There is continued weakness in the market and this is shown on a daily basis as Nifty gets fierce resistance at important levels. Yesterday, it was 4270. For today, it is 4400-4430.
We are moving up and down in a narrow range of 150-200 points for now. this may be the preparatory move before the budget. Positional traders are advised to refrain from taking any unhedged positions before the announcement of the budget. As already stated, a Straddle might be the best opportunity for profits before Monday's announcement. Until and unless we close above 4430 with volumes, this market is a sell on rallies at important resistances.
On Thursday, Nifty is expected to open on a flat to positive note in line with positive global cues. Intraday traders may short if the level of 4335 spot is broken intraday for a target of 4305-4290. Above 4335, Nifty may test 4390-4400 today. Very risky traders can short near 4400 with stoploss at 4430 closing basis. If we close above 4430 today, get out of all shorts until Budget day.
Nifty resistance at 4380-4400-4430-4450. Support at 4335-4285-4250-4225
Nifty Futures tips
Thursday, July 2, 2009
Tuesday, June 30, 2009
A Healthy Correction... OR More???
The correction that we are witnessing is infact very healthy for the markets. It shows that people have certain expectations from the budget and they are booking profits to reduce their positions before the big event. Chances of a disappointment is low if we correct before budget than afterwards.
The Government surely won`t be able to to deliver on all the expectations. Also, they will not fail on all the expectations. It just remains to be seen that which sectors receive the most and which receive less. For example, expect more money in the pockets of the common man which can lift sectors like consumer goods, automobiles etc.
Given that we do not have a pre budget rally and stay below 4450 on budget day, we can really make a dash upwards if there are positive surprises. If there are not, well, don`t expect lower circuits anyways.
Hence, a healthy correction
The Government surely won`t be able to to deliver on all the expectations. Also, they will not fail on all the expectations. It just remains to be seen that which sectors receive the most and which receive less. For example, expect more money in the pockets of the common man which can lift sectors like consumer goods, automobiles etc.
Given that we do not have a pre budget rally and stay below 4450 on budget day, we can really make a dash upwards if there are positive surprises. If there are not, well, don`t expect lower circuits anyways.
Hence, a healthy correction
Monday, June 29, 2009
Nifty Views for June 29 - July 3, 2009
Just one week to go before the budget is announced. Expect extreme movements on Nifty. This is not going to be an easy week for Day Traders.
The expectations now before the budget are exactly opposite to what they were before the elections. That time it was pessimism where everyone was expecting a hung parliament. Markets were positively surprised and we all know what happened thereafter. The worrying factor this time round is the optimism.
It would be good for the markets if they in the 4200-4500 area this week. That ways, at least the downside will be limited if there is disappointed from the budget. However, if we are going to rally higher this week, the fall would also be severe on disappointment from the budget.
Options will obviously command a higher premium this week. One can look to buy a Straddle on Thursday or Friday. There can be good gains to make just as there were just below the elections.
4450-4500 may give resistance to the rally initially and 4300-4220 will provide the support area.
Weekly resistance for Nifty will come at 4460 and 4540. Weekly supports are 4300-4220-4050.
The expectations now before the budget are exactly opposite to what they were before the elections. That time it was pessimism where everyone was expecting a hung parliament. Markets were positively surprised and we all know what happened thereafter. The worrying factor this time round is the optimism.
It would be good for the markets if they in the 4200-4500 area this week. That ways, at least the downside will be limited if there is disappointed from the budget. However, if we are going to rally higher this week, the fall would also be severe on disappointment from the budget.
Options will obviously command a higher premium this week. One can look to buy a Straddle on Thursday or Friday. There can be good gains to make just as there were just below the elections.
4450-4500 may give resistance to the rally initially and 4300-4220 will provide the support area.
Weekly resistance for Nifty will come at 4460 and 4540. Weekly supports are 4300-4220-4050.
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