See Nifty open on flat note led by mixed global cues: ICICIdirect

February 11, 2008: The Sensex dropped 4.57 percent within a day, as the Index shed 796.43 points. The benchmark Index fell 833 points, or 4.78 percent and closed at 16,630 on growing global worries over slowing economic expansion. The reasons cited for this fall were weak global markets and disappointing corporate earnings.

ICICIdirect's Derivative Report:

Nifty

Consolidation continued to take place in the index near 9125. However, a late surge in a few heavyweights helped the index to end 33 points higher. Nifty futures settled at a premium of 27 points. India VIX fell 5.4 percent and ended at 11.6.

FIIs sold Rs 169 crore while DIIs bought Rs 9 crore in the cash segment. FIIs sold Rs 239 crore in index futures and bought Rs 323 crore in index options. In stock futures, they sold Rs 478 crore.

The highest Put base is at the 9100 strike with 59 lakh shares while the highest Call base is at the 9200 strike with 52 lakh shares. The 9000 and 9100 Call strikes saw closure of 2.2 and 4.7 lakh shares, respectively, while 9000 and 9100 Put strikes saw additions of 1.3 and 5.1 lakh shares, respectively.

Nifty Bank

For a third day in a row, the index continued to hover near 21500 and ended the weekly expiry with a sharp rise in basis along with closure of open interest indicating short covering near support area. We feel the index is likely to continue its consolidation and move towards 21800.

Nifty Future: The Nifty is likely to open flat on the back of mixed global cues. Buy Nifty in the range of 9140-9150 for targets of 9200-9220, stop loss: 9120.

Nifty Bank Future: For a third day in a row, the index continued to hover near 21500 and ended the weekly expiry with a sharp rise in basis along with closure of open interest indicating short covering near support area. We feel the index is likely to continue its consolidation and move towards 21800. Buy Nifty Bank in the range of 21450-21500, targets: 21600-21700, stop loss: 21390.

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