NIFTY futures opened Friday on higher by approx 30 points @ 5475 which was in line with the positive closing from US markets and global cues. It was almost the intraday high point of the day and continuously melted down from there as the session progressed, making an intraday low of 5428. Nifty futures closed the session @ 5444.
Last week, the markets continued to march upwards for the third straight week. Healthy corporate earnings and steady inflows from Foreign Institutional Investors (FII) boosted the sentiment. However, global events have kept a check on the upside so far. As a result of this, the Sensex has gained 670 points in the last three weeks. The index is now around the higher end of the bollinger band on weekly charts, that is, near 18,300. Hence, we may remain cautious for early signs of weakness around these levels. On the downside, the index may decline to 17,430-16,950 in the coming weeks. This week, the Sensex may seek support around 17,900.
On the upside Nifty futures seems to find the selling pressure emerging at 5480 level and a break of this level will take the market to a next crucial zone of 5550–5600. On the down side the level of 5350 seems to be acting as a s major support zone. Nifty futures will probably trade in a range of 5350 – 5480 area for some time.
We may see increased volatility given the central bank’s policy meet and Reliance results on July 27, followed by the derivatives expiry on Thursday. RBI is expected to raise the cash reserve ratio by 25 basis points which is also factored in. Any raise above than 25 bps will negate the markets, otherwise, 25 bps raise or zero will give some relief to market participants.
From the OI Chart we can see that in July Series maximum addition of open interest on the calls front is existent at strike price of 5500 indicating it as Resistance on the upside whereas on the put options front we have seen addition of open interest at strike price of 5400 indicating it as immediate support on the downside.
FOR TODAY: SGX Nifty is trading around 5456,50 (+ 12 points) indicates Nifty may open in green. Asian markets are trading in green (a range 0.5-1%). Global markets were not too bad at this moment. Results of stress results have also some good impact in stock markets.
INDIANBANK (251.85) : BUY ABOVE 251 Tgt. 257 SL 247
TITAN (2769.70) : BUY ABOVE 2770 Tgt. 2810 SL 2740
NIFTY (5444) : Long position may be taken in support zone around 5428 with the SL of 5395, for the likely target of 5465/5490.
Stock of the Week:: Stock of the Week: ICICIBANK
Closing price: 913
Recommendation: Buy if closes above 922
Target: 982
Stop Loss: closing below 900
Buy TATAMOTORS FUT abvoe 847 with strict stoploss of 837 for a target of 857-865
I may go short for Nifty future around 5481 or go long around 5414-5417, whichever comes earlier.
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