The market opened to an unchanged level but due to failure to breach psychological level 5000 it collapsed towards
the end.
Monday's closing was nearer to major support area 4935/4925 (16570/530). These levels have supported the market
several times in the month of October and November. From here, we can expect one bounceback on the back of
positive global cues and it may last up to maximum 5000/16750 level. In case the market sustains above it in the
second half of the trading session then we may even expect the level of 5035/16870.
However, due to medium term weakness we can not expect the market to trade beyond the same (5035/16750). Fresh
short sellers may emerge around these levels with a positional view in mind or old pending long positions may come
under liquidation.
Our advice is to trade cautiously if it opens up with a huge gap. In case the market starts trading below the level
4925/16530 and sustains below it in the second half of the trading session then the levels of 4860/16350 seems
achievable.
Market wide open interest is seen at Rs. 1,18,386 cr. Nifty futures have
seen marginal shed in open interest with volumes seen at recent lows.
n Nifty Dec turnaround is seen at 5067 below which we remain in negative
territory. 4950 remains a significant support for the index. A bounce back
can be expected from the mentioned levels for 5000-5050 on the higher
side. For traders unless nifty sustain 5070 remains extremely important
for the sentiment to change.
n Private Banks have bounced from recent lows. ICICI and AXIS Bank are expected
to continue with gains. From the medium term perspective, SBIN
remains positive above 2050.
n Real Estate major HDIL remains strong above 332 for 380 on the higher
side. Selling is expected to continue in Capital goods majors. For the medium
term we remain positive on Ranbaxy, Biocon and GAIL; accumulation
on declines is advised.
n Nifty options OI concentration is seen at 5000-5100-5200 call options. Put
options have seen significant profit booking at lower levels. Put writing
support is seen at 4950 levels. A bounce back from the mentioned levels
would indicate initiation of an up-tren
