Market Strategy

Market Strategy

  

NIFTY

Nifty is likely to consolidate around 11400 levels in the coming week. The highest Put base has remained at 11400 strike for major part of this series and the index is expected to remain around these levels for sometime. Nifty range for the coming week is expected to be 11350-11550. The volatility is still hovering near the key resistance of 14%. The moment it starts moving lower, it would be positive for the market. Nifty Futures open interest has come down from 30 million shares to 28 million shares since the last series on account of closure of long positions. In addition, certain outperforming segments in the market like FMCG has also seen long liquidation. If Nifty starts forming a base above 11000 levels, slowly the money will start flowing into such spaces.

The Nifty is likely to consolidate around 11400 in the coming week. The highest Put base has remained at the 11400 strike for a major part of this series. The index is expected to remain around these levels for some time. The Nifty range for the coming week is expected to be 11350-11550

 • Volatility is still hovering near the key resistance of 14%. The moment it starts moving lower, it would be positive for the market • Nifty futures open interest has come down from 30 million shares to 28 million shares since the last series on account of closure of long positions. In addition, certain outperforming segments in the market like FMCG have also seen long liquidation. If the Nifty starts forming a base above 11000, slowly the money will start flowing into such spaces

 • The pharma space, which was a late mover, can still participate in the up move. Some pharma stocks are exhibiting good short covering patterns. In addition, the market is expected to become more stock specific. Certain stocks that were under performing so far can start witnessing pullbacks 

Bank Nifty: Index likely to consolidate with positive bias.

Volatility in the currency market remained extremely high throughout the week. As US$INR appreciated from level of 73, a reversal was also seen in the Bank Nifty from 26700. The index rallied nearly 500 points from the lows with stocks like Kotak Mahindra Bank, HDFC Bank and Axis Bank providing cushion. Participation was also seen in midcap stocks like IndusInd Bank.

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 • Despite the index falling nearly 1000 points from the highs, no major addition was seen in open interest. However, as the index reversed from 26600, marginal addition was seen in OI with a rise in price indicating buying interest is coming at lower levels. The current leg of covering can be on the back of fresh long additions

 • As the index moved above 27000, Call blocks were seen in 27200 strike followed by 27500 Call. The index has been consolidating near 27200. We feel a close above these levels is likely to take the index towards its sizable Call base of 27500. However, in case of a correction, Put writers of 26900 are likely to provide a cushion.

 • The current price ratio of Bank Nifty/Nifty remained near 2.37 levels. Multiple support was seen near 2.36 levels. Hence, we feel a reversal can be seen in select banking stocks, which are likely to provide the required push to the index in the coming days.

MORE WILL UPDATE SOON!!