Declines were broad based, with 30 out of 30 Sensex stocks sliding, led by capital goods, Infrastructure, IT and the
Bank stocks. The market has turned the medium term trend down and entered into negative territory below the level
5150 on a closing basis. It was mandatory for bulls to exit or at least reduce trading positions below the level 5150
"before" of searching for next support level.
The break of higher top and higher bottom series will certainly invite further pain and in that case the market may
even fall to the lower boundary 4920/4940 (16570) with a minor support at 5060 and 5030 (16860) levels.
Bargain hunting buying (with a short term view) is advisable only around 4950/16570 levels as these are the important
supports for the market on weekly basis.
Buying on recoveries (not it advance) is advisable only if indices reverses from 5030/16860 levels. Keep a tight stop loss
below the level 5000 and keep a target of 5085 and 5110. The area between 5120 and 5140 should be selling area for
short sellers with a tight stop loss above 5175 levels. (Spot levels).
Market wide open interest is seen at Rs. 1,23,573 cr. Nifty futures have
seen marginal shed in open interest with discount seen at 10 points.
n Nifty remains in negative territory below 5220. The current movement is
expected to be last leg of the corrective down move. We expect this
correction to terminate around 5000 levels. Expect consolidation at lower
levels.
n Metal majors are expected to witness further downside. Breach of 630
will invite selling in Tata Steel. Banks and Realty majors are expected to
witness further selling in the near term.
n Auto majors trade with a positive bias led by Maruti and M&M; buying is
expected at lower levels. Pharma stocks are expected to trade with a
positive bias with accumulation at lower levels.
n Nifty options OI concentration is seen at 5300 call and 5000 put options.
Significant activity is seen in the options segment. In the Feb Series put
writing is seen at 4950 levels while call writing is seen at 5450-5500
levels.
