Indian markets ended a choppy session on a weak note Tuesday, ahead of October F&O series expiry. Metals, banks and PSU stocks were under pressure while auto and FMCG ended modestly higher.
According to analysts, rollovers to the next series have been lower as FIIs await crucial economic and political events in the US.
“Ratio of FII to market-wide OI has been around 77-79% on higher side while 64-66% on lower side. At this point of time low FII/Marketwide ratio of 66% suggests caution since Nifty gains have been insignificant in current month even though being near the recent highs.
On the Nifty options side, the highest open interest on calls is 6200 while 6000 on the puts suggest a range of 6000-6200.
Open Interest for at-the-money Nifty November calls are surprisingly low at the moment considering the fact that maximum theta or time value can be extracted by shorting both calls and puts a few days before the start of fresh series,” said Arun Mewawalla, AVP, Technical & Derivatives, Quantum Securities.
Trend for November series is likely to be dictated by important US economic data like US GDP on Oct 29, US manufacturing data on Nov 1, US House of representative elections and US Fed meet which may give direction on Quantitative Easing.
“Investors should wait and watch until the above given factors unfolds,” Mewawalla added.
National Stock Exchange’s Nifty ended at 6082, down 23.80 points or 0.39 per cent. The broader index touched a high of 6120.25 and low of 6074.65 in today’s trade.
Bombay Stock Exchange’s Sensex closed at 20,221.39, down 81.73 points or 0.40 per cent. The index touched intraday low of 20189.30 and high of 20344.68
BSE Midcap Index was down 0.42 per cent while BSE Smallcap Index inched 0.22 per cent higher.
Amongst the sectoral indices, BSE Metal Index fell 1.21 per cent, BSE Bankex declined 0.84 per cent and BSE PSU Index slipped 0.77 per cent. BSE Auto Index moved up 0.86 per cent and BSE FMCG Index advanced 0.50 per cent.
Bharti Airtel (-2.57%), HUL (-2.43%), Cairn India (-2.37%), Tata Steel (-2.31%) and BPCL (-2.29%) were the top Nifty losers.
Maruti (3.98%), Reliance Capital (3.53%), ITC (1.63%), Jaiprakash Associates (1.47%) and DLF (1.37%) were amongst the gainers.
Market breadth was negative on the NSE with 1703 losers against 1586 gainers.
European markets were in the red while Wall Street is likely to open flat. At 4:50 pm IST, Dow Jones futures was down 0.03 per cent, S&P 500 declined 0.03 per cent and Nasdaq was up 0.04 per cent.
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