Indian Equity Markets finally had a traders' session on Tuesday. After a lacklustre session on Monday, the markets gained by more than 1% today. The markets initially opened flat and gradually gained momentum taking cues from European markets and Dow Jones futures trading in Europe.
Among the sectors, Metals and Information Technology sectors did well. Stocks like Hindalco, Jindal Steel, TCS and Infosys have gained by more than 1.5%. Cement stocks though remained in negative territory. The supply glut is pulling the cement prices down and hence, putting pressure on Net Profit Margins of cement companies.
Provisional data released by exchanges gave encouraging cues. Foreign Institutional Investors (FII) have been net buyers by around 300 Crores. In the derivatives segment too, FIIs have covered some of the short positions created earlier.
Nifty @ 5200 seems a decent support in the near short term. Technically, Dow Jones too look in short-covering mode and likely to go up till 10070 at-least in the short term where it has a key resistance. The next resistance level stands at 10300, breaking which will confirm intermediate bullish trend. Here in India, the traders need to be cautious as markets have already been over-valued. One may only go long if Nifty stays above 5320 on hourly basis tomorrow, with stop-loss of 5270 and target price of 5400.
Options traders can sell Nifty 5500 Call above 35 with stop-loss of 50 and target price of "0". Alternatively, one may go int bear spread buying 5500 Put and selling 5400 Put once Nifty approaches 5450, though it's still a bit far.
All stock strategies suggested earlier have been intact. Wishing you a great trading day tomorrow!!!
Among the sectors, Metals and Information Technology sectors did well. Stocks like Hindalco, Jindal Steel, TCS and Infosys have gained by more than 1.5%. Cement stocks though remained in negative territory. The supply glut is pulling the cement prices down and hence, putting pressure on Net Profit Margins of cement companies.
Provisional data released by exchanges gave encouraging cues. Foreign Institutional Investors (FII) have been net buyers by around 300 Crores. In the derivatives segment too, FIIs have covered some of the short positions created earlier.
Nifty @ 5200 seems a decent support in the near short term. Technically, Dow Jones too look in short-covering mode and likely to go up till 10070 at-least in the short term where it has a key resistance. The next resistance level stands at 10300, breaking which will confirm intermediate bullish trend. Here in India, the traders need to be cautious as markets have already been over-valued. One may only go long if Nifty stays above 5320 on hourly basis tomorrow, with stop-loss of 5270 and target price of 5400.
Options traders can sell Nifty 5500 Call above 35 with stop-loss of 50 and target price of "0". Alternatively, one may go int bear spread buying 5500 Put and selling 5400 Put once Nifty approaches 5450, though it's still a bit far.
All stock strategies suggested earlier have been intact. Wishing you a great trading day tomorrow!!!
No comments:
Post a Comment