Nifty opened Gap down yesterday on weak global cues yesterday lead by china .Shanghai Composite plunged 6.7%, as investors dealt with liquidity concerns and an anticipated slowdown in lending. Recent sharp declines in Chinese stocks have unnerved investors who are worried about whether the major economies can pull convincingly out of recession and validate this year's rally in riskier assets.Meanwhile GDP was released yesterday which was 6.1% in april - June 2009. As mentioned in column yesterday Realty and sugar sector did stunning performance yesterday. Realty will do good rest of the week.Steel sector plunges ahead of bad result from Tata steel FII's continue to be net sellers.
INSTITUTIONAL ACTIVITY :: FII ( -271 cr) ::: DII (+19 cr)
- Nifty ended @ 11.30 point premium vs 5.85 premium so cost of carry increased.
- India Vix closed @ 34.51 vs 33.27 with 3.73% increase suggest market getting unstable
- 4500 PE and 4900 Ce added more open interest
- Nifty Put Call Ratio Open Interest @ 1.24 vs 1.2
- Except Stock futures FII's were net buyers in all other counters.
- US and Europe markets closed negative.
Finally Negative divergence and RSI overbought conditions gave some relief for bears.Moving averages are still heading up in Nifty Eod charts. Adx is totally flat suggesting that Big move in due and still +DI above -DI suggest Bulls are ruling.MACD still above zero line.RSI 2 Within a day came back to Oversold zone.Nifty formed Invert Head and shoulder pattern on 5 min charts with Neckline @ 4685 will target 4720/30.Market likely to open Flat to negative.4620 is the key support level.
Levels ::
Nifty fut supp @ 4631 :: Res @ 4716
Bearish > 4676 < Bullish
Positional Picks ::
ICI
Hyderabad Industries
Happy trading!!!!
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