Daily Market Outlook: 25 June 2009

The stock market opened on a positive note, but shed its early gains in the initial minutes of the trading itself. It hovered around yesterday’s close till afternoon but picked pace in the latter part of the day. However majority of action was witnessed in small cap and madcap space and few selected heavyweights. Nifty finally managed to close at 4292.95, up46 points. Volumes in Nifty future were in line with the average trading volumes. Around 8.0 lakh shares were added in open interest with an increase in the cost of carry indicating long accumulation. On the option front, implied volatility has decreased marginally indicating that buying may continue to emerge at lower levels and Nifty may trade with a positive bias.