Markets just levelled out a bit yesterday after two such good days. A consolidation was expected after a 5-6% rally within two and half days. A bit of resistance was also expected at 5,500 and that is what the market encountered. The 30-share BSE Sensex closed at 18,300.9, up just 27.10 points and the 50-share NSE Nifty settled at 5,481.70, up 0.7 points. The Mid-Cap and the Small-Cap stocks actually outperformed the Large Cap counters. The market breadth was positive but volumes were affected by the bank holiday.
Nifty future (February series) closed at 5485.25, at a Premium of 3.55 Point v/s Discount of 4.90 previous days. Overall (Marketwide) Open interest in value terms rose by Rs. 3,272 Cr or 2.13% to Rs. 1, 56,556 Cr while in Quantity terms OI went up by 1.80% to 255.29 Cr from 250.76 Cr shares.
Long Build up is seen in Stock futures where they added 2.85 Cr shares (1.49%) in OI, while derivative stocks saw average price rise of 0.43%. Long Build up is seen in BATAINDIA, IDEA, IRB, SUZLON, POLARIS and SUNTV to name a few.
Short Build up is seen in RECLTD and TATACHEM. On the lower side Nifty is likely to face strong support in the vicinity of 5400-5350 level, the level (5400) which consists of the highest OI (i.e. 114.03 lacs shares) among the Nifty put options.
On the other hand on the higher side Nifty is likely to face strong resistance in the vicinity of 5500-5550 level, the level (5600 which consists of the highest OI (i.e. 83.07 lacs shares) addition among the Nifty Call Options.
FOR TODAY: Above FNO data are being provided just to understand the market trend and price movement. Now the most wanted Nifty movement will be between 5400-5600 as per OI data.
EU and US markets closed in Green. However, Asian markets are trading mixed in this morning. SGX Nifty is trading at 5481, 13 points down (at 8 AM). Probably Nifty may open flat to negative zone. If Nifty spot trade above 5460, i.e., without breaking yesterday's low, will try to cover.
Strategy 1: Around 5460, buy 5500 CE with stoploss of Nifty spot below 5424
Strategy 2: Around 5425, buy 5500 CE with stoploss of Nifty spot below 5402
Strategy 3: Around 5515, buy 5600 CE with stoploss of Nifty spot below 5489
On the other side, around 5511, buy 5500 PE/5400 PE with stoploss of NIfty spot above 5519; and so on.
If you know/assume the Nifty level, trading will be easy.
"Confused what to Buy or what to Sell ? Check here for INTRADAY CALL"