Trading Range of Nifty

2800 - 3150

Break down of lower level, severe panic, downside target 2600 + higher level selling opportunity and no buying please.

Nifty Future

Weekly Analysis

Views of Nifty Future :
Nifty future remain inside a trading range and hold the major support level 2800. For smooth run of it must cross and close above 3150-3250 range thereafter it will be able to reach 3550-3600 range but at present market conditions chances are very remote.

On the other hand this down trend will be accelerated when the Nifty break and trade below 2800. Overall pictures of Nfty Future are gloomy and pounters/smart traders/operators/FIIs are convincingly hold their views of negative side which clearly indicate option data.

On a option side, heavy call writing were seen at 3000-3100-3300 strike which further confirmed that traders may not be confidence of a further rally. Interestingly 2900 puts also witnessed sharp drop in open interest which indicate profit booking by put buyers and they are shifting their position at lower band like 2700 and 2800 saw sharp accumulation in open interest position. Consider trading range 2800 to 3150, down side break and close below 2800 confirmation of weakness and play for short sell is a best strategy. Below 2800, non stop target 2600 thereafter the possibility of falling again to its October lows of about 2250. Our Strategy : Short side .

EXPERTS COMMENTS

The effect of Satyam scam was seen in Friday session also despite low inflation rate. Realty sector, Oil & Gas sector and consumer durables were the most active sectors to pull the market down. FII and DII were the most active seller in the last trading session of the last week. They were taking interest in put buying of Reliance group especially Rcom, Reliance Infra and Reliance capital so we guess to see the bearish trend in above mention stocks. We have seen the fresh selling in Nagarjuna Construction, IVRCL, Punj Lloyd LITL, LT, Rcom, Praj ind and Tata Motors so we suggest the market participants they should not make any long position in these stocks. On the other tremendous long position have seen in Infosys, TCS, Ambuja Cement.

FII ACTIVITY

The most active contracts in FII counter are Reliance cap 520 put up by 464%, LT 620 put up by 355%, DLF 180 put up by 300%, and HDIL 60 put up by 255%. Total NET BUY / SELL VALUE in the FII's counter is following - In Index future it is -666CR, In Index Option it is 63CR, in Stock future it is -7.2CR & in stock options 7.7CR.

NIFTY PCR STRATEGY:

Nifty PCR level becomes 1.26 level. Higher level PCR levels were seen in PNB 6.20, Bank nifty 1.70, BPCL 1.68, Tata motor 1.36, and Ambuja 1.29. While lower PCR was seen in Tata steel 0.80, Reliance infra 0.81, HDFC 0.85, LT 0.90 and ONGC 0.92. Highest call activity was seen in 3000 and 2900 call while highest put activity was seen in 2900 and 2800 put.

Always Remember :

1.   The World did not stop lending, servicing & consuming, it moved on.

2.   Turmoil in stock market excellent buying opportunity for long term investors. (Expected return 100 to 300-500 percent in 12 to 36 months)

NIFTY FUTURE + BANK NIFTY +CNX IT

: Nifty Future :

Last and final support exit 2800, thereafter............. Sell on rise

NIFTY :

Monthly: Trend decider is 2881 and resistance is 3187 and 3416 and support is 2653 and 2347.

Weekly: Trend decider is 2942, resistance is 3074 3278 and support is 2738 2606.

Hold strong resistance 3150 - Strong support 2800. Today resistance 2900 - 2930, down side support 2812-2790.

BSE :

Weekly:
Weekly trend decider 9709, higher level resistance 10167 10928, down side support 8948 8490.

Consider support 9162 break down likely panic on the card.

Today resistance 9630, down side break 9250, further weakness and likely next target 9000 mark.

CNX IT :

Weekly:
Weekly trend decider 2222, higher level resistance 2331 2467, down side support 2086 1976.

On rise sell... close watch the result of Infosys on 13^th Jan and decide your trend.

BANK NIFTY :

Weekly:
Weekly trend decider 5061, higher level resistance 5275 5659, down side support 4677 4464.

On rise sell.........with consider resistance 5500 mark.

DOW :

Above 9000 over all positive and target 9500-9600, close below 8000, panic in the USA market and expected very bad news.

RELIANCE:

Monthly: Monthly trend decider is 1224 resistance is 1415 1597 and support is 1042 and 851.

Weekly: Trend decider is 1209, resistance is 1325 1506 and support is 1029 913.

Higher level resistance 1400-1410. Today resistance 1200-1210, down side below 1090 further weakness and test 1020 mark. Key resistance already broken 1200. Penetration of lower level more resumption downtrend.

ONGC:

Monthly: Trend decider is 679, resistance is 731 793 while support is 616 564.

Weekly: Trend decider is 710, resistance is 759 847 and support is 623 573.

Lakshman rekha 742. Failure this level reaffirms the negative medium term view of the chart. Long term support around 600, If this level breach the next stop of this counter 540. Keep a stop loss 700 and sell this stock, down side below 660 it will test 625 mark.