The market is expected to open on a weak note today;
traders are advised to assume short positions if Nifty fails to
hold 5750 levels with a stop loss placed at 5820 levels for
downsides of 5700 and 5640 levels. Alternatively, long positions
can be assumed if Nifty finds support at 5640 levels.
The breadth of the market declined to 228:954
suggesting selling pressure prevailed in mid -cap and small-cap
stocks as well. Nifty Futures have witnessed fresh build up of
short positions; Nifty December futures have added 7 lakh
shares in open interest with premium shrinking to 2.80 points
from 24.10 points. On the options front Nifty call options have
witnessed buying while, put options have seen short closure
shuggesting market to remain highly volatile with a downward
bias .
HOT PICKS - GTL INFRA,UNICHEM LAB,BHARATI TELE,KAUSHALYA INFRA
We have a Cautiously Bullish view on Reliance. We recommend a Protective Put strategy:
o Buy One Reliance Dec Fut @ 2790-2800
o Buy One Reliance Dec 2800 PA @ 55 – 60
o BEP: 2860
o Investment: Rs.80,000 (Approx)
o Time Frame: 8-10 Days