Tracking mixed cues from global markets, Indian stocks opened lower and were volatile Thursday. At 12:35 pm, Nifty was down 0.93 per cent at 4118 and Nifty July futures discount widened to 26 points from 20 points on Wednesday.
The contract price fell 0.94 per cent and open interest added 9.24 lakh shares. Widening discount coupled with rising open interest suggests short build up in the contract at higher levels. The cost of carry was negative 11.33.
Bears continued battering the markets as they are not optimistic on the profit outlook of Indian Inc. Rising inflation is also one of the major concern for the players as crude oil price is steady above $136 a barrel.
Bears have written calls at strikes 4100 while bulls have bought calls at strikes 4200 giving a crucial level for the Nifty at 4100. A strong tussle was seen at 4000 put. It added 2.6 lakh shares or about 5.8 per cent in open interest. However, bears entered buying puts at 4100 levels.
DLF dropped 1.05 per cent while open interest added 7 lakh shares. HDIL plunged 5.5 per cent and Unitech July price decreased 3.41 per cent and open interest rose by 9.7 lakh shares, indicating a strong short build up in the stock.
Reliance Industries July fell 1.7 per cent while open interest added 1.53 lakh shares. Reliance Petroleum slipped 0.53 per cent while open interest added 8 lakh shares.
IT shares dragged as NASSCOM lowered IT & BPO growth expectations for 2008-09. Infosys Technologies slid 1.78 per cent, Satyam Computers July fell 2 per cent and Financial Technologies skid 3 per cent.
Banking stocks were trading lower on fears rising inflation might tempt Reserve Bank of India to increase the CRR. Axis Bank dropped 4.65 per cent, IDBI fell 3.9 per cent while open interest added 2.56 lakh shares. Bank of India skid 3.11 per cent.
Larsen & Toubro slid 0.8 per cent. JP associates dropped 4.11 per cent while open interest added 5.23 lakh shares. Reliance Infra slipped 2.6 per cent.
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