Market wide open interest is seen at Rs.1,18,574 cr. Nifty futures have
seen marginal shed in open interest with futures trading at a discount of
7 points.
n Nifty has again closed near its turnaround level of 5230. Trend remains
positive above 5175. We advise holding long positions as long as 5175 is
held on to. On the higher call writing is seen at 5350-5400 indicating
possible upsides upto the mentioned levels. Put writing is seen at 5200
levels indicating possible buying support around the same.
n Reliance Capital is expected to test higher levels of 980 as it remains
strong above 880. IDFC remains positive above 140 for a medium term
target of 215; accumulation is advised in the same. Metal majors are
expected to gain. Tata Steel and Bhusan Steel is expected to gain in the
near term.
n ICICI Bank is expected to test 895 levels in the near term; profit booking is
expected around the same. Real Estate majors remain under pressure as
they remain weak.
n Nifty options OI concentration is seen at 5300 call and 5200 put options.
Expect a range bound expiry with significant volatility within the range
seen marginal shed in open interest with futures trading at a discount of
7 points.
n Nifty has again closed near its turnaround level of 5230. Trend remains
positive above 5175. We advise holding long positions as long as 5175 is
held on to. On the higher call writing is seen at 5350-5400 indicating
possible upsides upto the mentioned levels. Put writing is seen at 5200
levels indicating possible buying support around the same.
n Reliance Capital is expected to test higher levels of 980 as it remains
strong above 880. IDFC remains positive above 140 for a medium term
target of 215; accumulation is advised in the same. Metal majors are
expected to gain. Tata Steel and Bhusan Steel is expected to gain in the
near term.
n ICICI Bank is expected to test 895 levels in the near term; profit booking is
expected around the same. Real Estate majors remain under pressure as
they remain weak.
n Nifty options OI concentration is seen at 5300 call and 5200 put options.
Expect a range bound expiry with significant volatility within the range
The Dollar Index is the only cause of concern for equities as the chart of Dollar Index is exhibiting further up move to
80 levels from current 78 levels. It will minimize the fresh inflows into emerging markets in the near term and may
lead to profit taking in equities world wide.
In our weekly updates, we mentioned that the market has resumed one more series of higher bottom at 5170/5150,
(17230) which is a positive signal for the market. However, since then the market has not formed a new (higher) high
above the level 5310/17790 that may dampen the sentiment if it breaks 5150/17230 level on a closing basis. Today in
case the market survives above it then we may expect mild recovery to 5230/17500 levels but in case the market
sustains above 5245/17560 levels in the second half of the trading session then it will probably reverse the current
weakness in the market.
Nifty Strategy: As the market is still into the range the strategy should be to buy around 5185/5180 with a tight stop
loss below 5150. In case the market sustains below the level 5150 in the second half of the trading session then the
strategy should be to sell with a stop loss above 5200. On the higher side short term traders can go short around
5230/35 levels with a tight stop loss above 5246 for the day. Expect bullish momentum above 5245 level in the second
half of the trading session. (Spot levels)
