Monday, April 21, 2014

22-04-14 MARKET TECHNICAL VIEW:

MARKET TREND:
Yesterday Market has created one more New High and closed above 6800.   As we mentioned in our earlier notes, bulls are not leaving any chance to create New Records.    FIIs are net buyers in Derivatives (390.68 cr),  Equity (212.75cr) and Index Futures Segments.   In Index Futures FIIs have bought 11081 contracts worth of 377.94 cr. FIIs have bought 26.3 k contracts and 15.2 k contacts are in short by adding OI of 41531 contracts.   Futures Roll over also taking place more aggressively along with Trading in May month series.  As Nifty weekly and monthly charts are entering to over bought zone (stochastic), before Election Results, market may witness smaller correction/profit bookin.   

Derivatives OI range has been shifted to 6700-6900 range from 6700-6800 range,  with active 6800 CE & PE but in May series out of call range i.e 6000-7000 are having highest OI.  This indicate that: Short Term Traders/Speculators are more active in get Quick Bugs with their Speed Money, which (might) have pumped (estimated 2.5 b) in to Market in recent days.    To counter this regular traders/retailers should maintain strict SL.

Today Market open flat and may see sluggishness, because of roller overs exercise and to get consolidate at new high &  Peer Markets'  influence.   If Nifty opens above 6820; 6850, 6880 and 6920 may act as resistance and force traders to go for profit booking. Going for 6800 PE  in May series (positional) may be right strategy to limit our self (self control) in these Over Bought Market.

NIFTY SPOT LEVELS:
Pivot: 6810
Resistance: 6833/6850/6872
Support: 6785/6770/6755

NIFTY FnO BAN: HDIL

STOCKS FOR DAY:
IFBIND EQ: BUY > 88 TRG 90 SL 86
KALYANISTEEL EQ: BUY > 67.50 TRG 72 SL 64
CROMPTON EQ: SELL < 188 TRG 183 SL 191

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