"TRADING IDEA ON EXPIRY DAY, THURSDAY (24.06.2010)"

SELL AT EVERY PULL BACK FOR TODAY

Looks like the bulls have indeed run out of luck for now, though the overall sentiment remains positive. Given the subdued global backdrop, it is expected a soft opening for Indian bourses. The NSE Nifty might start the day below 5320/5300. Expect heightened volatility ahead of the F&O expiry today. The near-term trading band for Nifty is seen between 5200 and 5400.

On expiry day NIFTY is expected to trade above 5300 most of the time with 5292 as immediate support level, 5250 is a strong resistance while 5360 may act as an immediate resistance level. Traders are suggested to buy at dips. BANKING and REALITY may attract buying while IT and CAPITAL GOODS may face selling pressure.

SOME USEFUL DATA/INFORMATION::

* Nifty Futures closed 23 points higher at 5343 than its previous close of 5320.

* The level of 5300 provided support for Nifty and a 45 point bounce back was seen in intraday upto 5345.

* After a sustained rally now, Nifty Futures is expected to remain in a 200 point price band between 5400 and 5200 for some time.

* If Nifty breaches 5300 then the next support levels are at 5250 and 5200.

* Nifty needs to breach 5360 levels for the continuation of current uptrend and in this situation the resistance levels are placed at 5400 and 5460.

* The level of 5200 now can be treated as a revised stop loss for positional long trades as 5200 is a 38.2% retracement level of the current 440 point rally from 4937 to 5377.

* The earlier indication of weakening trend will be confirmed below 5090 which is the 62% retracement level support.

* The intermediate trend reversal level is placed at 4900 level on closing basis.

* The breadth of the market was strongly positive as out of 1363 stocks traded in NSE segment, 873 stocks advanced, 471 stocks declined where as 19 stocks remained unchanged.

* Among the sectoral indices, the buying was seen in Realty, Health Care and Technology sector stocks where as Capital Goods, Metals, Oil&Gas sector stocks closed in red.

* Overall Bulls hold 5300 well.

* YESTERDAY THE FIRST SIGNAL WAS SEEN THAT A FRESH CORRECTION WAVE FROM 5366 MAY START. FRIDAY TRADING WILL CONFIRM THIS.

FOR TODAY:: Nifty future’s projected high and low for TODAY is 5362.75 and 5314.85 (use this projection with other indicators). It now has immediate support at 5297-5296 and if breaks the zone with volume, intra slide towards 5250-5248 is also possible. Immediate strong resistance now comes from 5359-5378, crossover can target 5398. Crossover and close above 5398 – then different story alltogether. Expect volatility.

For calls, please visit the other blog.