SHORT COVERING SEEN IN MARKET

Nifty has done a gap down opening on Wednesday morning following the international clues. An intraday low of 4990 occurred around 3:00 pm and Nifty returned to its higher note of 5062 level after that. Realty stocks suffered in this dip, LT ,  Sintex ,Suzlon  have made fresh 52 week’s low yesterday. Nifty has taken support from 5000 level, it is a crucial support for Nifty, closing below 5000 level may cause of more weakness, and Nifty may taste 4700 level again. Nifty 5000 strike rate put has huge short positions so far. Traders are seen to cover their shorts at this level. U.S market closed with further weakness on Wednesday night. Asian markets are trading with lower note. SGX Nifty is on 5015 level. Avoid opening new short positions on this level. Only trading in stocks is advised. 

NIFTY IS NEAR LOWER TRADING BAND

Nifty has not taken support from 5100 level and broken down below this level on Tuesday. New short positions were aggressively opened over 5100 level in Nifty. Nifty closed its intraday low level at 5054 after opening at 5153 level. Lower trading range is shifting to 4800 from 5000 level but Nifty 5000 strike rate put has biggest short position so far. Nifty has another support near 5000 traders may cover their short positions on this level. U.S. markets were flat on Tuesday’s session while Asian markets trading flat to negative. SGX Nifty is trading now at 5057 level almost flat. If Nifty close below 5000 level, Nifty may taste 4800 level in few trading days. New short positions may open in Sintex Industries at any rise in stock short term target is Rs 92.

5100 IS A SUPPORT FOR NIFTY

Following the negative trend, Nifty closed down 20 point yesterday. After the strong clues from international markets Nifty opened with higher note but could not sustain over 5200 level and Nifty washed out its earlier gain closed 5148 near an intraday low. Traders were comfortable to short sell 5200 strike rate call with huge volumes in Nifty option. Now 5200 and 5250 levels became the strong resistance for Nifty. Quarterly results had depressed the market sentiments and European markets clues affect the Indian market gains. Now Nifty is oversold in hourly charts and 5100 immediate support. U.S. markets closed in negative area and Asian markets are following the trend.SGX Nifty is trading 5123 level. Nifty may bounce from 5100 level in today’s session. If European markets support the positive sentiment, Nifty may buy near 5100 level with the strict stop loss of 5080 and target may 5200 for today only.

NIFTY MAY BOUNCE AFTER ITALY’ S NEWS

Nifty has closed at 5168 after tasting an intraday low 5142. Nifty has succeeded to close above 5150 level on Friday, a positive sentiment continued above this level. Nifty had not breached its support area on Friday’s session amid the European bad news. 5200 strike rate call has been short sold while 5100 strike rate put had a lot of action on Friday, it confirmed traders are positive above 5100 level and 5200 may act as a resistance level for Nifty. Sudden news came from Italy and Europe eases, U.S.  Markets climbed around 2% on Friday. Asian markets are following the International clues and jumped in early morning on today’s session. SGX Nifty is trading at 5260 level. Nifty may face resistance around 5300 level. If Nifty sustains 5300 level for 2 to 3 trading sessions, Nifty may rally more than 100 points in few trading days. Only risky traders may short sell Nifty at 5260 level early morning with the strict stop loss of 5320 and target may 5200 -5180 for today.

NIFTY MAY OPEN ON ITS STRONG SUPPORT

Nifty had tried to sustain over 5300 level in last couple of trading days but Nifty had not succeeded to remain over this level. After high volatility in markets, Nifty took direction from European markets and closed 5221 level on Wednesday near day’s low. U.S markets tumbled over 3% after Greece and Italy news. It was holiday in markets on Thursday. U.S. markets take some rebound after relaxation in Euro zone. SGX Nifty is currently trading on near 5180 level; Nifty may open on this level in Indian markets. 5180 is the strong support for Nifty. Nifty may rebound near this level and take final direction after Europe opening. Put – call ratio for Nifty 5200 strike rate is below than 1 so far, which indicates that Nifty may take support near 5200 level. Nifty may weak after closing below 5180 and short selling may come in Nifty. Nifty may only buy over 5225 level with the strict stop-loss of 5175 and target may 5300 level for today.

CAIRN INDIA CLOSED ABOVE 200 DAY MOVING AVERAGE PRICE

Nifty was volatile and range bound on Tuesday. Nifty was trading in negative zone while CAIRN INDIA has done positive brake-out with huge volumes. Stock was consolidating between Rs 296 to 310 from few weeks. Lots of news came in stock since 2010 and it was volatile so far. Now stock has succeeded to close above its 200 day moving average line on Tuesday’s session. Cairn has another resistance at Rs 336 but upside rally is looking very strong and stock may breach this resistance level in next few trading sessions. Cairn India may buy on current level with the trading stop loss of Rs 306 and stock may touch Rs 350 in few weeks. Nifty may also buy on this level with the strict stop loss of 5240 and target may 5375 for today’s session.

NIFTY MAY OPEN ABOVE 5300 LEVEL

Nifty had opened 5320 on Friday and were trading below this level in entire session. After the bailout package news published for Greece U.S. markets gained last night. Asian markets are trading flat in morning. SGX Nifty is trading again at 5320 level and market may open near this level in today’s session. Nifty has strong support at 5225 - 5200 level and a minor resistance at 5335 level. Nifty 5200 and 5300 strike rate’s puts had added new sort positions in Friday’s session; it confirms strong upside rally will come in next few days.5200 strike rate’s put may short sell for today with the strict stop loss in Nifty option.