After continouos rise for seven consecutive trading sessions, Indian equity markets took breather on Friday, closing down around 0.20%. After a lacklustre May where FIIs pumped out around 12000 Crores, it has been good month so far. FIIs have put in back around 3000 Crores back into the Indian markets. With European zone showing some stability we might expect some more inflows coming into the Indian Equity markets.
Though the current levels might not encourage the foreign institutions to put new money into the markets. Hence we might see some range bound markets for a while now. There are few more concerns that might discourage buying at the current levels. Another one is RBI Monetary policy review due for 27th June. With Inflation figures above 10% for three consecutive months, we might see some tightening done by the central bank before / on the policy review meet. Slow down in Europe is likely to impact Information Technology stocks which have major weightage in both Sensex and Nifty Indices. Any tightening by RBI will also increase the funding costs for the companies and hence might lower down the profit margins for various companies.
Technically too, Nifty is standing at strong resistance levels. Existing short traders can continue to hold the position till Nifty breaches 5310 levels with target level of 5190.
TCS sell strategy is giving losses of around 2%. M&M-Tata Motors pair trade strategy has done well on Friday as M&M went down by 3% while Tata Motors remain flat. Currently it is giving a profit of 8000 Rs per pair. Kotak Bank and SBI pair trade strategy is in profit overall by around 20000 Rs per pair, albeit there is not much change on Friday.
I am not adding more recommendations as we already have three open positions lying. Nifty is likely to show volatility due to expiry week and hence, we must follow the stop-loss and target levels strictly.
Wishing you a great expiry week!!!!
Though the current levels might not encourage the foreign institutions to put new money into the markets. Hence we might see some range bound markets for a while now. There are few more concerns that might discourage buying at the current levels. Another one is RBI Monetary policy review due for 27th June. With Inflation figures above 10% for three consecutive months, we might see some tightening done by the central bank before / on the policy review meet. Slow down in Europe is likely to impact Information Technology stocks which have major weightage in both Sensex and Nifty Indices. Any tightening by RBI will also increase the funding costs for the companies and hence might lower down the profit margins for various companies.
Technically too, Nifty is standing at strong resistance levels. Existing short traders can continue to hold the position till Nifty breaches 5310 levels with target level of 5190.
TCS sell strategy is giving losses of around 2%. M&M-Tata Motors pair trade strategy has done well on Friday as M&M went down by 3% while Tata Motors remain flat. Currently it is giving a profit of 8000 Rs per pair. Kotak Bank and SBI pair trade strategy is in profit overall by around 20000 Rs per pair, albeit there is not much change on Friday.
I am not adding more recommendations as we already have three open positions lying. Nifty is likely to show volatility due to expiry week and hence, we must follow the stop-loss and target levels strictly.
Wishing you a great expiry week!!!!
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