Severe Profit Booking takes a toll on Indian Markets - Nirmal Bang

The Indian market saw severe profit booking yesterday after its continuous 5 days winning streak. Selling was seen in nearly all sectors mainly FMCG, Banking and Metals.

Nifty Future closed over two % in red yesterday at 5994.45 (down 124.25pts) deleting OI to the tune of 1.27mn.

FIIs were net buyers to the tune of 244.1Cr whereas they sold Index Futures worth 38.7Cr respectively.

India VIX increased further by nearly 4% to close at 17.51 touching an intra-day high of 17.77.

A complete new scenario was seen in Nifty Option yesterday wherein the most awaited call writers came into force adding nearly 14.7mn and 072mn shares on strikes on 6000 and 6100 respectively. Moreover a backward shift in OI was observed on the put side from 5800 and 5700 giving a new bearish undertone in the market.

Highest OI build-up is seen at 6200 Call and 5700 strike Put, to the tune of 9.12mn and 10.10mn respectively.

Markets are likely to open on a positive note following the positive global cues and are likely to remain range bound during the day.

Source : Equity Bulls

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