Yesterday Nifty opened on a shaky note and traded in the negative territory throughout the day. After opening at 5505, Nifty continuously fell to make a low of 5452.75. At the end of day it closed at 5462.35. It had a net loss of 42.75 points or 0.78% over the previous day’s close. The selling was witnessed across the board. However, Realty, Auto and Health care pack lead to a decline.
Yesterday Nifty broke and sustained below it’s crucial support 5468. So the negative movement of Nifty may continue to 5400. In short term the resistance and support level of Nifty lies at 5550 and 5400. If Nifty breaks 5400, it may further go down to 5350 and then 5300. However a breach of 5550 would open the gate for 5600.
Volatility may remain high ahead of the expiry of the near-month August 2010 derivatives contracts tomorrow, 26 August 2010. NSE's Volatility Index, India VIX, jumped 11.36% to 18.92. The index had lost 0.88% to 16.99 on Tuesday, 24 August 2010. India VIX is calculated based on the S&P CNX Nifty options prices.
Nifty August 2010 futures were at 5464.95, at a slight premium over spot closing of 5462.35. Nifty September 2010 futures were at 5469.30, at a premium of 6.95 points over spot closing of 5462.35. The near-month August 2010 derivatives contracts expire on Thursday, 26 August 2010.
FOR TODAY: On an intra-day basis Nifty has a support at 5440 and is likely to face a stiff resistance near 5490. If it breaks 5490, it may further go down to 5415 and then 5400. However, if Nifty is able to sustain above 5490, intraday trend will be positive and the level of 5520-5550 would become the next target.
BE CAUTIOUS FOR EXPIRY DAY. VOLATILITY MAY BE SEEN.
