17-12-14 MARKET TECHNICAL VIEW:

MARKET TREND - ROARING STOCKS:

Nifty was pushed to over sold zone, with continues fall.   Even though strong support lies at 7850 level for Nifty, 2 or 3 days Nifty may try to get consolidate at 8000 level which may take support at 7940-7980 level.  As Bank Nifty broken its 20 DMA level, some more weakness may see from this indices.   Adheres reports from Russia and other Oil producing Countries' Economic Growth is in stake, market sentiment weakened further.   Reasons for Inflation, need not be only Low Production Cost, Low level demand (due to low purchasing power) also may be one of the reasons.   Rupee Depreciation indicate Higher outflows of USD, which may increase worry about Fiscal Balances.  Even though, Crude Price is more advantageous to India and Inflation is within control, Rupee depreciating and Trade Balance is became much worry.   Unless Trade Balance improves, if any increase in Crude prices will becomes much negative to India.

Yesterday also FIIs have continued their selling in Derivative and Equity Segment for the worth of  1800.56 and 1247.24 cr respectively.  But DIIs are in buying side for the worth of 534.60 cr.  In Index Futures, FII added 19636 Shorts and Sold 5084 Long contracts for worth of 556.99cr by which OI decreased by 14555 contracts.   As the Mid & Small indices also faced selling pressure, Market Breath weakened further.  Rupee Closed at 63.65 by depreciating 0.85ps.   India Vix increased by 16% (recent high) by closing at 16.30, which indicate Options writing.  Bolinger Bands negative divergence and Improvement of Derivatives Lower Base indicate, shortly market is going to face pull back .

As most of our Asian Peers have recovered from day lows, let us hope the same with our Nifty.   Day traders can go long (in return journey) above 7980 with 7940 SL.

NIFTY SPOT LEVELS:

Pivot: 8103

Support: 8017/7966/7880

Resistance: 8154/8240/8290

NIFTY FnO BAN: HDIL & UNITECH

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

JINDAL STEEL: SELL < 134 TRG 130 SL 136

CANARA BANK: SELL < 412 TRG 400 SL 419

IOB: SELL < 57 TRG 53 SL 59

COALINDIA: BUY > 355 TRG 360,370 SL 344