Nifty recouped previous day's losses and closed just one point short of the 5,400 level led by technology, metal, oil & gas, auto, cement and realty companies' shares. ICICI Bank, L&T and ITC were the other gainers.
The market opened higher yesterday on the back of strong global cues and remained firm in early trades and hit day’s high at noon. The market however failed to sustain at higher levels and slipped back but on sustained buying in frontline stocks moved up again in late afternoon trades and closed in the positive with substantial gains.
As predicted earlier, it was the seventh consecutive session that the markets witnessed consolidation.
The next direction of the market still seems to be tricky. Most heavy weights in the Nifty index are trading sideways. Now a days the markets are also trading with the historical valuations corresponding to previous normal bull markets highs. Hence the sluggish sideways trading. However, the markets still seem to be set for the next decisive move in the next few trading days.
From FNO side, Nifty future prices ended in red terrain along with overall addition of open interest and increase in the cost of carry, this is an indication of some longs being built up at lower levels. Nifty Jul futures add 1.5 lakh shares in Open Int, at 4-point discount. Nifty Aug futures add 3.3 lakh shares in Open Int, at 4-point premium. Nifty Open Int PCR at 1.41 versus 1.42. From option side, it seems that Nifty may end this expiry (July series) above 5300 but below 5500 (still six trading days!).
Our market is still dancing with Global cues. US markets closed in red though European markets ended in green, Fed Chairman Bernanke, made his semiannual monetary policy report to the Senate Banking Committee yesterday. Bernanke spoke of continued uncertainty in the economy and made note of the Fed's preparations to take more policy actions as needed. The comments reflected the downgraded economic outlook that was communicated in the FOMC Minutes this week and results loosing all its earlier gains by US markets.
In the currency market on Wednesday, the dollar index, which measures the strength of the dollar against a basket of six other currencies rose by 0.6%. Crude oil prices ended lower on Wednesday.
FOR TODAY: I am expecting a fall today and probably breached 5360 level on the downside. Today, volatility may be seen, SGX Nifty is down and currently (at the time of posting) trading at 5375 also indicates a gap down opening. If and only if, Nifty future brached 5355-5360 level on the downside, we may see 5340 and 5320 level today itself.
My USB device data card is not working properly and still I am facing problem. However, if any trade during trading hour, I'll try post in comments section.
ALWAYS TRADE WITH STOPLOSS. TRADE LIGHT, BETTER AVOID TO CARRY ANY OVERNIGHT POSITION FOR SOME DAYS THOUGH I AM STILL HOLDING 5400PE TAKEN 4-5 DAYS BACK.
