The markets had opened on a flat to positive note when US markets had closed in red and a minor recovery was seen in the Asian peers. After opening flat the markets drifted lower to touch the lowest point of the day and later saw a sideways movement till the first part of the afternoon session. In the last one and half hour of trade, we saw good short covering due to the last day of November expiry and closed for the day at the highest point of the day. Lack of cues from the domestic as well as international front caused a sideways trending during the morning part but positivity in the US futures, European markets and positive inflation numbers helped market to recover later.
The rollover figures were disappointing with November rollovers just around 56% when it was around 76% in the previous month. Investor does not want to carry forward their positions due to uncertain market conditions. The FIIs have remained net sellers for some days now and they are seen exiting positions due to drastic fall in rupee along with weakness in equities. Gold and crude fell the other day but showed some strength today.
Rupee too had strengthened from the level of 52.36 yesterday and today came to a close around 52.1 against dollar. Food price index rose 9.01% and the fuel price index climbed 15.49% in the year to 12 November 2011, government data on Thursday, 24 November 2011, showed. In the previous week, annual food and fuel inflation stood at 10.63% and 15.49%, respectively. The primary articles price index was up 9.08%, compared with an annual rise of 10.39% a week earlier.
Nifty saw short covering in the second part of the day and tomorrow being the first day of the December F&O series, we may see some stability in the market even though the outlook still remains weak and uncertain. For Nifty the major resistance is there at 4804 and 4854 while the support is seen at 4673 and 4594 levels.