On Tuesday the market has broken an important support at 5080/17025 level that has triggered weakness in the
market and forced to close below the major support 5030/16920 level. This may lead one more round of weakness in
coming few days because it's a break down out of distribution zone, which was between 5080 and 5180 levels. The
next major support for the market exists at 4925/4935 (16580/16530) levels.
As per overall formation it seems that it will be tough for the market to recapture the levels of 5080/90 (17025/17060)
in the near term at least on the closing basis. If it happens then only we can say that the market has absorbed the
bearishness. Any pull back towards the level 5090/17060 will be an opportunity to sell short with a tight stop loss
above it. However, any steep sell off at the beginning to the levels 4935/4925 may offer short term traders an
opportunity to trade long with a tight stop loss below the level 4900 with a short term prospect.
Market wide open interest is seen at Rs. 1,17,316 cr. Futures trade at a
marginal discount as compared to previous trading sessions premium.
Marginal addition is seen in stock futures.
n Nifty remains in negative territory below 5075. Below 5125 expect the
index to test 4950-4970.
n Metal majors trade above major support levels. Tata Steel remains positive
above 540 on closing basis. SAIL remains positive above 200.
n Tech majors trade with a positive bias. Infosys has seen significant addition
in open interest at 2480. Sustain above the same can push the stock
to 2565. Mphasis and TECHM are expected to consolidate at current levels.
n Weakness expected in Real estate majors led by DLF and HDIL. Further
weakness expected in banking stocks. PNB trades weak below 925.
n Nifty options concentration seen at 5200 call and 5000 put options. Call
writing at 5150-5200 levels led to selling. In case of put options writing
seen at 4950-5000 levels though positions remain low as compared to call
options. IV's remain on the lower side.
