SENSEX NIFTY
Feb 22, 2013, 09.47 AM IST | Source: Moneycontrol.com

See limited downside in Indian markets: Nirmal Bang

Nirmal Bang has come out with its derivative report. According to the research firm, the downside for the Indian markets is expected to be limited ahead of very imp economic event that is Union Budget.

Nirmal Bang has come out with its derivative report. According to the research firm, the downside for the Indian markets is expected to be limited ahead of very imp economic event that is Union Budget.

Indian Markets ended down more than 1.5% yesterday. This is the biggest fall in a single trading session for the last 7 months. Thursday’s downfall was mainly on account of negative global cues. Global equity markets experienced the jitters yesterday due to monetary tightening fears following the release of the Federal Reserve minutes.  Overseas, Dow closed in red yesterday at 13,880.62 (down 46.92 pts). The European markets also closed in red with FTSE, CAC & DAX down 1.65%, 2.35% & 1.92% respectively.  FIIs were net buyers in cash to the tune of 1213.57 Cr whereas they sold in Index Future to the tune of 485.7 Cr  India VIX drastically increased by 8.59% to close at 16.94, touching an intra-day high of 17.25.

Heavy addition in call OI build up at 5900-6000 level indicates dominance of the bears in the markets but the downside for the Nifty Future is expected to be limited from this level. The highest put OI build up at 5800 is expected to provide firm support to the markets. Expectation of limited downside is also supported by the PCR OI at 0.88. Highest OI build-up is seen at 6000 Call and 5800 strike Put, to the tune of 13.11 mn and 12.50 mn respectively. 

Outlook on Nifty:

Markets are likely to open in red today on account of negative global cues. But the downside for the Indian markets is expected to be limited ahead of very imp economic event that is Union Budget.

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