Market Activity

Nifty closed in green throughout the week except for Thursday and it crossed the 3900 mark on Friday as it closed strong at 3917, with a gain of 4.4% for the week. Major gainers during the week, in terms of price, were SRF, Parsvnath, IDFC, Polaris, Suzlon, JSW Steel, BOI, Escorts, Praj, TataSteel, Nagarjun Const, IFCI, India C ement, Sobha, Grasim, SAIL etc. Major losers were Renuka, Zee, Balrampur Chini, Triveni, etc. FIIs remained net sellers in Index futures as we witnessed build up of short positions. In Index options mixed activity was seen; they remained net buyers but long as well as short positions were taken in index options. They however, remained net buyers in stock futures to the tune of 16081 contracts, but added 54943 contracts in OI indicating formation of long as well as short positions with a bias towards long positions.

Market Outlook

Nifty closed well above 3900 levels and we also witnessed remarkable improvement in marketwide CoC as well as discount in Nifty shrinked to 15-20 points towards the end of session. The implied volatility of Nifty also dropped to 23-24% levels from 26-28% levels throughout the week. We expect some further upside in Nifty from current levels. Now, strong resistance is seen near 4000 levels on Nifty.