Is Crude Killing The Market

Thursday, May 22, 2008 | | |

Stocks in India ended in negative territory Thursday on weak cues from Asian and European markets and pressured mainly by record high crude oil prices.Of the 50 shares comprising the Nifty, only five--Dr Reddy’s, Sterlite Industries, Hero Honda, GAIL, and Hindalco--held their ground.

The biggest losers were Suzlon, Tata Motors, Reliance Infrastructure, Idea Cellular, and Punjab National Bank.

Nifty May futures contract price slipped 2 per cent and giving up its 10 points premium from Wednesday. Nifty June ended at 5023, a discount of 4 points to the spot.

Huge build up of positions was witnessed in Nifty 5000 call. Call of 5100 May and 5200 June also added positions in open interest. Nifty puts of strikes 4900 and 5100 shed positions, while 4800 put saw significant build up of positions. This indicates a broad Nifty zone of 4800-5200.
if global cues remain weak, Nifty may touch 4950 levels. On the upside, 5150 will be a strong resistance for the Nifty.