Nifty futures reflected an OI of 24 million in the morning but then once 5670 levels were taken out, another 1 million were added in Nifty futures and towards 5690, another 0.8 million came in taking the cumulative OI to 25.8 million and then some profit booking came in taking the OI down to 25.5 million. This is the 2nd consecutive day that Nifty has stayed above 5608. As expected, Banknifty also paved the way for the upside and profit booking was seen towards 11425 levels and it closed a few ticks below 11400; LnT also paved the way for the upside and the real performing star of the day was Bharti Airtel in the top Nifty 50 stocks posting an intraday high of 4% over previous close.
As of now, the expiry target still remains within the 5600-5690 zone and some downside will come to crush the calls which are gaining a lot at the moment. A retest of 5480-5532 zone is pending and we can expect those to come in after July expiry. The volumes are still not large enough to trigger major upsides or for that matter even hold 5690 on EOD basis. However, an intraday visit to the month's high once cannot be ruled out.
Safe to short Nifty at current levels with a hedge of August 5700 CE and further shorts should be opened only after the 5608 level is breached on the downside. For Banknifty, 11350-11425 still remains a preferred shorting zone but with the RBI announcements coming in, one may consider hedging the shorts with an August 11500 or 11600 series Banknifty Call; due to its illiquid nature, Banknifty Options don't lose time value so easily even if your primary position is going your way so the hedge will be useful. On the other hand, if the primary position goes against you, the 11600 Banknifty Call will gain enough to offset the MTM losses on the shorts.
The crucial levels remain the same
For the Downside: 5408-440-5532-5580
For the Upside: 5608-5655-5690-5740
Bulls can only get stronger with 2 consecutive closes above 5740
Bears can only hope to inflict primary damage below 5608 and then below 5532
It has been 5 weeks in a row now that markets have been well above 5408-5440 levels. This zone can be considered a firm bottom until Diwali if Nifty manages to stay above this zone on EOD basis until 10th August
On a stock specific move, Bharti Airtel is showing signs of temporary topping out and one can safely go for the Shorts via August Futures @ CMP or August 400 PE with a Stop Loss of 445 on the spot price.
For a longer term horizon, Tata Motors is looking good at current prices and one can expect a 15% to 20% return in a 6 month time period [please have a look at the charts and rather than investing entirely, invest in tranches to the extent prices are below 1000]
Crucial Dates for August Nifty Calendar
6-Aug / 9-Aug / 12-Aug / 18-Aug / 22-Aug / 26-Aug /30-Aug
Anticipated price action against these dates will be posted after July expiry
As of now, the expiry target still remains within the 5600-5690 zone and some downside will come to crush the calls which are gaining a lot at the moment. A retest of 5480-5532 zone is pending and we can expect those to come in after July expiry. The volumes are still not large enough to trigger major upsides or for that matter even hold 5690 on EOD basis. However, an intraday visit to the month's high once cannot be ruled out.
Safe to short Nifty at current levels with a hedge of August 5700 CE and further shorts should be opened only after the 5608 level is breached on the downside. For Banknifty, 11350-11425 still remains a preferred shorting zone but with the RBI announcements coming in, one may consider hedging the shorts with an August 11500 or 11600 series Banknifty Call; due to its illiquid nature, Banknifty Options don't lose time value so easily even if your primary position is going your way so the hedge will be useful. On the other hand, if the primary position goes against you, the 11600 Banknifty Call will gain enough to offset the MTM losses on the shorts.
The crucial levels remain the same
For the Downside: 5408-440-5532-5580
For the Upside: 5608-5655-5690-5740
Bulls can only get stronger with 2 consecutive closes above 5740
Bears can only hope to inflict primary damage below 5608 and then below 5532
It has been 5 weeks in a row now that markets have been well above 5408-5440 levels. This zone can be considered a firm bottom until Diwali if Nifty manages to stay above this zone on EOD basis until 10th August
On a stock specific move, Bharti Airtel is showing signs of temporary topping out and one can safely go for the Shorts via August Futures @ CMP or August 400 PE with a Stop Loss of 445 on the spot price.
For a longer term horizon, Tata Motors is looking good at current prices and one can expect a 15% to 20% return in a 6 month time period [please have a look at the charts and rather than investing entirely, invest in tranches to the extent prices are below 1000]
Crucial Dates for August Nifty Calendar
6-Aug / 9-Aug / 12-Aug / 18-Aug / 22-Aug / 26-Aug /30-Aug
Anticipated price action against these dates will be posted after July expiry
No comments:
Post a Comment