23 May 2016

NIFTY OUTLOOK FOR 24 MAY 2016

“SELL TATASTEEL FUTURE BELOW 314.40 TG 313.20,311.20 SL 316.90”
“BUY IDFC 47.50 CALL @0.50 TG 0.90,1.40”

NIFTY closed at 7739 with loss.Nifty future below 7820 facing strong supply from market and heading towards 7600.For tomorrow market trend will remain bearish ,strategy remains buy at support but only for intraday.
Nifty intraday support 7685 and 7660 while on upper side7740 and 7790 are strong resistance levels only for intraday
Nifty is likely to hover at 7700-7950 levels in coming days, but could see a relief rally if Federal Reserve and Brexit do not make any move
The Nifty50 ended a volatile week with a negative bias on Friday and is now trading well below its crucial support levels, which is a sign that the bears could took the charge . If the index fails to bounce back this week, it could mark the make or break point for the index, considering the fact that the market is trading close to key support levels. The Nifty50 was trading just below its crucial support level at 7,800 on Monday and fresh Call writing at strike prices 7,700, 7,800 and 7,900 will make it difficult for the bulls to move higher in a hurry, options data showed on Friday.

In Call options, strike prices 7,800, 7,850 were active and saw addition of fresh positions, while unwinding was seen in the Call options of strike prices 8,200 and 8,000.

Fresh Call writing was seen at strike prices 7,700 Total Call open interest of nearly 100 lakh contracts at strike price 8,000 will act as a ceiling for the market on the upside, followed by strike price 7,900, which holds 80 lakh contracts, and strike price 8,100, which holds a total open interest of 60.49 lakh contracts.

In Put options, some OI addition was seen at strike price 7,650, while unwinding was seen at strike price 7,700. In the current series, the maximum OI was seen in the Call option of strike price 8,000
Foreign institutional investors (FIIs) sold in equities worth Rs 744 crore while, they were marginal seller in index futures leading to a fall in OI, indicating a blend of long unwinding and short covering

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