Market wide open interest is seen at Rs. 1,34,464 cr. Nifty futures rollover
remains on the lower side as we approach end of the current series.
n Nifty remains in downtrend below 5270. Immediate support for the index
is seen at 5197 below which it can test 5165/5115 in the near term. One
day of consolidation is possible after the volatility seen in the previous
trading session.
n ACC remains in up-trend above 950 for 1045 on the higher side. Metal
majors continue to remain positive for the medium term. IT and mid-cap
IT majors are expected to do well. Polaris is expected to test 178/193 in
the near term. Capital goods majors are expected to trade with a
negative bias in the near term. Bharti is expected to face resistance at
320 levels.
The market opened lower on the back of weak global cues and rate hike. However, it recovered back quickly to the
major hurdle 5240 may be due to short covering or fresh initiation of trading longs. As we mentioned in our update,
it failed to sustain above the same and gradually returned back to 5200 levels towards the end.
As per RSI oscillator, the negative divergence is missing on daily charts that may pull the market to new highs as soon
as the market will correct to its major levels and probably the level 5150/5130 seems achievable on the sustenance of
the market below the level 5240/17510. In case the market opens higher but fails to reach 5240/17510 then we may
expect weakness in the market.
The strategy should be to buy only on recoveries from 5150/5140 levels with a trading point of view. The reason behind
the same is the correction will remain short lived and that may form a weaker base with which traders can only
trade. The correction may extend, if indices sustains below the level 5130/17150 in the second half of the trading session.
In that case the market may fall to 5060/40 (16870) levels and that will be a good base for the market and medium
term investors can park their funds around the same with an upside target 5300/5350 (17800/17900
