F&O Watch: HDFC Sec - Nifty discount is steady

HDFC Securities's reports on deriviative market says: The discount on Nifty August Futures continues to remain steady although it is on the higher side at 32 points.

The Nifty volume Put Call ratio has declined from 1.19 to 0.87 indicating that more call options have been purchased.

For the Nifty to sustain the uptrend it is important that it crosses the 3170 levels convincingly. On the downside, a close below the 3,070 levels would lead to weakness.

According to the broking firm, the markets could open flat to weak and remain rangebound for better part of the day. Post 12.30 pm, Some direction could be seen in the markets depending upon the markets in the West.

Capital Goods, Healthcare indices could do well while FMCG index could come under some pressure.

Auto and cement stocks could generate some trading interest based on expected monthly sales numbers and actual numbers announced over the next few days.

BHEL, Cipla, ICICI Bank, Infosys, Satyam and Tata Tea could outperform.