17 February 2016


“BUY NIFTY ABOVE 7175 TGT 7220/7260 “
                                     “SELL NIFTY BELOW 7060 TGT 7020/6980”
The Sensex opened at 23,237, touched an intra-day high of 23,434 and low of 22,924. It finally ended with a gain of 190 points at 23, 382. The Nifty opened at 7,059 hitting a high of 7,117 and low of 6,961, before ending with a gain of 60 points at 7,108. Nifty closed on a bear note at 7048. So today on upside first resistance is at 7093-98 level. Next resistance are at 7139-44, On downside first support is at 7002-97 level. Next support are at 6956-51, Market is in bear side .So today on upside intra resistance are at 7098 and 7144 level .On downside be alert below 6997 and avoid all intraday longs below 6951 level .The market surrendered most of the gains made in the recent rally. The index closed even below the 7050-mark, which at least I was not anticipating.
It was total capitulation by the bulls in the late session. The put option writers hurriedly scurried for cover. While at one point of time the fresh addition of open interest (OI) above 2 million units for strike prices from 6900 through 7100, at the end it was a little over 6.25 lakh units. More revealing picture comes through the 7100-call option for February series, it has added 866025 units and the last closing price had been only 60.80—this means these call option writers are ready to carry the call option sold position for a cover of up to the level of just 7161 for the Nifty. In fact, call option writers had been hyperactive: 7200-strike call added more than 1.44 million units.
Situation is rank bad—it suggests that prospect of further serious damage looms large going forward. It looks as if the last weekly closing level of 6980 is taken out it could be headed for a range between 6816 and 6667. Now, it is more likely that all intraday rallies would get sold off.

Resistances: 7150, 7200, 7350

Supports: 7000, 6950, 6890

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