India VIX moved up by 6.70 percent at 13.68 levels. VIX has gone to its highest levels in last 12 sessions amid political concern.
Nifty PSU bank index extended its losses with 1.5 percent cut. Bank of India, PNB, Bank of Baroda, Allahabad Bank, OBC, Union Bank and Syndicate Bank down 4-7 percent.
The S&P BSE Sensex rose nearly 8 percent in 2018 compared to 14 percent fall in the S&P BSE Midcap index and 17 percent drop in the S&P BSE Smallcap index in the same period.
Bajaj Finserv, Berger Paints, HDFC Bank, Seamec and Nestle are some of the very few stocks that hit fresh 52-week high in the morning trade on the NSE.
According to Pivot charts, the key support level for Nifty is placed at 10,949.57, followed by 10,891.13.
The Sensex closed higher by 196.19 points, or 0.54, to 36519.96, while the Nifty rose 71.10 points, or 0.65%, to 11008.00
Option band signifies an immediate trading range in between 10,929 to 11,080 zones, experts said.
Hemang Jani, Head - Advisory, Sharekhan, said any major declines should be used as an opportunity to get into quality names in the consumption and financials space
We recommend a stock-specific trading approach in such a scenario. Since stocks are trading volatile, keeping positions on both the long and short side are advisable, says Jayant Manglik of Religare Broking.
Call unwinding was seen at the strike price of 10,800, which shed 1.03 lakh contracts, followed by 10,700, which shed 0.42 lakh contracts and 10,500 which shed 0.35 lakh contracts.
Meaningful Call writing was seen at 11,000 followed by 11,100 while Put unwinding was seen at all the immediate strike price.
Among sectoral indices, barring IT stocks, all of them ended in the red, with deep cuts seen among pharmaceuticals, metals, energy and PSU Banks, among others. In the broader markets, investors looked to dump stocks, as the Nifty Midcap index ended over 2.5 percent lower.
Using spot prices as the underlying creates a lot of complexities in options pricing and investors generally gets confused with it. Let’s look at a simpler way to option prices i.e. futures as an underlying.
Mid and Small cap stocks usually have lower liquidity making re-accumulation of these stocks a time consuming task and so the recovery in the fortune of aggregate mid and small cap stocks would not be V-shaped rather it would be U shaped.
TCS' market cap (Rs 7,58,536.46 crore - $111 billion) is 2.6 times bigger than Infosys (Rs 2,85,924.10 crore - $41.72 billion) as of July 13, 2018 while Infosys was 1.5 times bigger than TCS in 2009.
Experts reckon that stock-specific action is likely in the coming week as a lot of big corporate earnings (including those of nine Nifty stocks) are scheduled to be announced.
When a set of factors that have panned out in the past tends to repeat itself in the future, we expect the same outcome to occur, as was observed in the past.
On July 13, Sensex rose to a record high of 36,740.07, while Nifty hit a high of 11078.3 in the Thursday's trading session.
There are challenges as trade-based loans have higher documentary requirements, are operationally intensive and require additional cost to adhere to regulatory and compliance policies.
Strong global cues and fall in crude oil prices helped the index to climb record highs. The ruboff effect was seen on the small & midcap stocks as well which remained under pressure in 2018 after posting stellar returns in calendar year 2017.
All sectoral indices have managed to end in the red, with cuts visible in financials, FMCG and pharma names
The S&P BSE Sensex hit a record high of 36,443 on January 29 but witnessed selling pressure in the past 5 months as traders preferred to book profits
21 stocks have hit fresh 52-week high on the NSE including HDFC Bank, MphasiS, Larsen & Toubro Infotech, Marico, Orient Press, Seamec and Hindustan Unilever.
A look at top bets by Karvy, which expects year-end target for the Sensex at 37,500.
For a correction to occur, experts state that oil prices have to stay above $80 a barrel and dollar has to increase sharply against the rupee