a bullish phase even if it turns out to be a false breakout. 5200 is emerging as an equilibrium point with both the Puts and Calls adding significant Open Interest around this level. There is a real sense among traders that if 5200 were broken then the next logical target for the Nifty would be 5400

In individual stocks, midcaps had a field day. Stocks like TVS Motor, Praj, Dena Bank saw huge pile up in Open Interest with long positions getting added in most of these stocks and more importantly, the positions were carried forward. However, there was unwinding in the likes of IFCI and Nagarjuna Fert post their dismal numbers and also in stocks like RNRL which had a decent run-up.

The stock to watch today would be Idea Cellular. Wednesday’s action suggested the stock is in for a big breakout. Telecom as a space in fact has looked good ever since Bharti’s stellar numbers

DISCLAIMER: The author is not allowed to trade in equity markets including Futures and Options. His only exposure to capital markets is via shares of TV18 and Network18 granted to him as ESOPs by the company and investments in some long-term mutual funds.