The market was seen consolidating on June 6 as expected from the previous day’s data amid selling by foreign investors and weak global cues. IT stocks, heavyweights in headline indices, were among the worst performers of the day.
The Nifty 50 index dropped 0.23 percent or 46.65 points to 18,551.20 as of 11am. The Nifty Bank index declined 0.17 percent to 44,028.20.
The weekly Options data for the Nifty shows accumulation of Calls at 18,600 – a signal that the level may emerge as a big hurdle for the index for this week. Put writers were largely absent, signalling dominance of bears in the market. On the monthly expiry, 18,600 saw heavy Put unwinding despite support at 18,500 points.
“Bulls are likely to get more conviction only above the 18,864 mark, while bears are unlikely to take control as long as the Nifty is above the 18,463 support level,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
FIIs on June 5 sold local shares worth Rs 701 crore, a second day of selling. Though domestic buyers have absorbed much of the impact, keeping the indices stable.
Rajesh Sriwastava, a Bengaluru-based derivatives trader, said he had taken a neutral position in Bank Nifty, which he has adjusted to bearish for the day now. He is short on IT stocks as well, including Infosys.
Among individual stocks, bears were seen adding to their short position in IT names, especially those from the midcap space. Persistent Systems, Mphasis, Coforge and Birlasoft were at the forefront of their onslaught.
Long unwinding, a mildly bearish phenomena, was seen in M&M Financial Services, Zee Entertainment and REC.
Cement makers were in demand. Bulls were seen taking new positions in Ambuja Cement, ACC and JK Cement.
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