Thursday, March 25, 2010

F&O expiry to influence the Indices

NIFTY STARTS MAKING DOWNWARD SLOPS... NIFTY BIG RESISTANCE AT 5255 – !! NIFTY NEEDED CORRECTION –!!

NOVIS AND UN-MATURED TRADER OR CHINDI CHOR ANALYST + CALL PROVIDER SAY…
1. “MY FOOT – CORRECTION” OR,
2. WHAT IS CORRECTION ???

MY ANSWER ALWAYS AS – “CORRECTION IS CORRECTION AND IT’S NEEDED IN TECHNICAL TERMS…” SO WAIT FOR A GOOD AMMOUNT OF FALLING CORRECTION OR SIDEWAYS CORRECTION.”

BEING TODAY IS LAST DAY OF MARCH SETTLEMENT, SO OPERATOR AND FII BOTH TRY TO MANAGE NIFTY AT THEIR OWN LVLS COZ THIS MONTH THEY BUILD – UP HUGE POSITION IN CASH - FUTURES AND OPTIONS.

TODAY EVENING WE GET CLEAR ROLL OVER POSITION – THAT HELPS US TO VIEW CLEARER PICTURE ABOUT MARKET FUTURE.

BE CAUTION ON BUYINGS… BUY ONLY THOSE SAHARES WHICH IS FALLING IN LAST FEW DAYS AND IN THOSE SHARES WHERE CORRECTION IS COMPLETED.

1. NIFTY RESISTANCE – 5255
2. NIFTY SUPPORT - 5177

Indian markets are likely to flat on the last day of F&O expiry. Expect the benchmark index or the Sensex to trade in a band of 50 points for the day. Negative cues from the global markets might not impact the indices on D-Street, as stocks in Mumbai did not take part in the global upmove yesterday, as they were closed on Wednesday.

Oil stocks were active on Tuesday led by ONGC and Reliance. we might see some consolidation in this space following a fall in Oil prices.Oil prices settled below $81 after the data pointed to a larger-than-expected jump in U.S. crude inventories last week.

Midcap Pharma and related stocks were active and were the top gainers on Tuesday. Piramal Life, RPG Life and Suven Pharma are worth mentioning in this space. Telecom stocks like Shyam Tele and Aksh Optifibre led the gainers list.

One of our favorites, Tata Elxsi which broke the techincal level of Rs 300 last week witnessed strong buying interest helping the stock gain 8 percent to RSs337.Short term investors could look at taking positions in Emco Ltd, Sabero Organics and Micro Technologies for some decent gains