29 July 2015


The market treaded steady on Wednesday with the Sensex higher by 104 points at 27563 and the Nifty gaining 38 points at 8377.  Markets snapped a four-day losing streak to end higher on Wednesday led by gains in IT shares while upside gains remained capped on caution ahead of the expiry of July derivative contracts tomorrow and outcome of the two-day US Fed meet which ends later today. The 30-share sensex  ended up 104 points at 27563 and the 50-share Nifty ended up 38 points at 8375. The market benchmark Sensex on Wednesday recovered from over one-month lows by rising 104 points to 27563 as investors preferred to create positions in IT, capital goods and auto stocks ahead of F&O expiry on Thursday. For most part of the day, the Sensex and Nifty traded in a range bound fashion. The Sensex touched high of 27470 and low of 27609 and the Nifty moved in a range of 43 points. Analysts said that the markets traded in a tight range as stock specific trading was seen ahead of derivative expiry for the month of July which is due tomorrow.
The rebound in the Chinese stock market boosted sentiment. Meanwhile, the language of the US Fed meet which ends later today is vital which would signal its stance on interest rates. Further, the Nifty July series is likely to expire around 8400 levels.
We tend to think that unless 8321 through 8279 support area gets broken, further downside would be capped and a pullback rally could well happen. However, unless you see a recovery taking out the Nifty levels between 8407 and 8413, no pullback would have the ability to post a short term reversal. Only when this range is decisive cleared, we are likely to see the bulls getting some initiative back.
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RESISTANCE: 8400, 8450, 8500
SUPPORT:  8350, 8300, 8250           

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