7 April 2016


“SELL BANKNIFTY FUTURE BELOW 15550 TGT 15500/15400 SL 15610”
“BUY RELIANCE FUTURE ABOVE 1054 TGT 1059/1068 SL 1042”
The market turned volatile after starting off trade on a strong note. Domestic benchmark indices the Sensex and Nifty 50 opened the session on a positive note and started to decline. The indices extended their losses, breaching key supports.  After going through a choppy session in the previous day and just managing to eke out marginal gains, the Indian equity market lost heavy ground on Thursday.  Sensex declined to a three-week low as investors reassessed the outlook for equities after last month’s rally and before the start of the company earnings season next week. The Sensex and Nifty slid nearly 1 per cent on Thursday as investors continued to book profit in the recent outperformers ahead of result season which is expected to remain weak. The Sensex ended with a loss of 215 points at 24685 The Sensex opened at 24998 touched an intra-day high of 25013 and low of 24647.
The Nifty started the session on a negative note at 7630. After hitting an intra-day high at 7631, the contract resumed its down move. It breached a key support at 7600 and recorded intra-day low at 7536 before trimming some of its losses. The contract witnesses selling pressure at higher levels. Make use of rallies to initiate fresh short positions with a stop-loss at 7,630 levels. Continuation of the downtrend can pull the contract down to 7530 and 7500 levels. A decisive fall below 7490 can drag the contract down to 7450 and 7430 in the near term. On the other hand, a strong rally above 7640 is needed to strengthen the bullish momentum and take the contract upwards to 7760 and then to 7680. Immediate resistance is at 7700.
Valuations are still high if you consider that the March-quarter is likely to see single digit earnings growth. Last month’s rally was pull-back rally, which is typical of a bear market. We’re advising investors to raise cash.
Strategy: Make use of rallies to initiate short positions with a stop-loss at 7630 levels.
SUPPORTS: 7550 AND 7500

No comments:

Post a Comment