Market wide open interest is seen at Rs. 1,12,295 Crs. Nifty futures
volumes were dull on Friday with addition of 3.30 lakh shares seen.
n Nifty Jan turnaround is seen at 5220 levels. Sustain above the same
would be positive for the index as that would indicate the strength of
buyers in the market. Above 5285, short covering can be expected.
n Banking stocks could witness some short-covering in case Nifty manages
to sustain above 5285. SBIN would be our preferred pick for going long.
n Cement stocks could remain positive in the current week led by
AMBUJACEM and ACC. From the telecom space RCOM looks to positive
for a target of 210.
n Nifty options OI concentration is seen at 5300 call and 5200 put options.
IV's have decreased to around 17-18% which is very low indicating
markets to continue sideways action in the current series.
The week past and expectedvolumes were dull on Friday with addition of 3.30 lakh shares seen.
n Nifty Jan turnaround is seen at 5220 levels. Sustain above the same
would be positive for the index as that would indicate the strength of
buyers in the market. Above 5285, short covering can be expected.
n Banking stocks could witness some short-covering in case Nifty manages
to sustain above 5285. SBIN would be our preferred pick for going long.
n Cement stocks could remain positive in the current week led by
AMBUJACEM and ACC. From the telecom space RCOM looks to positive
for a target of 210.
n Nifty options OI concentration is seen at 5300 call and 5200 put options.
IV's have decreased to around 17-18% which is very low indicating
markets to continue sideways action in the current series.
Technically speaking: In the last week the market sustained above the multi support level 5160/5170 (earlier it was
resistance) and bounce back to the resistance level 5280/17640. We may call it as a tight range activity because the
market has not gone beyond technical support and resistance levels.
However, we can say that the market has added one more, "higher bottom" into the series of higher top higher bottom
at 5170/17270 levels. These levels may act as a important support for the market in the medium term and dismissal of the
same on "closing basis" may weaken the sentiment substantially. In that case the fall may extend to 5050/5030 (16840)
levels.
On the higher side the level 5280/17640 may act as a crucial resistance for the market and sustenance above the same
may lift the market into new territory to 5400/18000 levels.
For the day the level of 5235/30 (17500) may act as a initial support level for the market and in case the market sustains
below the same in the second half then the level of 5190/5170 (17370/17270) is not ruled out. In case the market refuses
to trade below 5230/17500 or if it recovers from these levels then it will be an opportunity to trade long with an upside
target 5280 and 5310 (17640/17800).
Sector specific: In the last week the activity was mainly into Reality, Power, second line Infrastructure stocks and
technology. The momentum remained dull in Banking and Auto stocks (especially in Maruti, Hero Honda, ICICI Bank and
SBIN). In the current week we are expecting momentum in Pharma, Reality and Sugar stocks (especially in Cipla, Lupin, DLF,
HDIL, Renuka and Bajaj Hind. We are not concentratin,g much on frontline IT stocks due to completion of upward targets
on most of them except (TCS).
In current week the Banking sector may do well if frontline stocks like SBIN and ICICI Banks holds above their recent
bottoms. However, buying is advisable on recoveries into the same. The activity is still missing in Infra stocks however,
capital goods and power stocks may do well (especially Tata Power).
