15/7/09 - Market Cues & Calls

Market opened gap up yesterday on strong global cues. As mentioned in yesterday's column technically its an pull back not an reversal.Still volume looking dry in markets. The Big 'R' Reliance can change market's trend. Many institutions & MF's have downgraded RELIANCE due to RNRL verdict. Still it will be the key in coming days. Yesterday's session some good news came from Govt side & Metro dept which boosts Investor community. Met Dept. yesterday said that the monsoon may make up its earlier short fall with increased rains in the coming days. India needs higher investment to return to higher growth path said Finance minister in yesterday's parliament session,which ignites the later session of market to an new high of 4128. Nifty closed up by 137 points and sensex by 453 points. 4100 CE and 4000 PE added more Open Interest.

INSTITUTIONAL ACTIVITY :: FII (+87.23 cr) ::: DII (+200.29 cr)

Cues ::

>>>> Nifty fut discount converted into premium of 1.25.
>>>> US & Europe markets closed flat.
>>>> S&P 500 holding 200 DMA for 6th trading session but on low convinction
>>>> Market volumes are dry.
>>>> Selling at higher levels witnessed.
>>>> Still trading below 50 SMA, but managed to close above 4050
>>>> Asian Markets trading flat to positive
>>>> Two near gaps seen in Nifty fut charts


Levels ::

Nifty fut Supp @ 3996 ::: Res @ 4230

4048 - 4080 - 4102 - 4123 - 4144 - 4177

Today market will trade flat. Intraday traders need to watch 4087 level keenly. Breaking that market will fall to some extent.Close above 4050 will try to kiss 4230 where we can see sell off. Watch volumes,volumes, only volumes from here on. still there is no change in my view for 3713 until a close above 4230 with volumes.

Option Strategy ::

Bear Spread :: BUY 4200 PE and Sell 4000 PE. Low risk Max gains.

Live Calls ::

SELL ZEEL EQ @ 166 - 165.50 SL 167 ZEE BANGED BOOK 50 % @ 160 AND HOLD REST TO COST

BUY MLL FUT @ 50 - 51 SL 48.85 >>>> 10.15 A.M

Sell Nifty @ every rise today >>>>> 10.24 A.M

SELL NIFTY FUT @ 4141 - 4150 SL 4156 TGT 4110 - 4090 >>>> 10.30 A.M NIFTY fut SL hits exit @ cost. Still market is sell @ rise..

BUY SUZLON 85 PE @ 3.75 SL 2 TGT 6 - 9 >>>>> 10.36 A.M