WATCH Negative Divergence in RSI
Nifty continued the northward journey in yesterday’s trade too
as it opened on a strong note and registered yet another all time
high. However, the higher levels witnessed profit taking and
buying was w itnessed in the index heavy weights . The breadth
ended on a flat note at 577:565 implying mixed performances
across the board. Nifty Oct futures premium decreased
marginally to 7.30 points while the Nov futures has seen
addition of 2 lakh shares in open interest on the back of
decreasing cost of carry implying addition of speculative short
positions around the highs . On the options front put options
have seen long addition while calls have seen closure of short
positions suggesting caution around the highs . With Infosys
quarter results announcement pre-market; it is expected to have
a large bearing on the market direction. The markets are likely
to open on a positive note today; traders are advised to adopt
buy at dips strategy. Long positions may be assumed if Nifty
holds above 5500 levels. Else, trade in two ranges of 4360-
4440 and 4440-4500 levels .
We have a moderately bullish view on SBI. We recommend Bull Call Spread strategy:
o Buy One SBI Oct 1950 CA @ 78-80
o Sell One SBI Oct 2040 CA @ 58-60
o BEP: 1970
o Tgt: 2040
o Investment: Rs.1,00,000 (Approx)
o Time Frame: 5-6 days
JUST GRAB RAJESH EXPRTS AND PANTALOON
Hero Honda Looks good for 100 rs target upside
INFOSYS TECHNOLO will go down from these level (C-2125.05): Looking Strong: Buy around 2109.0 Target1-2158, Target2-2191:Support1-2076-Support2-2027