Nifty consolidated in a narrow rage for the third consecutive trading session.
Stock specific action was seen with low volatility.
n Market wide open interest is seen at Rs. 1,14,081 cr. Fresh addition is
seen in the Dec series with futures trading at a marginal premium.
n Nifty is expected to continue to consolidate in the range of 5010-5080.
Any break out above 5080 is expected to push the index to 5150-5200
levels. Put writing is expected to provide support at lower levels.
n Capital goods stocks have under performed in the recent past. BHEL and
LT are expected to gain momentum in the near term. Metal majors are
expected to trade with a positive bias. Tata Steel remains positive above
527 on the higher side 575/600 is expected. Unitech and DLF continue to
consolidate in a narrow range; buying is advised at current levels with
recent lows as trend deciding levels.
n From the momentum space ABAN is expected to test 1600-1700 levels in
the medium term with buying expected at lower levels. IDFC remains in
an up-trend with a target of 200 as it remains positive above 160.
n Nifty options concentration is seen at 4800 put and 5100 call option. Put
writing is seen at 4800-4850 levels while insignificant damage is seen in
call options. Put call ratio at 1.75 levels indicates comfort by put writers.
OUTLOOK
n Nifty is expected to consolidate in a narrow range of 4950-5080. Medium
term trend remains positive for 5200-5200 on the higher side. Immediate
support is seen at 4950.
n Metal majors are expected to trade with a positive bias. Capital goods
have under performed in the recent past and are expected to gain momentum.
Realty majors are expected to consolidate in the near term with
buying expected at lower levels.
On Wednesday the market remained in a very narrow range and failed to breach 5075 or 5010 decisively on either
side. As the market has narrowed down the trading range, it will result into major activity on either side. While
looking at intraday charts we can say that it will favor bears in the short term.
For the day initially the level of 5040/16950 may act as a crucial support for the market failure to hold these levels will
push the market to 5010/16880 levels. Sustenance of the market below the same in the second half will extend the
short term weakness to the level 4960/16700. In the worst case the market may even fall up to 4870/16410 levels.
However, these levels will offer excellent fresh trading/positional buy opportunity in the market. On the higher side
the level of 5085/5075 may act as major hurdle area and sustenance above 5085/17110 will lift the market towards
5125/5130 (17250) levels.
