Markets likely to open on negative note - Nirmal Bang

Indian markets traded in red throughout the day to end near day's low point on Wednesday. The markets lost around 1.50% on account of fresh concerns regarding union government's stability. BJP Leader LK Advani hinted at early elections in 2013 which weighed on the markets yesterday.

Overseas, Dow closed in red at 14550.35 (down 111.66pts). The European markets also closed in red with FTSE, CAC & DAX down 1.10%, 1.34% & 0.88% respectively.

FIIs were net sellers in cash as well as Index Futures to the tune of Rs 368.3Cr and 722.1Cr respectively.

India VIX increased by 5.46% to close at days high 14.87 touching an intra-day high of 15.05.

Short term trend for the Nifty Future seems to be turned negative. But Highest put OI build up at 5600 level is expected to provide firm support to the markets.

Highest OI build-up is seen at 5900 Call and 5600 strike Put, to the tune of 7.37 mn and 9.69 mn respectively.

Markets are likely to open on a negative note following the weak global cues but may recover during the second half of the day as 5600 will act as a major support to the market.

Source : Equity Bulls

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