09-12-14 MARKET TECHNICAL VIEW:

MARKET TREND - ROARING STOCKS:

Selling signal was triggered by Infosys promoters by downloading their holdings in bulk.  Other IT sector giant TCS also joined hands (technical weakness) with Infy, by which the Markets' technical levels were broken and created panic to traders.  As long term investors like FIIs have taken advantage and bought Equities highest volumes after 26/10 (4662.91) for the value of Rs.4984.60cr.  Even DIIs have joined and bought for the worth of 1030.65cr.  Weak profiled traders and retailers obviously got panicked, by which the Market Breadth was fallen.  PCR also created vacuum and recorded  0.89 by loosing 0.11 pts.   Rupees was strengthened by 0.09ps and recorded at 61.83.   In Derivatives segment FIIs are net buyers for the worth of 310.89cr.  Derivatives OI range also widened to 8400-8600 from its earlier range of 8500-8600.   In Index Futures FIIs are net buyers of 60.29 cr worth of 9684 contracts.   FIIs have added 18114 Long contracts and 8430 Short contracts into system, by which OI has been increased by 26544 contracts.

As we mentioned in our yesterday note, once Nifty closes below 8470 level, short term down trend has started by breaking its 20 DMA.  As cash flows are dominating the market along with positive sentiment (on overall Indian Economy), stock specific and opportunistic buying will take place, which may encourage pull back rallies in the market for time being.   Traders has to maintain longer SL, if they are trying to go for any short positions. Now onwards positional trades with SL may be more advantageous than intra-trades.  Below 8460, Nifty may try to get Trend Line Support at 8400 & 8350.  For time being Nifty resistance established at 8580/8600 level.

NIFTY SPOT LEVELS: 
Pivot: 8472
Support: 8398/8358/8284
Resistance: 8512/8586/8626

NIFTY FnO BAN:  NIL


STOCKS TO WATCH (POS/DAY BASED ON LEVELS GIVEN) 
IDFC: SELL < 158 TRG 156 SL 160
JAINIRRIGATION: SELL < 81 TRG 78.50 SL 83
SBI: SELL < 314.50 TRG 311 SL 317
NDL: BUY > 48 TRG 50/54 SL 47
MAHINCIE: BUY > 236/241 TRG 241/251 SL 232