On Wednesday stocks seesawed through out the day before closing to neutral (unchanged) levels at 5042/16912.
Generally the market closes to almost unchanged levels before the major event (Fed Meet) that we observed on
Wednesday. However, it brings huge move on either side on the next day and so we have to be prepared for the same
on Thursday.
For the day we will focus on 5070/16995 and 5000/16770 levels to design our trading strategy. In case the market
sustains above or below these given levels in the second half then we may come across the significant move in the
same direction. Above the level 5070/16995 the market may jump up to 5125/17200 with a major hurdle at 5090/
17050. However, if it opens lower and sustains below the level 5000/16770 then it may fall to the level 4935/16580
with a major support at 4975/16660. Around 4935/16580 levels investors can invest in select outperforming sectors like
Pharmaceutical, Tech and FMCG. For the day our advice is to trade as per levels.
Market wide open interest is seen at Rs. 1,14,998 cr. Nifty witnessed significant
volatility within the range of 5000-5070. Selling was seen at
higher levels.
n Nifty remains in negative territory below 5075. Below 5125 expect the
index to test 4950-4970. In the near term nifty is expected to bounce to
5080-5100 levels from where selling is expected. Termination of this corrective
down-move is expected at 4950 levels.
n Reliance has significant support at 1050 levels; expect some consolidation
at current levels before resumption of uptrend. Cairn remains in up trend
above 255; correction should be used to accumulate in the cash segment.
GAIL remains in medium term up trend.
n Metal majors trade above major support levels. Tata Steel remains positive
above 540 on closing basis. SAIL remains positive above 200. Weakness
expected in Real estate majors led by DLF and HDIL. Further weakness
expected in banking stocks. PNB trades weak below 925.
n Nifty OI concentration is seen at 5000 put and 5200 call options. Call writing
is seen at 5150-5200 levels while in case of put options writing is seen
at 4950-5000 levels. Put options have seen significant profit booking in
the previous two trading sessions.
