The Nifty futures
opened lower on Wednesday and traded positively till it reached the last days close of 5268 in the initial hours. Initially, it corrected 20 points and rallied to 5299. It again corrected some 30 points to reach 5268. At around 2.40 PM, the European markets rallied suddenly on the back of a news release that the Banks have utilised lesser refinance from the ECB than expected. The Nifty futures too rallied strongly in tandem with the European markets and finally closed at 5319. Another cause might have been helped the market by the half yearly Institutional Net Asset Value (NAV) management too. The current monthly close is highest in the past 30 months indicating that the strong upward momentum will continue in the coming months. A (almost) Bullish Engulfing Candle is seen on the daily chart of Nifty Futures indicating a strong upward momentum. Nifty Futures needs to surpass 5350 for an upward breakout of the Falling Channel and to establish a fresh uptrend up until the next resistance zone of 5410 - 5450. The current uptrend is supported by volumes seen in the past two months and Nifty Futures may continue is northward journey discounting the overbought RSI. The breadth of the market was positive as out of 1371 stocks traded in NSE segment, 796 stocks advanced, 567 stocks declined where as 8 stocks remained unchanged. Among the sectoral indices, almost all sector indices like FMCG, Oil&Gas and Auto closed in positive territory expect IT sector which gave marginal negative close. Whatever the immediate move, the Indian market remains as one of the strongest markets in the world at present. The rally in the European markets fizzled out by the close and the markets there closed marginally positive with minor gains. US market also closed yesterday in red down around 1% each in DOW and NASDAQ.
Volatility Index fell by 2.76% from 20.64 to 20.07
Nifty Call options of strike 5500 added open interest by 9750 lots while Put options of strike 5100 had a build up of 18642 lots. Nifty Put Call ratio (PCR) stands at 1.30
SGX Nifty is trading around 5270, down 48 points suggests we may open in red.
AT ANYTIME FII MAY OFFLOAD THEIR STOCKS. SO CAUTION NEEDED FOR GOING LONGS .
TODAY'S IDEA:: The intraday support levels for Nifty Futures are at 5300 and 5270 where as resistance levels are at 5350 and 5370.
On an intra-day basis we may go long at 5280 till near 5330. OR if it breaks 5280, we may go short for 5260 and 5220. However, a move above 5330 we may see the Nifty going higher to 5350 and then 5370.
BUY BANKNIFTY FUT ABOVE 9520 WITH A STRICT STOPLOSS OF 9480 FOR 9560 AND 9620
BUY RELIANCE FUT ABOVE 1100 WITH A STRICT STOPLOSS OF 1087 FOR 1114 AND 1134
BUY HCC AROUND 120 WITH A STRICT STOPLOSS OF 118 FOR 128
BUY SUZLON AROUND 57.40 WITH A STRICT STOPLOSS OF 55.80 FOR 61 AND 64
BUY IFCI ABOVE 57 WITH A STRICT STOPLOSS OF 52 FOR 60 AND 64
NOTE: DON'T TRADE WITHOUT STOPLOSS.BUY RELIANCE FUT ABOVE 1100 WITH A STRICT STOPLOSS OF 1087 FOR 1114 AND 1134
BUY HCC AROUND 120 WITH A STRICT STOPLOSS OF 118 FOR 128
BUY SUZLON AROUND 57.40 WITH A STRICT STOPLOSS OF 55.80 FOR 61 AND 64
BUY IFCI ABOVE 57 WITH A STRICT STOPLOSS OF 52 FOR 60 AND 64
