Following the global peers, Indian Stock Markets had a weak trading session on Thursday with benchmark indices Nifty and Sensex fell by around 1% each. All the sectors have closed in the red, with metals, automobiles and construction sectors taking the maximum brunt.
Provisional data released by exchanges indicate a dismal picture. Foreign Institutional Investors have been net sellers by around 200 Crores during today's trading. In the derivatives segment, there has been massive selling seen in the Index and Stocks Futures segment, while some Put writing is also seen happening in 5200 and 5100 Nifty Puts.
Now the big question arises where are our markets head to now?? Technically, a lot depends upon Dow Jones. Dow Jones has found some support at 9650 from where it has rebounded strongly till now. If 9650 gets broken decisively, then we might see next support coming at 9200 only. In this scenario, Nifty @ 4800 looks imminent.
Alternatively, if Dow Jones able to regain strength from here, we might see it heading towards 10100. In this case, Nifty can head towards 5400 again, albeit it is doutbful that it will sustain at those levels because the kind of Call writing is seen at those levels indicate that those levels will give tough resistance.
Traders may take a Bull spread strategy by buying Nifty 5200 Call and Selling 5300 Call when Nifty comes in the range of 5200-5215. TCS Sell strategy has hit its target price today and gave a profit of 16000 Rs per lot.
The other strattegies remain intact, including pair trade strategy of M&M-Tata Motors... Its been 18 days. Wow!!!
Provisional data released by exchanges indicate a dismal picture. Foreign Institutional Investors have been net sellers by around 200 Crores during today's trading. In the derivatives segment, there has been massive selling seen in the Index and Stocks Futures segment, while some Put writing is also seen happening in 5200 and 5100 Nifty Puts.
Now the big question arises where are our markets head to now?? Technically, a lot depends upon Dow Jones. Dow Jones has found some support at 9650 from where it has rebounded strongly till now. If 9650 gets broken decisively, then we might see next support coming at 9200 only. In this scenario, Nifty @ 4800 looks imminent.
Alternatively, if Dow Jones able to regain strength from here, we might see it heading towards 10100. In this case, Nifty can head towards 5400 again, albeit it is doutbful that it will sustain at those levels because the kind of Call writing is seen at those levels indicate that those levels will give tough resistance.
Traders may take a Bull spread strategy by buying Nifty 5200 Call and Selling 5300 Call when Nifty comes in the range of 5200-5215. TCS Sell strategy has hit its target price today and gave a profit of 16000 Rs per lot.
The other strattegies remain intact, including pair trade strategy of M&M-Tata Motors... Its been 18 days. Wow!!!
Wishing you a great trading day tomorrow!!
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