During the course of the day it tested 5010 on the downside and finally
bounced back to close flat. Stock specific activity was seen throughout the
trading session
n Market wide open interest is seen at Rs. 1,11,625 cr. Nifty futures have
seen marginal shed in open interest in the current series on account of
rollover activity.
n Nifty remains in corrective mode below 5075. On the downside support is
seen at 4930/4950. Sustain above 5075 is expected to invite significant
short covering. Medium term trend for the index remains positive for
5200 on the higher side.
n Reliance remains weak below 2160 for 2060 on the downside. Cairn also
remains weak at current levels. Capital goods major remain BHEL weak
below 2300. Siemens is remains weak below 280.
n Metal majors are expected to test higher levels in the near term led by
Tata Steel and Hindalco. Tata Steel is expected to test 552 levels while
Hindalco is expected to test 141/151 on the higher side.
n Nifty OI concentration is seen at 5100 call and 4800 put options. Put writing
is seen at 4800 levels. In case of call options no significant writing is
seen. PCROI remains significantly higher at 1.75 indicating comfort by put
writers.
OUTLOOK
n Nifty is expected to test lower levels of 4950 in the near term. Consolidation
is expected with a negative bias. Medium term trend for the index
remains positive with near term target seen at 5200.
n Tata Steel and Hindalco are expected to test higher levels of 550 and 141
respectively. Capital goods majors are expected to consolidate with a
negative bias before resuming their up-trend. Realty majors remain in
consolidation with buying advised at current levels.
