2 July 2014


It looks like that much talked about pre-budget rally, it is finally here in anticipation of a strong pragmatic Budget. Both the Sensex and the Nifty rose to their fresh lifetime highs in trade today, Sensex rallied over 230 points to hit its fresh lifetime high of 25749 in trade. Tracking the momentum, the Nifty index also managed to rally over 60 points to hit its fresh record high of 7700, supported by gains in banks, capital goods, The market breadth indicating the overall health of the market was strong due to having expectations of a growth oriented Budget. The index was paused for sometime but today it looked as it is just about to move up again in today’s session with a strong momentum to begin with. Today nifty future started at 7709 made a high of 7758 and low of 7702 and closed at 7748 total 56 points was moved by nifty future. Today the level of 7000 was decisively taken out by nifty future, but it was not having so much movement. Tomorrow once the Nifty gets past 7750 and stays above than we can expect it to scale up and test the supply pressure around the level of 7750. Between 7700 and 7729, it could face considerable supply overhang but once this zone is taken out decisively, we are likely to see further up moves that would help it cross levels between 7700 and 7850 going forward. Unless the index closes below 7580, all intraday dips could well see the bulls creating fresh positions at lower levels.
Bank nifty also crossed it’s decisive level of 15500. Today Bank nifty started at 15540 made high of 15644 and low of 15465 and closed at 15596, total 179 points was moved by bank nifty. The level of 15500 is one significant level for the day that has the potential to tell you what you can expect from the tomorrow session. If the index will stay above this level for any significant length of time attracting fresh position build up then be certain that the Bank Nifty is in for a strong upsurge. It will try to touch the new heights, the expected level from bank nifty will be 15700-15800 However, any half-hearted attempt like yesterday would be a sign of another round of sell-off awaited again. Going by the overall positive sentiment this may not be the case while a strong up move is one that might be just round the corner. On the downside, in case of any profit taking, this index is likely to get good support 15250 and 15200. Only if you see it closing below 15280, consider the upward momentum to have totally dissipated.
More about intraday tips on Google +
RESISTANCE: 7730, 7760, 7790
SUPPORT:  7700, 7670, 7640

No comments:

Post a Comment