Indian Markets rally smartly on Monday - Nirmal Bang

Indian Markets have reported a smart rally on Monday, on account of increased expectation of rate cut by RBI tracking decrease in wholesale price index (WPI). The wholesale price index (WPI) increased by 7.18% YoY in December against the street expectation of 7.40%. Finance Minister announced that the implementation of the General Anti-Avoidance Rules ( GAAR) will be done from financial year 2015-16. This has provided additional impetus to the markets on Monday.

Overseas, Dow closed marginally positive yesterday at 13507.32 (up 18.89pts). The European markets closed mixed with FTSE down 0.22% and CAC & DAX up 0.06% & 0.18% respectively.

FIIs were net buyers in cash to the tune of 611.1Cr whereas they sold Index Futures worth 92.4 Cr respectively.

India VIX increased by 3.55% to close at 13.70, touching an intra-day high of 14.02.

Addition in put OI build up at 6000 level indicates dominance of bull in the markets. Nifty Future is expected to approach 6100 level in the days to come.

Highest OI build-up is seen at 6200 Call and 5900 strike Put, to the tune of 10.80 mn and 9.52 mn respectively.

Source : Equity Bulls

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