Indian Equity Markets had a lousy session on Tuesday as markets traded within a small range throughout the day. In fact, it has been more than a week since markets have been trading within a narrow range. After trading in a positive territory in the early part of the day, the markets gave up its gains and finally ending the day down by quarter of a percent.
Almost all the sectors were in red, albeit not more than 1%. Financial Services sector declined the maximum. The correction was due after surging continously for last two weeks in the banking stocks. Construction stocks had a good run - DLF, Unitech, Sobha Developers, HCC etc have gained somewhere between 2-4%.
Provisional data released by exchanges indicates somewhat subdued picture. Foreign Institutional Investors have bought shares worth 250 Crores but in the derivatives segment, they have been net sellers in the index segment.
US markets have gained by 0.5% last night, more on the back of technical rally. It opened weak after IBM and Goldman Sachs reported disappointing results, but gradually recovered and finally closing in the green. As the rally is purely technical in nature, we might see Asian Indices having a flattish-to-negative opening in the early part of the trade.
For Nifty, we might see some support coming @ 5345-5350 levels. If these levels are breached, we might see Nifty heading to 5300 levels where it is widely speculated to find a strong support level. Though my personal view is that in case Nifty now reaches 5300 level, it is likely to breach it as there has been massive shorting of Nifty 5300 and 5200 Strikes by the traders and we might see covering of some of these short positions which could pull down the index further. On the upside, Nifty has mild resistance @ 5390-5400. The major resistance stands @ 5435-5450 levels. If this is too breached, then Nifty may head to 5535 levels. Traders are advised to go long on Nifty today in 5340-5345 range with stop-loss @ 5325 and target price of 5360.
Wishing you a great trading day today!!!
Almost all the sectors were in red, albeit not more than 1%. Financial Services sector declined the maximum. The correction was due after surging continously for last two weeks in the banking stocks. Construction stocks had a good run - DLF, Unitech, Sobha Developers, HCC etc have gained somewhere between 2-4%.
Provisional data released by exchanges indicates somewhat subdued picture. Foreign Institutional Investors have bought shares worth 250 Crores but in the derivatives segment, they have been net sellers in the index segment.
US markets have gained by 0.5% last night, more on the back of technical rally. It opened weak after IBM and Goldman Sachs reported disappointing results, but gradually recovered and finally closing in the green. As the rally is purely technical in nature, we might see Asian Indices having a flattish-to-negative opening in the early part of the trade.
For Nifty, we might see some support coming @ 5345-5350 levels. If these levels are breached, we might see Nifty heading to 5300 levels where it is widely speculated to find a strong support level. Though my personal view is that in case Nifty now reaches 5300 level, it is likely to breach it as there has been massive shorting of Nifty 5300 and 5200 Strikes by the traders and we might see covering of some of these short positions which could pull down the index further. On the upside, Nifty has mild resistance @ 5390-5400. The major resistance stands @ 5435-5450 levels. If this is too breached, then Nifty may head to 5535 levels. Traders are advised to go long on Nifty today in 5340-5345 range with stop-loss @ 5325 and target price of 5360.
Wishing you a great trading day today!!!
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