We have seen range bound trading in Nifty and Bank Nifty though traded with negative bias as profit booking take place. The selling pressure in the IT & Pharma heavyweights was considerably destructive at one point of time during the session, that index sneaked below the 8150 mark. On the contrary, Auto & PSU Banking stocks outperformed especially Tata Motors. Sensex edges down 58 points; still ends May as Asia's best performer.
On the global front, European indices like FTSE (-0.02%), CAC (-0.24%) and DAX (-0.24%) were trading with limited loss while the time the report was made.
The Asian Indices like NIKKIE (+0.97%), HANGSENG (+0.89%) and SHANGHAI (+3.21%) displayed positive trend in today’s session.
On the currency side, the price action in the pairs indicated a positive trend for the domestic INR. Dollar Index continue to rise up while seen panic in EURUSD. Our currency pair strategy in USDINR and EURINR proven great. Now revise stop loss in Dollar Index below 94.80.
Technical Outlook
In line with expectation, Nifty future has resistance at 8230 mark and support level of 8120. With today’s price action, Nifty formed a bearish engulfing candlestick pattern, indicating breather at higher levels. Readers should note that, a ‘Doji’ candle followed by a bearish ‘Engulfing’ candlestick pattern, occurring at a key resistance zone gives hint of an imminent intermediate top. As mentioned earlier, due to last week’s sharp up move, intraday momentum indicators are trading in overbought zone and daily momentum indicator is showing negative divergence. Besides that multiple resistances are placed around 8230 levels. On the flipside, immediate support is placed at 8120 below which, correction can be seen to 8050---8020 levels.
Remember... Trend looks highly positive and positional traders can try to get a chance to buy Nifty future in panic around 8000---7900 with stop loss below 7650 on closing basis. Target intact 9100--9200+ mark in coming weeks.
FII’s Activity
Cash Market: FII’s turned out to be a seller in today’s session. They sold 115 cr. in the equity markets; whereas DII’s bought 60 cr. Consequently, in the month of MAY, FII’s have sold 392 Cr. in the cash segment, while huge buying activity has been seen from DII’s. They bought 7171 Cr. This overall statistic suggests that, this month there was a net inflow of almost 6780 cr.
F&O Segment: On the Derivative front FII’s continue with their buying stance, they bought to the tune of 232 cr. Buying activity witnessed on Index Futures front, they bought worth Rs. 599 cr. with a marginal fall in open interest, (short liquidation along with long additions). At the same time, they sold 63 cr. in the Index Option (fresh long in CE along with fresh short in PE). While, they sold 254 cr. in the Stock Futures (added fresh short positions).
Index Option Tracker
For the current series, the Call PUT concentration is at 8400 strike CE with an open interest of 36.79 lakh shares. On the other hand, highest PUT base is at 8000 strike with 59.74 Lakh shares.
In this series, CE options added 15.31 Lakh shares in open interest with a rise in price; on the other hand PE option added of 11.20 Lakh shares in open interest with a rise in price.
The highest open interest activity was observed in the 8200 -- 8500 strikes CE with an open interest of 1.41 cr. shares, on the flipside highest PE activity was seen in 7900 -- 8000 strikes to the tune of 96.48 lakh shares in open interest.
The 8400, 8500 & 8600 strikes CE added 4.16, 5.71 & 4.20 Lakh shares respectively; while on the put side addition was seen 8000 strike added to the tune of 6.04 Lakh shares.
Whereas, unwinding was seen in 7800 strike CE to the tune of 1.34 lakh shares, on the other hand 7700 strike PE witnessed unwinding of 1.59 Lakh shares.
Just trade with levels only. More will update during market hours.
Today's Top Pick
Hope you all are holding long in SBI. Clearly indicated to buy above 200 mark. Still we are holding long in it.
Today we will bet on Axis Bank in cash segment. Above 520... we will see rally till 532---538+ mark.
Support at 510.
More will be update soon!!
