Nifty continues to consolidate in the narrow range of 5050-5150. Volumes
remain on the lower side with stock specific action witnessed. Focus
has shifted to the cash segment.
n Market wide open interest is seen at Rs. 1,10,528 cr. Nifty futures trade
at a premium of 20 points with volumes seen on the lower side.
n Nifty Dec turnaround is seen at 5065 above which we remain in positive
territory. Range for the current series is seen at 4950-5250. Currently the
index remains in corrective movement hence the range bound movement.
Above 5070 we expect the index to test 5250 on the higher side.
n Pharma stocks are expected to do well in the near term led by Ranbaxy
and Biocon. GAIL remains in an uptrend for higher targets of 450.
n Nifty OI concentration is seen at 5000 put and 5200 call options. IV's remain
on the lower side as participants expect the range of 4950-5250 to
hold good for the near term.
OUTLOOK
n Nifty Dec turnaround is seen at 5065 levels; above the mentioned level
the index trades with a positive bias. On the higher side call writing at
5200 levels is indicative on limited upsides. We advice holding long positions
above 5060 for 5250.
n We remain positive on the IT and Pharma space in the near term. GAIL is
expected to test 450 levels in the near term. Mid-cap stocks are expected
to witness action with significant upsides
