Fed Rate Fears Nifty will Drift lower

Post Market Commentary

The Nifty opened in the red and hit a day's high in early trading session as per our expectation Nifty drifted lower and traded near the 7820 levels till afternoon session. In the last trading session Nifty was very volatile and finally Nifty given close near days low at 7829.10 levels with lose of 43.15 points.

The market breadth for the Nifty Index has turned from strong to weak as the advance decline ratio ended on the negative side. 12 stocks closed with the green mark whereas, rest of the 38 stocks closed in the red.

Top 5 Nifty Gainers: Tech Mahindra was the top gainer gain with 2.87% followed by Hindustan Unilever, Sun Pharmaceuticals Industries, ITC and Cairn.

Top 5 Nifty Losers: Tata Steel was the top loser with loss of 5.46% followed by VEDL, Tata Motors, Larsen and Toubro, and Ambuja Cements.

In today’s trading session CNX FMCG sector was the top performer closed with gain with 0.95% and CNX METAL sector was top loser lose with 2.35 %.

The Asian markets were quoting with mixed; China’s Shanghai Composite declined by 3.52%, Hong Kong’s Hang-Seng slipped with 0.55%, while Japan’s Nikkei was up by 0.34%.

The European market gave negative opening in today’s tiding session.

Derivative Analysis

The Nifty September futures open interest has increased by 3.22%. Bank Nifty September futures open interest has increased by 1.19%. Nifty market closed at 7829.10 levels & Bank Nifty marked closed at 16729.55 levels.
 
The Nifty September future closed at a discount of 7.1 point.
 
The October series closed at a premium of 30.25 points.
 
The Implied Volatility of money options declined by 2.37%.
 
Nifty PCR-OI has sustained at 1.00evels.






Interpretation: On the basis of above data, it’s observed that 7800 may act as strong Support & 8000 may act as strong resistance for Nifty Index. Further moment for the index would be on the positive side.