MTECHTIPS EQUITY MARKET NEWS

MTECHTIPS:-Market Snapshot
Nifty futures witnessed a sharp recovery after taking crucial support from 5630-5650 bands and rally was seen towards 5750 levels on the back of short covering in many frontline stocks. Nifty after crossing 5700 psychological area witnessed unwinding in 5700 strike price to the tune of 2.5mn shares. Market witnessed buying interest almost across the board especially in Realty, CG, Metal, Power, Banking, PSU, Tech and FMCG space whereas selling pressure was seen only in HC sector stocks. Nifty for the day, if it sustains 5750 levels then rally may be seen towards 5800 levels whereas if it fails to hold 5700 levels on downside then selling pressure may be seen towards 5650 levels.

MTECHTIPS:-Options Analysis
On the Options front, maximum Put OI is shifted at 5600 followed by 5500 strike price whereas maximum Call OI is at 5900 followed by 5800 strike price. The Put Call Ratio based on Open Interest of Nifty slightly moved down from 0.99 to 1 level. Historical Volatility of Nifty moved up from 17.51 to 17.84 levels and Implied Volatility also moved up from 16.02 to 16.06 levels. The market turnover increased by 19% in terms of number of contracts traded vis--vis previous trading day whereas in terms of rupees increased by 20%.

MTECHTIPS:-Technical Snapshot:
The Nifty gave a flat opening for the day taking weak cues from the world markets, but strong recovery was seen in the markets in final hours of trade as the index gained sharply on positive statements by the Finance Minister about reforms. It turned out to be a noteworthy session for the Indian equity markets as market bulls vehemently fought back, in the late trade, supported by Finance Minister P Chidambarams comment that there is no serious threat of a ratings downgrade.The main support to the Indian bourses came from European counters, which provided the required confidence to the investors with all the European markets witnessing bounce back after opening lower following Spains downgrade. Back home, the undertone in the Indian markets remained sanguine, as investors awaited for the next round of economic reforms from the UPA, while bracing for the latest batch of corporate results. All eyes will be on the earnings from IT titan Infosys and housing finance major HDFC on Oct 12. Investors will also keep an eye on the IIP data and CPI inflation, both of which will release on October 12.Support also came in after Cabinet Committee on Economic Affairs agreed to hike the prices of urea-based fertilizers by Rs 50 per tonne, thereby reducing governments fertilizer subsidy bill, estimated to touch Rs 65,000 crore this fiscal year. All the fertilizer stocks like Rashtriya Chemical Fertilizers, National Fertilizers, Coromandel International and Gujarat State Fertilizers all edged higher.