22 April 2016


Our prediction of downfall in Reliance met the reality today... Reliance was trading in red zone today.
Taking cues from the US indices which ended marginally on a negative note and mixed trend among Asian peers, Nifty futures started the session in the red.  The contract opened at 7895 and declined to a low of 7881. Finding support at around 7880, the contract reversed higher and is back in positive territory. It registered an intra-day high at 7941 and remains volatile. Investors looked to be keener on exiting. Unwinding of long positions and negative global cues dampened sentiments, Nifty has entered into a trading range that indicated a pause in the uptrend. Markets have turned weak with Sensex set to snap the six day winning streak as investor’s book profits at higher and attractive levels. Also, disappointing global cues have further dampened sentiments. Profit booking continued for today as well. Markets finished the session on a lower note with Sensex snapping the six day winning streak after investors booked profits at higher and attractive levels. Also, dismal global cues further dented sentiments.
The  Sensex and Nifty ended the choppy trade on a flat note on Friday with marginal losses on account of weak cues from global markets. Sensex closed 42 points down at 25838, while Nifty settled 12 points down at 7899. The BSE Sensex opened at 25892 touched an intra-day high of 25922 and low of 25772. The Nifty opened at 7892 hitting a high of 7924 and low of 7874.
Traders with a short-term perspective can make use of dips to buy the contract while maintaining a stop-loss at 7900 levels. The contract can trend upwards and test resistances at 7950 and 7970 levels. Next resistances are at 7985 and 8000.
Having said that, an emphatic decline below the immediate support level of 7,870 will strengthen the selling pressure and drag the contract once again to 7880 and then to 7850 levels.
Strategy: Make use of declines to initiate long positions with a stop-loss at 7870 levels.
Supports: 7870 and 7850
Resistances: 7950 and 7970

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