The market has continued its pull back on Tuesday with a day's low of 4735 and it has even respected the level of 4810
as per technical analysis towards the end. It closed just below the continuation gap which is at 4827. Above the level
of 4800, the market has several hurdles and may be tough for bull traders to trade. They may use gap up opening as
to take profits on trading positions and may react themselves in the second half of the trading session.
For the day we will keep a watch on 4840/16140 level and sustenance of the market above the same in the second half
of the trading session will lead to one more rally up to 4880/4890. Expect weakness in the market if it sustains below
the level 4755 in the second half of the trading session as it may push the market to previous lows 4670. Trade with
strict stop losses at each level as the coming trend seems to be sharper than expectations.
Market wide open interest is seen at Rs. 1,14,735 cr. Nifty futures have
seen significant closure in open interest with premium reducing to near
flat.
n Nifty continues to trade in negative territory below 4850 levels hence
overall aggression on the long side should be kept low. The recent low
made at 4760 remains significant with buying advised at 4700-4750 levels
for initial target of 4850. Immediate resistance for the index is seen at
4830.
n Banking majors are expected to trade with a positive bias in the near
term led by SBIN and ICICI Bank. RelInfra is expected to test 1115 levels in
the near term. Bharti is expected to consolidate around 312 levels with
buying advised at lower levels for a higher target of 344. We expect
metal majors to under perform in the near term. Reliance too is expected
to remain under selling pressure.
n Nifty OI concentration is seen at 4700 put and 5000 call options. Call
writing is seen at 5000 levels. In case of put options writing aggression is
seen at 4600 options
