On Wednesday, the Nifty futures opened with positive bias, and traded in a small range in the morning and tried to move towards its minor resistance at 5162. As it could not get much higher and due to a lower opening of the European markets and the figure for March IIP data at 13.5%, the futures traded lower. It broke the Tuesday’s low of 5122, which also coincided with the 100 DMA and recorded a low of 5088 for the day. However the futures did not break the low of 5080 which was recorded on Monday. As the trading progressed, the futures traded higher in step with the European markets and made the day’s high at 5174. The futures closed at 5150 for the day. Today, Nifty futures may test the resistance zone at the 5210–5215 levels (50 and 100 DMA). This resistance zone also coincides with the Monday’s high of 5208.
European stocks advanced on Wednesday on the back of strong banking results that boosted financial stocks and austerity measures announced by Spain. Dow and Nasdaq has made a decent profit on Wednesday. SGX Nifty is around +35 now.
Risk Takers can initiate long positions in Nifty Future for the targets of 5250 and 5300 from the current levels in this expiry, since heavy put writing has also been seen for 5000PE.
TODAY'S IDEA::
BUY NIFTY FUTURES ABOVE 5174 WITH STRICT STOPLOSS OF 5161 FOR A TARGET OF 5198 AND 5216;
SELL BELOW 5139 WITH A STRICT STOPLOSS OF 5148 FOR A TARGET OF 5106 AND 5083;
BUY RELIANCE ABOVE 1090 WITH A STRICT STOPLOSS OF 1082 FOR A TARGET OF 1097 AND 1106
BUY TCS ABOVE 765 WITH STRICT STOPLOSS OF 760 FOR A TARGET OF 769 AND 774;
SELL TCS BELOW 754 WITH STRICT STOPLOSS OF 760 FOR A TARGET OF 749
FOR OPTIONS, ONE CAN BUY 5200 CE PURELY ON INTRADAY BASIS. EXIT AND STOPLOSS WILL DEPEND ON THEM.
FOR LONG TERM, ONE CAN BUY BHARATI/IDEA/NEYVELI LIGNITE/REC IN SMALL QUANTITY.
Disclaimer: I have no position. Maybe I will trade on intraday basis. Traders/Investors are advised to trade as per their risk taking apetite.
