01-04-2014 MARKET TECHNICAL VIEW:

MARKET TREND:

Yesterday we had last working day  in the 2013-14 financial year (not settlement wise). Most of us may have the feeling as:  Market has raised too much, but in reality: from its starting day 01-04-2013 to till date market raised only 1033 points 18% (opened @ 5697 and yesterday high is 6730).   Even PE raised by 1.35 pts  (01-04-2013 NIFTY'S PE is at 17.51 and on 31-3-14 is at 18.86) and ration is 7.71%.   Only question comes here, whether this PE ratio point is economical to buy the Market or not?   

As FIIs are major market drivers and our Indian Market seems to be more prospective to FIIs in comparison to other peer markets, we can expect Continues Support from them.   Real time appreciation is not much high in value of USD (18% nifty increase and Rs. depreciated by 10.92%) i.e near to 7%, our Indian Investors (long term) are more gainers than FIIs.  But FIIs have the habit of periodical profit booking (rotation of investment) their profits may be high.  They need not to withdraw money from our Indian Market.   Near Future, Cash Withdraws and simultaneous Market Correction, may be witness only from   P-Notes segment, which has been bought in view of Elections.

Yesterday FIIs are at selling side (after 21st March), by 170 cr in Derivative Segment, and  5336 contract of Index Futures worth of 177 cr. by adding OI of 16918 contracts (sold 11127 contract and 5791 short contracts were squared off).  But in Equity segment they bought worth of 943 cr, which supported for positive market breadth.  

As today we have RBI credit policy and HSBC economic data, if the Nifty not crossed 6730 level, technically it may force to to go for correction (profit booking).  As Derivative's highest OI range is between 6400-6700 along with active 6800 CE and 6600 PE, market may witness volatility.   Day traders can have movement trades only as their strategy and can wait for open positions.

NIFTY SPOT LEVELS:

Pivot: 6699

Resistance: 6735/6766/6803

Support: 6667/6631/6600

NIFTY FnO BAN: NIL

STOCKS FOR DAY:

ONLY MOMENTUM TRADES, BETTER TO BE BANK NIFTY FUTURES WITH STRICT SL. (CLOSING ABOVE YESTERDAY'S HIGH IS CRITICAL)