On Tuesday the market opened higher along with world's positive cues but failed to breach an important resistance
level at 5000. On Intraday basis the market has formed double bottom at 4965 levels that may act as an immediate
support for the market. In case the market trades below the same then we may see the retesting the levels 4940/4930
(16535). As the level has played crucial role in past two months we feel that unless the market closes below these
levels we can not turn further more bearish in the near term. Any recovery from these levels will be an opportunity to
create fresh trading long position with an upside target 5035/5065.
In case the market opens higher then again the level of 5000 and 5005 (16750) may act as a major hurdle for the
market and sustenance above it will lift the market to 5035 (16870) levels. Be cautious at 5035/16870 levels as it may
attract profit taking level in the first half of the trading session.
Market wide open interest is seen at Rest. 1, 19,422 cr. Volumes in nifty
futures remained significantly low as the index tested 5000 on the higher
side.
n Nifty Dec turnaround is seen at 5067 below which we remain in negative
territory. Put writing support is seen at 4900-5000 levels. We expect the
index to consolidate in the current range for some more time. Selling at
higher levels can be expected for target placed at 4920-4930 levels.
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.From the telecom space, Bart is expected to
test 332 in the near term.
n Real Estate major HDIL remains strong above 332 for 380 on the higher
side. 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 call and 4900 put options.
Put options have seen significant profit booking at lower levels. Put writing
support is seen in the range of 4900-5000. IV's remain significant low
at an average of 20. This indicates that market participants are not expecting
any significant movement in the current series.
