May 04, 2012, 10.24 AM | Source:

Opening bell: Nifty, Rupee resume downside journey

The Indian markets 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 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.

Top gainers on the Nifty were Cipla, Wipro, ITC, ONGC and Cairn India. Top losers on the Nifty were Hero Motocorp, Axis Bank, Kotak Mahindra, DLF and SBI.

The petroleum ministry has struck down Reliance Industries Ltd's plan to recover $1.2 billion in costs before the energy major starts sharing profits with the government from its gas field off the Andhra coast, newspapers reported on Friday. Reliance was trading at Rs 734.95 down 0.53% from its previous close of Rs 738.85. 

How to play Rupee?

The rupee opened lower against the dollar at 53.6550/6650 vs 53.41/42 Thursday close. The USD/INR takes out 53.51 resistance in early trade with next psychological level at 54. Some end-of-week profit taking may help slow pair's gains.

The RBI will also be watched for any likely intervention. 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.

Asia Weak

Asian shares fell for a second successive day on Friday as another batch of lacklustre US data stoked concerns that the recovery in the world's biggest economy is faltering.

The euro was steady after a bumpy session on Thursday, when European Central Bank chief Mario Draghi gave a more upbeat assessment of the region's battered economy, reducing hopes of further monetary stimulus measures in the pipeline.

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%

READ MORE ON  Nifty, Sensex, markets


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