25 January 2016


“BUY NIFTY FUTURE ABOVE 7440 TG 7470, 7500 SL 7400” 
“SELL BANKNIFTY FUTURE  BELOW 15490 TG 15410, 15300 SL 15550”
Strategy: Go short at 7,480 with a stop-loss at 7,505
Choppy day!!! Lack of movement was there in the market today due to the expiry week of future & option January contract which will be on Thursday jan 28, 2016. The Sensex and Nifty pared some of their gains on Monday and closed on a flat note on account of selling in frontline blue chip stocks taking cues from European counterparts. The sentiments also came under pressure after Moody’s poll stated that the greatest challenge facing the Indian economy is exposure to external shocks such as interest rate hike in the US and slowdown in China and the risk has risen since last year. Sensex closed 50 points up at 24485, while Nifty 50 index settled 13 points up at 7436. The Sensex opened at 24541, touched an intra-day high of 24651 and low of 24434. It finally ended with a gain of 50 points at 24486. Nifty settles below 7450 level. The Nifty opened at 7469 hitting a high of 7487 and low of 7421, before ending with a gain of 14 points at 7436.
The Nifty 50 futures contract failed to gained momentum after opening the week with a 40 point gap up. The contract is stuck inside a range between 7435 and 7485. Key resistances are at 7485 and 7500. Only a decisive break above 7500 will boost the sentiment and take the contract higher. As long as the contract trades below 7500, it is likely to remain range bound between 7400 and 7500 for a few sessions. A breakout on either side of 7400-7500 will give a clear cue on the next leg of move.Immediate support for the contract is at 7440. A break below this level can drag the contract lower to 7420 and 7400 today. Traders can wait for the contract to bounce back and go short near 7480. Stop-loss can be kept at 7505 for the target of 7430.
Tomorrow no trading session will be there on accounts on Republic day (26 January)
More about intraday tips on Google +
Supports: 7,440, 7,420
Resistances: 7,485, 7,500

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