Market continues to move up, as expected it opened gap down but went up during the day. Hanging man pattern was invalidated once it crossed 6005 today during trading hours. Today it could find reason of WPI data. This rally now may not sustain long. Rupee did slide a bit but could hold around 60. However, after many trading sessions I could notice, market went up even Rupee went down. When market starts ignoring negative cues, it means there is lot of strength and even if this rally halts at around 6050-6070 zone, market may not go down much.
On the other hand FII turned seller today. Unusually high open interest is added in 6000 and 5900 PUTs. All this can not be PUT Sell and this means influential hands are buying PUTs to hedge longs. These are not good signs for bulls. PCR is very close to overbought zone, it is about 1.75 and it could show sign of reversal if it touches 1.80 during intraday.
So there are mixed cues but still what is certain is, a trend is positive for IT, Pharma and negative for metals and banks. Very soon all banks will start declaring their results and if they are not good, BankNifty will go back to 11000-11200 zone very quickly. Rate cut hopes have almost diminished and on July 30 there might be increase in interest rates.
Over last 9 months CRR and Repo have be cut by about 75 basis points each, and that has contributed in CPI to go near 10%. Curbing inflation is first target of RBI than be happy looking at lower imports of Gold in June. With all this preamble, one can go short on BankNifty.
BankNifty
Buy 11800 PUT between 180-200. SL 90.
Hold the trade for week.
TCS:
Hold strategy.
Add 1620 CALL if you get around 45-52.
Disclaimer: This blog does not take any responsibility of your profit/loss
On the other hand FII turned seller today. Unusually high open interest is added in 6000 and 5900 PUTs. All this can not be PUT Sell and this means influential hands are buying PUTs to hedge longs. These are not good signs for bulls. PCR is very close to overbought zone, it is about 1.75 and it could show sign of reversal if it touches 1.80 during intraday.
So there are mixed cues but still what is certain is, a trend is positive for IT, Pharma and negative for metals and banks. Very soon all banks will start declaring their results and if they are not good, BankNifty will go back to 11000-11200 zone very quickly. Rate cut hopes have almost diminished and on July 30 there might be increase in interest rates.
Over last 9 months CRR and Repo have be cut by about 75 basis points each, and that has contributed in CPI to go near 10%. Curbing inflation is first target of RBI than be happy looking at lower imports of Gold in June. With all this preamble, one can go short on BankNifty.
BankNifty
Buy 11800 PUT between 180-200. SL 90.
Hold the trade for week.
TCS:
Hold strategy.
Add 1620 CALL if you get around 45-52.
Disclaimer: This blog does not take any responsibility of your profit/loss
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