Indian Markets lost 4% on Friday - Nirmal Bang

The Indian Markets experienced a bloodbath on Friday. The markets lost 4% on account of negative global cues together with apprehension of sovereign rating downgrade on domestic front. This was the biggest fall in single day in percentage terms with Nifty breaching the psychological level of 5500 on intraday basis.

FIIs were net sellers in cash as well as Index Futures to the tune of 563.2Cr and 987.2Cr respectively.

India VIX has reported a massive increase of 26.42% to close at 23.64 touching an intra-day high of 24.67.

Massive addition in call OI build up at 5500, 5600 & 5700 together with shifting of put OI build up to the lower strikes such as 5400 indicates strong bearish undertone in the markets.

But the put OI build up at 5400 & 5500 are expected to provide firm support to the Nifty.

Highest OI build-up is seen at 5700 Call and 5400 strike Put, to the tune of 7.25 and 8.98 mn respectively.

Markets are likely to open on a negative note following the mix global cues and can bounce back later during the day mainly due to short covering.

Source : Equity Bulls

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