03-12-14 MARKET TECHNICAL VIEW:

MARKET TREND - ROARING STOCKS:

Second day in a row Nifty closed in red.  Due to positive economic data from global indicators, crude has gained marginally and our Indian Govt. also increased excise duty with out effecting to retailers.  Bank Nifty gained marginally after RBI stand to maintain status quo on Credit Policy.   RBI's positive comments to maintain Repo Rate as per need, and highlighting Govt. Priorities (like railways & def fence sector), have improved sentiment of traders.  RBI positive comments and global positive indicators also could not influence the Nifty for strong pull back and closed below trend line support of 8550, which indicating  negative trend of our Nifty.

FIIs are net sellers for worth of 2631.02cr in Derivatives Segment (total).  Particularly in Index Futures FIIs are net sellers of 55525 contracts for the worth of 1295.79cr, by adding 52947 shorts and square off of 2578 long contracts.   In Equity Segment FIIs are net buyers for worth of  106.82 cr and DIIs are net sellers for the worth of 40.42cr. Some buying also seen in some of the mid-cap and small-cap stocks (value buying), which have helped for positive close of market breadth.  As traders are safe guarding their prevailing shorts in the system, simultaneously  they have hedged their positions with Options at higher level.   In return Derivative OI has increased to 8500-8700 level along with active range.   As 8600 CE and 8400 PE level are maintaining highest OI, we may think that, today's Nifty range can be in between 8400-8600.  PCR also closed below 1.00 (0.97). Rupee closed at 61.796 by gaining 0.12 ps.  

Today our Nifty may open flat irrespective of Asian Markets positive opening.   8470 will be crucial support for Nifty, once this level breaks, Nifty may establish its down trend.  If it breaks 8585 level at higher side, Nifty may try to maintain its bullishness for some more time.

NIFTY SPOT LEVELS:

Pivot: 8530

Resistance: 8555/8585/8610

Support: 8500/8474/8444

NIFTY FnO BAN: NIL

STOCKS TO WATCH (POS/DAY BASED ON LEVELS GIVEN) 

HDFC: SELL < 1130 TRG 1125/1113 SL 1138

RECL: SELL < 340 TRG 335/330 SL 346

JINDAL STEEL: BUY > 138 TRG 140/146 SL 136

 

B/F TIPS:

RELIANCE : SELL < 970 TRG 950/938 SL 884 (PE may be better option)

                Actual: Low: 958.35; High: 970.90 (yesterday levels to be break, to confirm  the selling pressure)

                            960PE: Low: 12.70; High: 18.55 (may hold till eq. price breaks 972)