As outlined in my earlier post, any developments on FPI surcharge, IIP data and falling Rupee will will guide how market moves tomorrow. Now add one more factor to it, Reliance Industries results or rather Reliance announcements as I would call it. Market will react favourably to Reliance results and since it has considerable weightage, it might push Nifty up.
1) On friday, provisional figures show FIIs and DIIs both as net buyers and final figures show FIIs as Net Sellers in only Equity but net buyers in Index and stock futures. So it was overall net buying by FIIs that saw pushing Nifty's day- high and day-low.
2) Options chain analysis- On PUT side, highest total OI (16.40 lakhs) is at 11000 but fresh highest Put writing (12.30 lakhs) is seen at 11100 with total OI as 13.50 lakhs (2nd highest). So 11100 and 11000 both offer good supports. On Call side, total highest OI (20.30 lakhs) and fresh highest Call writing (10.82 lakhs) both are seen at 11200, so it can be taken as immediate Resistance. As per option chain data, thus, realistic range is 11000 to 11200 for tomorrow.
3) On charts, yesterday's high of 11181 represents a credible resistance. Now actually tomorrow, Reliance's results might push Nifty up and other factors like poor IIP data, Ruppee fall and inaction on FPI surcharge could take Nifty down. It just can't be said where the tussle will end. So I have marked upper (Sell) limit and lower (buy) limit, where Reward-to-Risk (RR) ratio is good. You can take these trades with a SL of around 30 points. At this moment DJIA is showing 248 points down which is around 1%. So if this remains the way it is, negative bias from global markets may be there at the openning of market.
1) On friday, provisional figures show FIIs and DIIs both as net buyers and final figures show FIIs as Net Sellers in only Equity but net buyers in Index and stock futures. So it was overall net buying by FIIs that saw pushing Nifty's day- high and day-low.
2) Options chain analysis- On PUT side, highest total OI (16.40 lakhs) is at 11000 but fresh highest Put writing (12.30 lakhs) is seen at 11100 with total OI as 13.50 lakhs (2nd highest). So 11100 and 11000 both offer good supports. On Call side, total highest OI (20.30 lakhs) and fresh highest Call writing (10.82 lakhs) both are seen at 11200, so it can be taken as immediate Resistance. As per option chain data, thus, realistic range is 11000 to 11200 for tomorrow.
3) On charts, yesterday's high of 11181 represents a credible resistance. Now actually tomorrow, Reliance's results might push Nifty up and other factors like poor IIP data, Ruppee fall and inaction on FPI surcharge could take Nifty down. It just can't be said where the tussle will end. So I have marked upper (Sell) limit and lower (buy) limit, where Reward-to-Risk (RR) ratio is good. You can take these trades with a SL of around 30 points. At this moment DJIA is showing 248 points down which is around 1%. So if this remains the way it is, negative bias from global markets may be there at the openning of market.