Hi, What a dramatic day it was. BNF rebounded from previously tested low (Lower limit of S2 range 30,700 -30640, as I had written in yesterday's post) and staged a smart recovery of around 400 points to high. What about tomorrow? Will the upmove continue? Lets' examine.
FII final figures show net selling in all the 3 segments- Equity, Index futures and Stock futures. Provisional figures show Net selling by DIIs worth 444 Crs. This means that in latter part of the session, DIIs bought heavily in all segments. Also due to Nifty/ BNF weekly expiry, it seems, some short covering did push both the indices up. Option chain analysis might not be helpful since we start next weekly series tomorrow.Lets look at charts. Nifty bounced back from 11,817 (20 DEMA) and BNF bounced back from 30640 (Previously tested lows on 31st May and 7th June). One thing is clear- 11800 acted as very strong support for Nifty which we hoped during option chain analysis yesterday. So on those lines 12000 is also going to be diificult to cross. But my sense is that since it is coming up from 20 DEMa which is strong support, the upmove might continue tomorrow as well. My levels therefore for NIFTY stay same. Resistances at 11960 (to 11,970) and 11990 (to 12,000). Safe buying levels if it dips, are between 11,840 - 11,817. Stop Loss below 11800 and target at resistances given above. For BNF, aggressive buying levels are between 30,790 to 30,740; Safe buying can be done between 30690 & 30640. Stop Loss at 30600 and first target at 31230. That's it for now. Happy trading. All the best.
FII final figures show net selling in all the 3 segments- Equity, Index futures and Stock futures. Provisional figures show Net selling by DIIs worth 444 Crs. This means that in latter part of the session, DIIs bought heavily in all segments. Also due to Nifty/ BNF weekly expiry, it seems, some short covering did push both the indices up. Option chain analysis might not be helpful since we start next weekly series tomorrow.Lets look at charts. Nifty bounced back from 11,817 (20 DEMA) and BNF bounced back from 30640 (Previously tested lows on 31st May and 7th June). One thing is clear- 11800 acted as very strong support for Nifty which we hoped during option chain analysis yesterday. So on those lines 12000 is also going to be diificult to cross. But my sense is that since it is coming up from 20 DEMa which is strong support, the upmove might continue tomorrow as well. My levels therefore for NIFTY stay same. Resistances at 11960 (to 11,970) and 11990 (to 12,000). Safe buying levels if it dips, are between 11,840 - 11,817. Stop Loss below 11800 and target at resistances given above. For BNF, aggressive buying levels are between 30,790 to 30,740; Safe buying can be done between 30690 & 30640. Stop Loss at 30600 and first target at 31230. That's it for now. Happy trading. All the best.