Markets marched ahead on the back of supportive global cues to close higher by a percent. Sensex gained 180 points to close at 17651 while Nifty ended at 5296, up 55 points. BSE Mid-cap and Small-cap indices gained 0.9% and 0.6% respectively. Sparked by recent hike in fuel prices, Fuel inflation for the week ended June 26th jumped to 18.02% versus 12.90% for the previous week. Food inflation stood at 12.63% as against 12.92% for the week ago while Primary article inflation rose to 16.08% from 14.75% a week ago.
However, Nifty could not hold on to the morning's gains and finally NF closed at 5305 at 3.30 pm (actuall closing at 5309.45 after market settlement). Thursday's trading has resulted in to a shooting star kind of doji candle, which normally indicates a reversal or price rejection at the higher levels. Therefore, Thursday's market action has failed to instill the confidence of the bulls. The Nifty future may face a strong resistance above/around 5364/5398 level.
FOR TODAY: European market as well as US market closed green yesterday, SGX Nifty showing around 15 points up, flat but green Asian markets indicates that Nifty also open flat to positive side. But as indicated probably it will give up some of its yesterday's gain also.
NF remaining above its weekly resistance, the counter may move further up to 5344/5360 once it trades and remains above 5322.75. Short term support for the NF exists at 5300 which if breached decisively then NF may slide to 5269/5245.
Watch Aban, IFCI, CESC.
My strategy will be around 5344 (if I get) I will short Nifty future with stoploss 5360
