24 May 2016

NIFTY IN UPTREND LEADING TO POSITIVE F&O EXPIRY ON THRUSDAY

Tatasteel call  given in last post  achieved first target and almost hit  the second target.

Indian Stock Market would open Negative. Technically, Indian Stock Market is still in negative zone. Now, 7715 levels would be an important closing levels to watch out for. Nifty if closes below 7715 levels then next target for Nifty would be 7678-7600 for Nifty and 16200 levels for BankNifty. Traders should continue holding short positions and should initiate further short positions for every positive rally in the market. Sensex ended with a gain of 75 points at 25,305. The Sensex opened at 25,519 touched an intra-day high of 25,340 and low of 25,181.
The Nifty closed with a gain of 28 points at 7,759. The  Nifty opened at 7,738 hitting a high of 7,761 and low of 7,715. After registering losses for four straight sessions, markets closed positive in today’s trade as investors accumulated quality stocks at valuable and attractive levels. Strength in European equities further uplifted the mood at D- Street.
The Nifty futures contract started the session on a negative note and continued to trend lower. Immediate resistance is at 7,750 which can cap the upside. A test of 7,700 is possible.
A strong break below 7700 this target can drag the index futures lower to 7,680 and 7,650. Such a break will also keep the contract under pressure for a fall to 7,600.If the index futures manages to reverse higher from 7,700 once again and touches 7,750, the downside pressure can ease. The contract can then trade within a range of 7,700 and 7,800.It is currently stuck in a narrow range. Support is at 7,750 and resistance is at 7,800. A strong breakout on either side of these levels will decide the next direction of move for the contract. Traders can wait on the sidelines until the breakout gives a clear trade signal.
A strong break below 7,700 will increase the downside pressure and drag it to 7,650. Traders can go short on a break below 7,700 with a stop-loss at 7,750 for the target of 7,650.
On the other hand, a decisive break above 7,775 will ease the downside pressure and take the index futures higher to 7,835 and 7,850 thereafter.
Strategy: Go long on a break above 7,775 with a stop-loss at 7,730
Supports: 7715,7700,7675,7606

Resistances: 7816,7830,7865,7888

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