MARKET UPDATE:Sensex crossed the 58,000 mark and at 58,131, up over 300 points, while the NSE Nifty up nearly 100 points at 17,300

Sectorally, Nifty Metal and Realty were the leading gainers, up over 1 percent each. All bank indices also seemed to have bounced back, trading 1 percent higher or more. IT and Pharma were largely flat.

Post heavy selloff in the first half of the series, a sharp comeback from lows was seen on the Nifty from 16400 to back above 17,200 levels. Nifty/BankNifty finished series with losses of 1.9/6.2 percent each.

Highlights for the December series were: a) FII’s continue to dump heavy in cash markets; b) BankNifty down around 20 percent from three-month high, while Nifty IT at life high levels; c) India VIX ended near 16 mark as traders await earnings for next directional cues; d) BankNifty down over 5 percent on back to back series to remain volatile.

Rollovers for Nifty/Bank‐Nifty stood at 78 percent (1.04cr shrs)/84 percent (24lakh shrs) vs 83 percent (1.09cr shrs)/84 percent (23.7lakh shrs) previous month, roll cost stood near 50 points for Nifty, Market-wide rolls stood at 91 per cent vs 94 per cent previous month.

Options volumes hint at comparatively lower trading band +/‐600 points from 17200 at the money (ATM) mark. We expect 17600 to 16700 as trading range for Nifty. Sector churn is key; IT stocks showing relative strength and banking stocks continue to drag.