Nifty continued with the down trend and made a new low of 4851 on Friday with a gap-down opening. It witnessed the high volatile session, covering in the second half and ended with modest loss of 16 points. Nifty future is looking to continue it’s down trend for some more time and in the downside 4830 & 4770 are two key supports. Closing below 4770 could drag it till the lower levels of 4650 to 4660 in near term.
The FII withdrew (net sellers for the entire week) about 5245 crores though DIIs bought around 2300 crores in the last week. The reasons behind FII's behaviour are mainly due to Dollar Index (shooting up), ULIP mess (lowering domestic funds) and global crisis. On the otherside, we have some good news like 3G auction which gives 70000 crores to our Union Government and will pull down our fiscal deficit by around 70BBS. It will also result our Government borrowning that may reduce around 20%. In addition to this, monsoon starts in right time which assure good rainfall this year. Inflation muted and RBI will take a breath which results tightening in interest rates are not in question.
BOTH AMBANI BROTHERS HAVE BURIED THE HATCHET, DUMPED THE CONTENTIOUS NON-COMPETE AGREEMENT SIGNED IN 2006 AND AGREED ON EASY GAS DISTRIBUTION OUT OF THE COURT WHICH MAY PUSH RELIANCE INDUSTRIES (RIL) UP AND SINCE RIL IS HOLDING THE LION PORTION IN NIFTY SO AUTOMATICALLY NIFTY WILL BE UP.
IN ANY CASE, ITS BETTER TO AVOID ANY CARRY FORWARD POSITION SINCE MARKET MAY GO ANYWHERE AT PAR WITH GLOBAL CUES, AND DUE TO EXPIRY WEEK.
The FII withdrew (net sellers for the entire week) about 5245 crores though DIIs bought around 2300 crores in the last week. The reasons behind FII's behaviour are mainly due to Dollar Index (shooting up), ULIP mess (lowering domestic funds) and global crisis. On the otherside, we have some good news like 3G auction which gives 70000 crores to our Union Government and will pull down our fiscal deficit by around 70BBS. It will also result our Government borrowning that may reduce around 20%. In addition to this, monsoon starts in right time which assure good rainfall this year. Inflation muted and RBI will take a breath which results tightening in interest rates are not in question.
BOTH AMBANI BROTHERS HAVE BURIED THE HATCHET, DUMPED THE CONTENTIOUS NON-COMPETE AGREEMENT SIGNED IN 2006 AND AGREED ON EASY GAS DISTRIBUTION OUT OF THE COURT WHICH MAY PUSH RELIANCE INDUSTRIES (RIL) UP AND SINCE RIL IS HOLDING THE LION PORTION IN NIFTY SO AUTOMATICALLY NIFTY WILL BE UP.
IN ANY CASE, ITS BETTER TO AVOID ANY CARRY FORWARD POSITION SINCE MARKET MAY GO ANYWHERE AT PAR WITH GLOBAL CUES, AND DUE TO EXPIRY WEEK.
For the next week, support comes in at 4780-4820 band and resistance at 5050-5090. The expiry will be probably in between 4970-5030 (-/+15) since maximum OI has seen at 5000 (4900PE:: Sheds 1066600 Shares;). Due to positive divergence, we may even see 5120-5165 within this expiry.
Nifty now trade near by the edge of all supports. On Monday, we may expect a bounceback.
However, if nifty close below 4902, strong bearish trend will starts from here and we may see 4720. But actual bullish trend only happen if it close above 200DMA (4989). It may also act as a resistance in coming days.
INTRADAY CALL:: BUY NIFTY 5000 CE AROUND 35 WITH STRICT STOPLOSS OF 31 FOR A TARGET OF 50/55/60(WITHIN ONE OR TWO DAYS).
INTRADAY CALL:: BUY NIFTY 5000 CE AROUND 35 WITH STRICT STOPLOSS OF 31 FOR A TARGET OF 50/55/60(WITHIN ONE OR TWO DAYS).
BUY NIFTY 4900CE ABOVE 69 WITH STRICT STOPLOSS OF 59 FOR A TARGET OF 90/100.
BUY 4900PE(JUNE) AND HOLD.
BUY ICICIBANK 840CA AROUND/ABOVE 13 WITH STRICT STOPLOSS OF 10.80 FOR A TARGET OF 17/22.
BUY IFCI 50CA AROUND 1.60/1.65 WITH STRICT STOPLOSS OF 1.35 FOR A TARGET OF 2.60/3.
BUY RELIANCE 980CA ABOVE/AROUND 22 WITH STRICT STOPLOSS OF 19.35 FOR A TARGET OF 26/30 SL 19.00.
BUY TATAMOTORS 720CA ABOVE 12.40 WITH STRICT STOPLOSS OF 10 FOR A TARGET OF 17/20.
BUY TATASTEEL 500CA ABOVEAROUND 16.35 WITH STRICT STOPLOSS OF 13 FOR A TARGET OF 22/25.
BUY TATASTEEL 500PA ABOVE 5.70 WITH STRICT STOPLOSS OF 3.85 FOR A TARGET OF 10/14
Disclaimer:: I have no position as on date. I may have some vested interest whether markets go up or down. Intraday Trading specially option trading is very risky. It may wipe out all of your money within a single day or two. Traders/Investors are advised to trade as per their risk taking apetite.
For more, kindly visit "Jayfromstockmarketsinindia.blogspot.com" during trading hours.
BUY 4900PE(JUNE) AND HOLD.
BUY ICICIBANK 840CA AROUND/ABOVE 13 WITH STRICT STOPLOSS OF 10.80 FOR A TARGET OF 17/22.
BUY IFCI 50CA AROUND 1.60/1.65 WITH STRICT STOPLOSS OF 1.35 FOR A TARGET OF 2.60/3.
BUY RELIANCE 980CA ABOVE/AROUND 22 WITH STRICT STOPLOSS OF 19.35 FOR A TARGET OF 26/30 SL 19.00.
BUY TATAMOTORS 720CA ABOVE 12.40 WITH STRICT STOPLOSS OF 10 FOR A TARGET OF 17/20.
BUY TATASTEEL 500CA ABOVEAROUND 16.35 WITH STRICT STOPLOSS OF 13 FOR A TARGET OF 22/25.
BUY TATASTEEL 500PA ABOVE 5.70 WITH STRICT STOPLOSS OF 3.85 FOR A TARGET OF 10/14
Disclaimer:: I have no position as on date. I may have some vested interest whether markets go up or down. Intraday Trading specially option trading is very risky. It may wipe out all of your money within a single day or two. Traders/Investors are advised to trade as per their risk taking apetite.
For more, kindly visit "Jayfromstockmarketsinindia.blogspot.com" during trading hours.
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