Mkts likely to open with positive bias: An analysis

The markets closed marginally higher amid volatility yesterday. It is likely to open with positive bias. Trend in the second half will be dependent on F&O pulls. FIIs net sold Rs 332 crore while DIIs net bought Rs 142 crore in cash markets on November 25, as per provisional data.

By Anuj Singhal, Head-Markets Research at CNBC-TV18

Global markets

The Dow Jones and S&P 500 closed at fresh 13-month highs on the back of strong economic data and weak dollar. CRB Index was up 2.3% and Dollar Index down 1%.

The Dow Jones Industrial Average was up 31 points at 10,464, S&P 500 Index up 5 points at 1,110 and Nasdaq Composite was up 7 points at 2,176.

Initial jobless claims fell to 466,000, lowest level in more than a year. Continuing claims fell to 5.42 million, multi-month low. New home sales were up 6.2% in October to an annualized rate of 430,000, at 1-year high.

Asian markets ended mixed; Hang Seng was down 0.8%. Shanghai and Straits Times were down 0.15% each. Kospi and Nikkei were flat. However, Taiwan was up 0.4%. SGX Nifty was down 0.6%.

Market outlook

The markets closed marginally lower amid volatility yesterday. It is likely to open with positive bias. Trend in the second half will be dependent on F&O pulls.

Dollar Index made new 2009 low of 74.28. Crude came back to $78/barrel while Gold is approaching $1200/ounce.

Institutional action - November 25: Source - NSE

FIIs net sold Rs 332 crore while DIIs net bought Rs 142 crore in cash markets on November 25, as per provisional data.

FIIs net bought Rs 412 crore in Nifty Futures and net bought Rs 247 crore in Nifty Options while net sold Rs 254 crore in Stock Futures.

F&O Highlights

The marketwide and Nifty rollover completed at 64%, which was in line with average. Nifty Open Interest PCR (put-call ratio) was up at 1.71 and December PCR was at 1.41. The Nifty December futures ended with 12 points premium.

High rollovers were seen in autos, metals and banks while low rollovers in technology and real estate stocks.

Short positions were seen in real estate and select IT stocks whiel long positions in metals, banks, autos. Stocks to watch are BPCL and Orchid Chemical.