Asian Markets

Asian markets are trading mixed. Shanghai Composite was up 3.32 points (+0.11%) at 2,962.68. Nikkei rose 8.88 points (+0.09%) at 9,967.32. Seoul Composite gained 11.59 points (+0.83%) at 1,401.66. Taiwan Weighted added 69.13 points (+1.07%) at 6,501.29. However, Straits Times was down 10.92 points (-0.47%) at 2,322.22.

US markets

Dow Jones Industrial Avg. slipped 82.38 points (-1%) to settle at 8,447. S&P 500 fell 7.90 points (-0.9%) to end at 919.33. Nasdaq declined 9.02 points (-0.5%) to end at 1,835.04.

Indian ADRs

Indian ADRs plunged on Tuesday. Satyam Computers plunged 4.6% at $ 3.11, Infosys went down by 1.24% at $ 36.78, Wipro declined 0.42% at $ 11.8 and Patni Computers slipped 0.36% at $ 10.96. ICICI Bank lost 4.22% at $ 29.5, HDFC Bank fell 2.13% at $ 103.13. MTNL tumbled 0.91% at $ 4.34 while Tata Communication slipped 0.2% at $ 19.66. Tata Motors crashed 9.36% at $ 8.52 and Sterlite Industries plunged 5.54% at $ 12.44.

US markets ended in red as bad consumer confidence and expectations readings disappointed. June consumer confidence missed expectation & came in at 49.3. Expectations index also missed the consensus estimate.

Crude Oil

Crude oil futures pared losses in post-settlement trading on Tuesday after industry inventory data showed crude stocks fell much more than expected last week. NYMEX light sweet crude contract for August delivery was down 89 cents (-1.24%) at $70.60 a barrel. It had earlier settled down $1.60 (-2.24%) to close at $69.89, trading from $68.90 to $73.38. London Brent crude contract for August delivery was down $1.19 (-1.68%) at $69.80 a barrel.

Gold

Gold futures tumbled below $930 an ounce on Tuesday as a stronger dollar prompted broad-based selling across the commodities sector, and better macroeconomic sentiment could further decrease safe-haven buying in the metal. US August futures settled down $13.30 (-1.4%) at $927.40 an ounce on the COMEX division of the New York Mercantile Exchange. Spot gold traded at $926.50 down from its previous close of $937.05.

F&O Activity

Total Futures Open Interest was down by Rs 614 crore and total Options Open Interest was up by Rs 2035 crore. Nifty was down 2.3% and Nifty Futures Open Interest was up 4%. Nifty Implied Volatility stood at 41-43% levels. Nifty Put-Call Ratio was constant at 0.91. Nifty Calls added 20 lakh shares in Open Interest and Nifty Puts added 18 lakh shares in Open Interest. Stock Futures shed 2.1 crore shares in Open Interest.

FII Activity

FIIs were net buyer of USD 82 million on June 29. MFs were net buyer of Rs 175 crore on June 29. Total F&O Open Interest was up by Rs 1420 crore to Rs 57885 crore. FIIs were net buyer of Rs 108 crore in cash on June 30 (provisional fig). DIIs were net buyers of Rs 198 crore in cash on June 30 (provisional fig). FIIs were net sellers of Rs 938 crore in F&O.

Dollar-Rupee

The Indian rupee opened at Rs 48.11 per dollar versus Rs 47.90 yesterday. On Tuesday, the spot rupee closed higher at Rs 47.90 per USD as against its previous close of Rs 48.10 per USD.

Market Outlook

Markets are expected to be volatile ahead of the Budget which holds the key for near-term direction. Market is expecting policy moves in de-regulating the economy. Support for the sensex is at 14200 and the resistance to up move is at 14810, 14900.  The support for the Nifty is at 4210, 3820 and the resistance to the up move is at 4380.