Nifty : Nifty opened at 5195.60 below its support of 5200 and made a low of 5164 and close at 5215 with an intraday gain of 20 points. Markets exhibited resilience on Friday trading session despite negative news flow from euro zone and managed to post a positive close for week after three weekly loosing streaks. The resistance gap of 5270 still remains major challenge for Nifty to test before final confirmation of make or break has been confirmed.
August has started on a strong note, gaining more than 2.3% in the first week. Despite important global events, it showed resilience and bounced back from lower levels. Nifty is closing between 5200-5250 from last 4 trading sessions and tested 5200 level twice and bounces back strongly so 5200 is acting as a strong support for Nifty.
Nifty range for next week would be 5130-5356. Support for the bank nifty is seen at 10200 below which
we expect another round of selling in bank nifty.
Key Break Out Levels for Nifty :
Buy Nifty(Spot) above 5283 T1: 5319 T2: 5356 T3: 5392 T4: 5429 T5: 5466 T6: 5503 SL: 5166
Sell Nifty(Spot) below 5166 T1: 5130 T2: 5094 T3: 5058 T4: 5023 T5: 4987 T6: 4952 SL: 5283
INDIA VIX : Continued its declining pattern and closed negative for the third consecutive week. The index is likely to remain within the range of 15-19, suggesting the Nifty may continue its consolidated move
Options : 5000 Put continues to command the highest OI of over 10 million shares, making this level a critical support for the index. Highest OI is at 5400 and 5500 Call strikes ofover 7 million shares each. Buying was seen in 5300 call option, while put writing was seen at 5100 and 5000 strike which we fell migth act as support for the week.
FII's Activity : FIIs remained net buyers for the week on Cash segment as wel as Index future. In Last few days FIIs bought more than `2bn in Index options.
Any positive signals from the Euro zone can provide comfort and support to the markets which remain on tenterhooks. Corporate results will continue to flow in bringing in the necessary action in those particular stocks. As far as key data points are concerned the IIP numbers would be keen awaited on Friday. Globally too various data points will provide some cues on the current state of affairs. The month of August is not really known for much gains or pains. At best we could remain in a tight range for sometime. In short, the coming week will continue to swing more to the global cues than any domestic affair.
Nifty Spot High 5377.60...Booked 50% at TG2 5356 and rest Trail Cost to Cost.
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