Markets remain subdued, RIL slips over 1%

Markets continued to trade marginally in the red after a soft opening due to losses in frontline heavyweight Reliance Industries and ONGC.  The S&P CNX Nifty was down 13 points, at 5542 and the Sensex has declined 38 points, at 18,458.

In past few sessions Indian markets have shrugged off weak Asian peers and ended in the positive. There is a buildup of long positions and short covering in the market after some of the negative triggers were differed such as the June 9 EGOM (Empowered Group of Ministers) meeting coupled with expectaions of a normal monsoon said Shshank Mehta, Derivatives Strategist, Nirmal Bang. FIIs were net buyers of Rs 2,400 crore from expiry-to-date in the cash segment.

However, derivative analysts expect markets to remain volatile during the June expiry. Mehta said, “the concentration of calls at 5800 and that for puts at 5400 along with Implied Volatity or estimated volatility of Nifty options around 16 which is at the lower-en of the trading range indicates that Nifty should remain fairly volatile."

Reliance Industries was the top loser on the Sensex, down 1% at Rs 947 dragging the Sensex down by 20 points on concerns that output from KG D6 Basin may not rise. However, based on deriviative data analysts expect further upside. Mehta  said that the downside in RIL is limited as there hase been some short covering in the past session which could lift the stock in the coming days. Other stocks from the Oil & Gas space such as ONGC was down 1.8% at Rs 271 dragging the index down.

Realty shares were on a firm ground today. DB Realty gained 4%, Ackruti City was up 2% and Godrej Properties advanced 0.6%,

Market breadth was positive, 1280 stocks advanced for 883 stocks which declined.