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Wednesday, August 19, 2009

19/08/09 - Market cues & calls

Nifty recovered after Monday's fall due to short covering again.Buying seen in heavy weight stocks at lower levels which helped index to move higher yesterday.Advance/Decline ratio was good yesterday. Though Reliance not supported the Index at higher levels.Technology and Sugar sector did well yesterday.Government keen on RIL - RNRL dispute.FII's again net sellers for third day while DII's Investing at this level.As mentioned in yesterday's column Dollar bottoming out will make out flow FII's money.

INSTITUTIONAL ACTIVITY :: FII (-772 cr) ::: DII (+467 cr)
  • Nifty ended in discount of 4.35 vs 15.30 discount cost of carry decreased.
  • Nifty Put Call Ratio Open Interest @ o.98 vs 0.93
  • 4300 PE and 4700 Ce added more Open Interest
  • India Vix closed @ 45.04 vs 46.49 with decrease 3.12% change suggest market in stable
  • US house sales down by 1% and CPI was unchanged for month of July 2009
  • US/Europe markets ended positive
Technical view ::

As expected Nifty came to 4435 which we mentioned in yesterday's column and rallied above that for high of 4495.Today I am expecting market to open flat and trade positive until afternoon after that sell off can come which will lead to 4380 mark. For me yesterday's run are technical pullbacks on upside. 4365 giving solid support once close below that will take markets to 4300 and 4215 levels. Old Fibo levels will come into play.Still markets on bearish side, Positional traders can look for OTM options in September series. Markets are in distribution phase. Only smart money can take market higher high. Until that it will be range bound with negative bias.

Levels ::

Nifty Fut Supp @ 4380 :: Res @ 4528

4417 - 4442 - 4466 - 4491

Bearish > 4460 < Bullish


Positional Picks ::

NBventure
Uflex
varun Indutries

Happy Trading !!!!

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