On Friday, stocks struggled to walk their way toward new 2-yr highs after Egypt''s president gave into calls for his resignation. As a result stocks quickly overcame a lower open to push into positive territory pushing oil prices to a 1.4% loss at $85.55 per barrel.
The slide in oil prices hindered interest in the energy sector, which declined to a fractional loss. However, financials outperformed the broader market by a wide margin of 1.4%. Large-cap tech also showed an upbeat, augmenting Nasdaq to close near its session high.
Kraft (KFT 30.66, -0.45) reported strong set of numbers and an upside surprise from Chipotle (CMG 268.73, +12.10). From Macro economic view the December trade deficit reported at $40.6 billion, which was at par with the $40.4 billion deficit that was largely expected. However, the December deficit is greater than the $38.3 billion deficit reported for the prior month.
The preliminary consumer sentiment reading for Feb came in at 75.1 below expectation of 75.5. However, it is stronger than the 74.2 that was registered for the prior month.
The overall market added 1.1% in open interest with an increase in average cost of carry from -0.94% to 21.12%.
Capital Goods and Energy sectors witnessed the highest addition in open interest at 3.04% each while the Realty space shed 1.28% in open interest.
In the Energy space, Reliance and Gail saw the highest addition in open interest at 11.27% and 8.77% due to long accumulation while IGL and Petronet shed 8.06% and 2.93% in open interest respectively.
In the Capital Goods space, ABB and BGR Energy saw the highest addition in open interest at 13.54% and 8.1% on the back of short accumulation while Praj Industries and Cummins India shed 3.96% and 3.61% in open interest.
In the Realty space, Sobha and Orbitcorp saw the highest addition in open interest at 2.48% and 1.59% while DLF and HDIL shed 2.51% and 1.66% in open interest respectively.
DLF February series OTM call options strikes saw fresh addition of short positions in the last session, indicating that the stock is likely to trade with a negative bias in the near term.
Canara Bank: Canara Bank witnessed addition of long positions in the last trading session. The stock added 7.37% in open interest along with an increase in cost of carry from -9.91% to -4.05%. Long positions can be assumed in the stock at 595-600 for targets of 620 levels with a stop loss placed below 583 (Spot) levels.
Onmobile: Onmobile witnessed addition of short positions in the last trading session. The stock added 12.57% in open interest along with an increase in cost of carry from -1.4% to 11.77%. Short positions can be assumed in the stock at 205-208 levels for targets of 195 and 192 levels with a stop loss placed above 217 (Spot) levels.
Wipro: Wipro saw addition of long positions in the last trading session. The stock added 5.21% in open interest along with a decrease in cost of carry from -15.46% to -26.97%. Long positions can be assumed in the stock above 450 for targets of 460 and 465 levels with a stop loss placed below 440 (Spot) levels on a closing basis.
US Stock markets inched higher amidst low volumes as traders focused on encouraging economic data on Philadelphia area Manufacturing which overshadowed weak Jobs report and rising Consumer price data. Stock markets in Asia region are trading with healthy gains in the morning.
