Indian Markets to open flat with negative bias - Nirmal Bang

Indian markets experienced blood bath yesterday. On the back of Wednesday's 1.50% loss the market further slipped around 1.80% on Thursday, on account of lingering concerns regarding union government's stability and selling by ETF funds. The market has touched the lowest level since November 21 last year.

Overseas, Dow closed in green at 14,606.11 (up 55.76 pts). But the European markets closed in red with FTSE, CAC & DAX up 1.20%, 0.77% & 0.73% respectively.

FIIs were net sellers in cash as well as in Index Future to the tune of Rs 326.2 Cr & 985.1 Cr respectively.

India VIX increased by 6.59% to close at days high 15.85 touching an intra-day high of 16.08.

Significant addition in call OI build up at lower strikes such as 5600 & 5700 indicates very bearish sentiments in the markets. But the downside for the Nifty Future is expected to be limited from the current levels with highest put OI build up at 5600 level.

Highest OI build-up is seen at 5700 Call and 5600 strike Put, to the tune of 8.24 mn and 8.76 mn respectively.

Markets are likely to open flat with negative bias following the mix global cues and are likely to remain range bound during the day.

Source : Equity Bulls

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