NIFTY TODAY
Today nifty broke the 4800 levels and managed to close above this level. Volume was rather good. Market breath was negative with 2 advances and 48 declines. FII’s were net sellers for 1464.19 crores. DII’s were net buyers for 406.12 crores. Technically a wide range black candle had formed.
NIFTY TOMORROW
As nifty open interest had increased by 2 ½ times with price decline suggests that fresh shorts had added. In addition FII’s were heavy sellers which suggest that bears have great control over the market. For tomorrow trade 4757 and 4850 levels would be significant levels to be watched.
To my knowledge I have two views; first, as FII’s were sold heavily, open interest had increased and nifty had broke the crucial support level 4850 we may see a sharp correction, which may take nifty to 4650 levels.
Second, as the open interest in nifty futures had increased with price decline, would any positive news come tomorrow, and then short covering may take nifty to 4950 levels. Let’s see what happens tomorrow.
NIFTY TIPS
BUY ABOVE 4830 T1- 4860, T2 – 4890, T3 – 4920 STOPLOSS – 4816
SELL BELOW 4816 T1 – 4790, T2 – 4757 T3 – 4732 STOPLOSS – 4830
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