Bulls Vs Bears : Market ends its five-day losing streak to close higher

The bulls can breathe easy as the markets today ended its five-day losing streak to close in the green. Nerves calmed after the Swiss regulators threw a lifeline at Credit Suisse. Credit Suisse is trading 21% higher since yesterday. European indices have also gained and are trading in the green. Nifty on the other hand after an initial fall recovered to close 13 points higher near 17000. Bank Nifty also closed 81 points higher.

The advances in Nifty stocks were 942 while the declines were 1349 and 96 stocks remained unchanged. This is slightly weaker compared to yesterday’s advances and declines.

IndiaVix cooled-off to 16.22 (-0.08). IndiaVix had made a high of 17.35 before cooling off. This is a positive sign.

What the ECB does today will be a precursor to what Fed would do next week. European and US regulators has common points to address i.e., inflation and stability. If ECB goes ahead with a rate hike US might follow suit and the markets may again see some volatility.

JP Morgan expected that $2 trillion could be injected into the US banking system by the Federal Reserve’s emergency loan program. With this kind of infusion, a hike doesn’t fall in place. Markets will most likely take a breather.

FIIs were net sellers today and sold Rs.282 crore in the cash market. On the other hand, DIIS were net buyers at Rs. 2051 crores. The intensity of FII selling for today has been less.

Stocks

The biggest gainers in the Nifty 50 were Eicher motor, Tata Consumption and Divis Lab while the losers included Hindalco, Tata Steel, JSW Steel, Indusind bank, Bharti Airtel and Infosys.

Zee Entertainment was in the limelight. It has agreed to pay Indusind Bank’s due of $10 million. Zee closed 9% higher as Indusind Bank is likely to withdraw the insolvency proceedings against Zee.

Sectors

Nifty media closed gained maximum at 4.16 % followed by Nifty FMCG, Nifty Realty, Nifty consumption and Nifty Energy each closing higher up by 1%. The biggest losers were Nifty metal that lost over 2.58%.

Open Interest

The total open interest (OI) for calls for the next weekly expiry of 23 March 2023 is at 5.92 crore while that of the puts is 3.58 crore. The maximum OI for calls was at 17800 followed by 17000. While the maximum OI for the puts is also at 17000. The markets have closed near 17000. Any positive news result in a good number of short coverings and the bulls may probably make some quick profits.

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Bears are tiring out

Today’s market move indicate that the bears are tiring out. Any positive news both from Europe and US can have a positive trigger and a short covering could be seen.