morning thoughts...
Last thursday we were intimating of a possible bullish crossover for nifty 10850 and bank nifty 26650-26700 but again a sign of caution at those levels as it may not get supported by market breadth and few concerns still haunts the global and domestic markets
From past 3 months the index is following a range of 10550-10850 for nifty and 26100-26800 for bank nifty , within that range it moves up one day and down the another day with repeat episodes , so if practically seen there is no new levels for index and the broader markets still inches lower with poor breadth closer to 12% , the moment it closes below or moves below 10% we may see large caps correcting which have been supporting index from many days
Now we are moving into results season and its the moment of volatility for the markets
As per technical charts of the index , we have informed on thursday that a probable bullish crossover will be seen for the index and we are on the verge of the same , so will it breakout and see the channel break for targets of 11100 for nifty and 27200 for bank nifty..?
The midcaps and small caps have corrected severely in last few months and owing to weaking rupee , rising crude , trade war issues and korean tension volatility and uncertainty prevails with the dryness of 100 millions USD and lack of fii money , will it trigger a global correction and nifty move to 9800 and bank nifty 25000...?
As per friday charts of nifty , we are not posting the chart as interpretation is important than a picture, lets simplify the charts of friday for you all
The nifty tried to make a bullish crossover at 20 dema highs of 10820 and saw a correction from those levels on intraday basis and closed below 10800 with maximum oi addition at 10900 and 10800 with 3.26 lacs contracts at 10800 and 1.50 lacs contracts at 10900 levels , now what does that means..?
It means that traders and people are viewing 10800 as important level and resistance than 10900 as previous has almost double call writers - so this level may be taken as a resistance zone
Now if we come to put writers - we may see some interesting facts and see writers at multiple levels of 10600 , 10700 , 10500 and upto 10400
Now its surprising to see writing at 10400 levels which means that there are people and traders who think and believe that nifty may dip to 10400 and this is what charts and option chains are suggesting and saying , we are not saying anything - its what fridays index charts are saying
Now if we see the nifty chart of daily charts and 7 dema we will find mediocre trendline candles with longer heads and not much shadows of higher side nor lower side which now indicates that ist stop of call writer will act as support for the markets which is 10700 and only below that oi for put writers will be respected
This now gives a clear indication of probable range bound trade for the markets and only on break of this channel , expect a 400-500 point move for the markets for nifty and 1500 for bank nifty
On weekly charts the nifty has managed to make higher lows and higher highs which suggest an upmove in the coming session on monday with attempt of 10850 and 26700 but again we would like to see minutes candles and volumes for further move as this levels may be used for distribution and dispersion
As on tuesday 10 july important astrological changes takes place which will be in high effect till 17 july - crucial moves and incidents seen during those period
The markets are giving a beautiful oppurtunity to trade between the range along with broader markets and it must be used accordingly
Coming to the commodity markets no much analysis is viable as bullions remain rangebound with negligible trading oppurtunity but a buy on dips strategy is best suited in same
Base metals have seen a sharp correction following the trade war and will continue to be a sell on rise
Energy on the other hand is providing the best oppurtunity and the strategy for crude and natural gas remains to be a buy on dips
Stocks to watch
Nifty and bank nifty as per strategy mentioned above
Sell icici bank , vedanta on a rise or gap up
Buy tata steel 560 pa
Buy tcs 1800 pa
Buy drl 2300 ca
Buy gold , silver , crude
Buy copper , mentha oil , nickel
Last thursday we were intimating of a possible bullish crossover for nifty 10850 and bank nifty 26650-26700 but again a sign of caution at those levels as it may not get supported by market breadth and few concerns still haunts the global and domestic markets
From past 3 months the index is following a range of 10550-10850 for nifty and 26100-26800 for bank nifty , within that range it moves up one day and down the another day with repeat episodes , so if practically seen there is no new levels for index and the broader markets still inches lower with poor breadth closer to 12% , the moment it closes below or moves below 10% we may see large caps correcting which have been supporting index from many days
Now we are moving into results season and its the moment of volatility for the markets
As per technical charts of the index , we have informed on thursday that a probable bullish crossover will be seen for the index and we are on the verge of the same , so will it breakout and see the channel break for targets of 11100 for nifty and 27200 for bank nifty..?
The midcaps and small caps have corrected severely in last few months and owing to weaking rupee , rising crude , trade war issues and korean tension volatility and uncertainty prevails with the dryness of 100 millions USD and lack of fii money , will it trigger a global correction and nifty move to 9800 and bank nifty 25000...?
As per friday charts of nifty , we are not posting the chart as interpretation is important than a picture, lets simplify the charts of friday for you all
The nifty tried to make a bullish crossover at 20 dema highs of 10820 and saw a correction from those levels on intraday basis and closed below 10800 with maximum oi addition at 10900 and 10800 with 3.26 lacs contracts at 10800 and 1.50 lacs contracts at 10900 levels , now what does that means..?
It means that traders and people are viewing 10800 as important level and resistance than 10900 as previous has almost double call writers - so this level may be taken as a resistance zone
Now if we come to put writers - we may see some interesting facts and see writers at multiple levels of 10600 , 10700 , 10500 and upto 10400
Now its surprising to see writing at 10400 levels which means that there are people and traders who think and believe that nifty may dip to 10400 and this is what charts and option chains are suggesting and saying , we are not saying anything - its what fridays index charts are saying
Now if we see the nifty chart of daily charts and 7 dema we will find mediocre trendline candles with longer heads and not much shadows of higher side nor lower side which now indicates that ist stop of call writer will act as support for the markets which is 10700 and only below that oi for put writers will be respected
This now gives a clear indication of probable range bound trade for the markets and only on break of this channel , expect a 400-500 point move for the markets for nifty and 1500 for bank nifty
On weekly charts the nifty has managed to make higher lows and higher highs which suggest an upmove in the coming session on monday with attempt of 10850 and 26700 but again we would like to see minutes candles and volumes for further move as this levels may be used for distribution and dispersion
As on tuesday 10 july important astrological changes takes place which will be in high effect till 17 july - crucial moves and incidents seen during those period
The markets are giving a beautiful oppurtunity to trade between the range along with broader markets and it must be used accordingly
Coming to the commodity markets no much analysis is viable as bullions remain rangebound with negligible trading oppurtunity but a buy on dips strategy is best suited in same
Base metals have seen a sharp correction following the trade war and will continue to be a sell on rise
Energy on the other hand is providing the best oppurtunity and the strategy for crude and natural gas remains to be a buy on dips
Stocks to watch
Nifty and bank nifty as per strategy mentioned above
Sell icici bank , vedanta on a rise or gap up
Buy tata steel 560 pa
Buy tcs 1800 pa
Buy drl 2300 ca
Buy gold , silver , crude
Buy copper , mentha oil , nickel
