As discussed in the yesterday's post, Indian Stock Markets had a tough trading session today, finally closing the day down by around 1%. Nifty found good support in the range discussed yesterday (between 4960-4980) and closed the day @ 4987. This particular suppot range is quite critical for the Indian markets as it will confirm the higher-highs and higher-lows trend built after the last correction to 4800.
Provisional data released by exchanges indicate selling by Foreign Institutional Investors by around 200 Crores. In the derivatives segment too, FIIs have been net sellers of Index and Stock Futures. In the Options segment, FIIs have been net buyers. The Put prices for Nifty indicate some buying coming in there, hence indicating further downside.
US has finally come in green after Bernake's positive comments on US economy, currently trading up around half-a-percent. It is critical that Dow Jones finds some support at around current levels, else we might see another round of steep correction in the markets which may take Dow Jones down to 9200-9300 levels.
Technically, Nifty is also trading in a support zone of 4940-4980. If Nifty breaches 4940 on the downside then we might see some some sharp selling coming into Indian markets which may take it to 4750-4800 levels. Whilst if it finds some support around the current levels, then we might see some resistance coming in 5060-5100 range.
The traders who have taken long position today can continue to hold it till Nifty breaches 4935 on the downside. The target on the upside can be placed at 5100 where it might face some strong resistance.
Kotak Bank- SBI pair trade strategy has given up some of its gains today, but still in positive zone. One may continue to hold the position till the levels breached. These levels have been discussed in Friday's post.
Wishing you a great trading day tomorrow!!!
Provisional data released by exchanges indicate selling by Foreign Institutional Investors by around 200 Crores. In the derivatives segment too, FIIs have been net sellers of Index and Stock Futures. In the Options segment, FIIs have been net buyers. The Put prices for Nifty indicate some buying coming in there, hence indicating further downside.
US has finally come in green after Bernake's positive comments on US economy, currently trading up around half-a-percent. It is critical that Dow Jones finds some support at around current levels, else we might see another round of steep correction in the markets which may take Dow Jones down to 9200-9300 levels.
Technically, Nifty is also trading in a support zone of 4940-4980. If Nifty breaches 4940 on the downside then we might see some some sharp selling coming into Indian markets which may take it to 4750-4800 levels. Whilst if it finds some support around the current levels, then we might see some resistance coming in 5060-5100 range.
The traders who have taken long position today can continue to hold it till Nifty breaches 4935 on the downside. The target on the upside can be placed at 5100 where it might face some strong resistance.
Kotak Bank- SBI pair trade strategy has given up some of its gains today, but still in positive zone. One may continue to hold the position till the levels breached. These levels have been discussed in Friday's post.
Wishing you a great trading day tomorrow!!!
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