11 April 2016


“SELL BANKNIFTY FUTURE BELOW 15850 TGT 15800/15750 SL 15905"
“BUY 1 LOT HINDALCO 95 CALL @ 2.4 TGT 3.90/5.2"
It was a fantastic start to the truncated week as Nifty struck a ton while the Sensex galloped over 300 points. Indices recouped earlier losses to end with strong gains tracking positive global cues. The Sensex ended with a gain of 348 points at 25022. The Sensex opened at 24798 touched an intra-day high of 25050 and low of 24423. The Nifty closed with a gain of 116 points at 7671. The Nifty opened at 7578 hitting a high of 7679 and low of 7517.
Nifty April futures staged a smart recovery to settle near 7700 levels. Nifty continues to remain stuck within the range of 7750-7550. Nifty needs to convincingly break past multiple resistances placed between 7745-7780 for further upside.
Open interest addition was seen with an uptick indicating fresh longs. On Nifty options chain, significant open interest additions were seen at 7600 put and unwinding was witnessed at 7700 call strike. Despite a 2% cut in previous week’s trade and over 100 points rally in today’s upswing, nothing much has changed.
Traders with a short-term perspective can buy the contract on dips with a stop-loss at 7600 levels. On the other hand, a decline below 7580 can drag the contract down to 7560.
A further fall below the level will have bearish implications and pull the contract down to 7530 or 7510 levels. Market undertone is positive but we don't expect Nifty to suprass 7950 level in near term.
Strategy: Buy on dips with stop-loss at 7600 levels.
Supports: 7600 and 7550
Resistances: 7780 and 7850

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