Indian Stock Markets had a lacklustre session on Wednesday as markets failed to retain the gains made in the first half of the trading session and finally closing the day almost flat. Nifty which made the high of 5050 during mid session closed the day at 5000, virtualy giving up all the gains.
Provisional data indicate net selling by Foreign Institutional Investors (FIIs) by around 250 Crores while Domestic Institutional Investors made net purchases of Rs. 150 Crores. In the derivatives segment, FIIs seem to cover up few short positions as they made net purchases by around 500 Crores in the Index and Stock Futures segment.
Overnight Dow Jones has closed in negative territory, as probe in BP Oil Spill starts. It seems Dow Jones weak closing might not impact the Indian equity markets much, but technically, markets are looking to trade in a narrow range between 4950-5080 range. 200 day moving average stands at 5000 which brings support while 30 day moving average stands at 5050 which brings resistance. Awesome Oscillator too is giving a breakout only above 5060.
Thus, traders who plan to take fresh positions may wait for a while. In case Nifty breaks 5080 on the upside, one may take buy position in the markets with a target of 5200 and stop-loss of 5020. Similarly, if Nifty breaks 4940 on the downside, one may take sell position in Nifty with target price of 4750-4800 and Stop-loss of 5005.
Our pair trade strategy of Kotak-SBI is still giving us gains. One may retain this position and only come out on the levels as discussed earlier. Cipla is still hovering close to its target price of 330.
Wishing you a great trading day today!!
Provisional data indicate net selling by Foreign Institutional Investors (FIIs) by around 250 Crores while Domestic Institutional Investors made net purchases of Rs. 150 Crores. In the derivatives segment, FIIs seem to cover up few short positions as they made net purchases by around 500 Crores in the Index and Stock Futures segment.
Overnight Dow Jones has closed in negative territory, as probe in BP Oil Spill starts. It seems Dow Jones weak closing might not impact the Indian equity markets much, but technically, markets are looking to trade in a narrow range between 4950-5080 range. 200 day moving average stands at 5000 which brings support while 30 day moving average stands at 5050 which brings resistance. Awesome Oscillator too is giving a breakout only above 5060.
Thus, traders who plan to take fresh positions may wait for a while. In case Nifty breaks 5080 on the upside, one may take buy position in the markets with a target of 5200 and stop-loss of 5020. Similarly, if Nifty breaks 4940 on the downside, one may take sell position in Nifty with target price of 4750-4800 and Stop-loss of 5005.
Our pair trade strategy of Kotak-SBI is still giving us gains. One may retain this position and only come out on the levels as discussed earlier. Cipla is still hovering close to its target price of 330.
Wishing you a great trading day today!!
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