Nifty was just not able to negotiate the upside on Wednesday and the lower end of the channel at 5014.65 became a huge resistance. The session started with negative cues from the US markets coupled with Germany banning naked short sales. The Germany move most analysts believe could backfire as it would drain funds away from the euro zone and increase risk aversion.
Global concerns weighed heavily on Indian market too which closed with deep cuts and the Nifty closed below its 200 DMA for the first time since April 2009. News of Germany's move to ban some naked shorting led to a major fall and all sectoral indices ended in the red. Sensex shut shop at 16408, down 467 points and Nifty at 4919, down 146 points from the previous close.
The fututres closed at 4925 for the day. The futures have some support at the 4900–4910 area from the 50 week moving average at 4910. The next support for the futures are at the 4675–4700 levels which are the February 2010 lows.
FOR INTRADAY:: A minor support is around 4901 and then at 4880. If breaches we may see even 4800 level today itself. On the upside, resistance is at 5014.65. If breakout decisively, we may see 5088 level within a day or two.
Since volatility has also increased, better avoid trading on intraday basis OR till the dust settles. Otherwise, you may be trapped on the wrong foot.
BUY NIFTY 5000CE ABOVE/AROUND 33.10 WITH STRICT STOPLOSS OF 23.55 FOR A TARGET OF 55-70
BUY NIFTY 5000PE ABOVE 107.60 WITH STRICT STOPLOSS OF 88.85 FOR A TARGET OF 130-150
BUY ICICIBANK 840CA ABOVE/AROUND 14.60 WITH STRICT STOPLOSS OF 10.35 FOR A TARGET OF 18.85-22.15
BUY SUZLON 65CA AROUND 0.35 WITH STOPLOSS OF 0.15 FOR A TARGET OF 0.65-0.75
BUY TATASTEEL 540CA ABOVE/AROUND 4.80 WITH STRICT STOPLOSS OF 3.10 FOR A TARGET OF 6.35-8.25-9.10
Disclaimer:: I have some position in nifty future and IFCI 52.50CA. I may have some interest for these above recomendations. All the above mentioned calls are subject to the market conditions.
Intraday trading is very risky. Traders/Investors are advised to trade as per their risk taking apetite.
