Strides Pharma Science Ltd falls as much as 5.2 percent to Rs 472.35, its lowest since August 24. The pharma company said its formulation facility in the southern Indian city of Bengaluru has been issued Form 483 with three observations after U.S. FDA’s inspection. The pharmaceutical company also said it believes observations are not material in nature. Strides Pharma stock posts biggest intraday fall since July 16. As of last close, stock is down 37.5 percent this year. Shares traded at Rs 492.60, losing Rs 5.60 in value, or by 1.12 percent at 1.02 pm. The BSE Sensex erased gains and traded lower at 37,263.06, slipping by 27.61 points, or 0.07 percent. The NSE Nifty50 traded in the green at 11,289.65, still up by 10.75 points, or by 0.10 percent.

Sugar stocks erased early morning gains after the Union cabine deferred decision on subsidy for sugar exports. Earlier, according to CNBCTV18, the proposal was to give subsidy on exports of 50 lakh tonnes of sugar at Rs 13.88 per quintal. Consequently, shares of Balrampur Chini Mills which surged nearly 4 percent to trade at Rs 88.10 earlier slipped to Rs 85.60, marginally up by 0.82 percent. Triveni Engineering cooled down to Rs 48, trading negative by 1.34 percent, after jumping 2.77 percent to Rs 50. Shree Renuka shares traded at Rs 15.70, slipping 7 percent from the day's high. Sakthi Sugars fell more than 8 percent from the day's high to trade lower by 2.17 percent at Rs 18. Dwarikesh Sugar gained by 4.64 percent to Rs 28.20. Dhampur Sugar rose 3 percent to Rs 141.25.

Asset management companies fall after market regulator, Securities and Exchange Board of India (Sebi), on Tuesday revised total expense ratio (TER) slab structure for mutual funds since its introduction in 1996. Reliance Nippon Life Asset Management Ltd falls as much as 8.96 percent to hit a life-low of Rs 194.50, while HDFC Asset Management Co. ltd slips up to 7.6 percent to Rs 1,419.50, its lowest ever. HDFC AMC shares traded at Rs 1,428, losing Rs 108.20 in value, or by 7.04 percent on the NSE at 11.05 am. Reliance Nippon Life Asset Management ltd shares traded at Rs 193.95, down by Rs 19.70, or by 9.22 percent. Benchmark indices traded positive. The NSE Nifty 50 traded at 11,309.40, rising by 30.50 points, or by 0.27 percent. The BSE Sensex traded at 37,361.87, higher by 71.20 points, or 0.19 percent.

Shares of TVS Motor Company ltd edged up by 0.17 percent to trade at Rs 593.70 at 10.50 am after the two-wheeler company entered into partnership with Torino Motors for Mexican market. Shares have traded between the opening high of Rs 599.70 and a low of Rs 589.55.

Equity indices traded positive after initial volatility as crude oil prices slipped and the Indian rupee recovered. The NSE Nift50 traded at 11,316.50, rising by 37.60 points, or 0.33 percent. The BSE Sensex also gained over 111 points, or 0.30 percent, to trade at 37,401.93.

FII’s have been sellers in the cash market and have net sold near Rs 1,000 crore in past 4 out of 6 sessions. However, going by the derivative market action 10,200- 10,250 mark should be the levels that the bulls will look to defend. And here is why:

PCR now sub 1.2: As seen in the last few months when the PCR has hit over 1.7 levels we brace for a correction as put writing has become too easy. And when it dips towards the 1.1 mark we see a bounce as call writing has become too easy.

 
Contra long calls: While the markets ended at day’s low on Tuesday, there were some contra long calls taken. For starters, no contraction was seen in the Nifty premium in the futures market as it held onto the 31 points premium. Contra long calls were taken by FII’s as they bought near 10,000 long contracts. FII’s added 5 longs for every 1 short position on Tuesday.

11200-1250 range important support levels: The recent low on the Nifty was 11,250, while maximum open interest was seen at 11,200 put. If all goes wrong there is cushion on the downside as the FII’s have bought far more puts than calls. In fact, on Tuesday, FII’s bought 23,000 put contracts.

Shares of Titan Company hit a six-month low of Rs 786.10 as brokerage CLSA Asia Pacific Markets has reportedly cut target price for its shares by over 31 percent and downgraded it to 'sell' from 'outperform'. CLSA has set a target price of Rs 720 for the shares. The brokerage said growth remains a concern after the company missed its guidance for the quarter ended June. Shares of Titan were among the worst performers on the Nifty 50. At 9.44 am, they traded over 1.8 percent lower at Rs 809.10.

Shares of steel companies rose on report that the US has exempted India from tariffs on steel and aluminium, albeit with certain conditions. The report said the US will exempt a certain percentage of exports from India, which may press for a complete waiver of tariffs going ahead. Sentiment was also aided by higher base metal prices that rose on hope of strong consumption in China because of a likely stimulus package for the country's infrastructure sector.

Shares of Jindal Steel & Power, JSW Steel, Hindustan Copper, Hindustan Zinc, Hindalco Industries, National Aluminium Co, Tata Steel, MOIL,  Welspun Corp, Steel Authority of India, NMDC, and Vedanta traded 0.4-4.4 percent higher. At 9.54 am, the Nifty Metal index was up 0.86 percent at 3679 points. Meanwhile, the BSE Sensex traded at 37,351.65, higher by 60.98 points, or 0.16 percent. The NSE Nifty50 below the 11,300 levels, trading at 11,289.90, up by 11 points, 0.10 percent.