morning thoughts..
Once again we caught the move and rally of the nifty right at the bottom on last Friday and booked at the right spot
Bullish indications we observed on the medium to long term charts are still there while the short-term dip that we talked about is now happening. Now, we need to closely observe if the Nifty were to go down below 4950 or not. Since a fall below that would mean bulls becoming considerably weaker once again; however, suppose you notice that the Nifty does not fall below even 5050 in today’s trading.
Leo leaves Virgo to give way to Mars , an important astrological configuration which plays its part on individuals and stock markets , commodity and forex markets.One important thing that should not be missed is the movement of the NSE India VIX—the volatility indicator—it has gone down despite the sell-off in the last session. It has lost 55 basis points to close at 25.43. Once this index goes down below 24 and stays there the market would take a decisive upward turn. However, the bad news is that its US counterpart, the CBOE VIX, has moved up sharply yesterday to 33.39 gaining 515 basis points in the process. We need to closely monitor the progress of our NSE India VIX.
From a trading point of view , I would continue to maintain my stance of buying dips and high rsi stocks and for investors it’s a time to build a portfolio , one can refer to our pms services for that.The put writers, obviously, were on the back foot yesterday—open interest (OI) went down right from the 5100-strike put though the 4700-strike put. However, the reduction in (OI) was moderate: it was around 675,000 units for all of these five contracts. The call writers got enthused by the fall and ended up adding over two million units for 5100 through 5300 strikes for October series. Despite the reduction in OI, the outstanding position for Oct put options are pretty huge and same is the case for calls. The closing premium for 5100-call option suggests that the call writers (read bears) are happy with a protection up to 5190—this is validated by the call writers as a strong resistance for the market.
Support for the Nifty below 5050 would, most likely, come in between 5034 and 5016. Once this range gets broken one can expect the 5000-mark to be under serious threat. Below 5000 for the index, the supports are at 4976 and 4948.On the way up, 5102 and 5120 are initial resistance above the 5100-mark. However, strong supply zone would be between 5135 and 5153 and then between 5167 and 5188.
The supports for the nifty is at 5025 levels and resistance at 5175 levels.
The supports for the sensex is at 16500 levels and resistance at 17000 levels.
Stocks to watch
Gmdc , Ing vysya bank , petronet lng looks good on the long side.
Hcl tech , lic looks weak
Yesterdays calls sent via sms and messenger
Advance Nifty – buy at cmp 4985 sl x targets x – holding
Nifty 5200 ce – buy at cmp 84 sl 65 targets 200 – holding
Petronet Lng 160 ca – buy at cmp 1.55 sl 1 target 3 , went 3.20
Hexaware – buy at cmp 87 sl 85.50 targets 90 , went 91.20
Sail – sell at cmp 107 sl 108.50 targets 104 – hit sl
Operator Call Kpit Cummins – buy at cmp 149 sl 143 targets 170 , booked profits at 167
Fii Wockhardt Pharma – buy at cmp 432 sl 425 targets 460 , booked profits at 453
Jackpot Niit Tech – buy at cmp 207 sl 202 targets 230 , booked profits at 232
