If this IIP and inflation numbers would have posted in era of UPA government NIFTY would have fallen by 100 points.
Rate cut possibility will not be there for at least one year. GDP target for 2014 is difficult to meet. Rupee is depreciating everyday and crossed 61 mark and before month end it could touch 62. Global concerns are still around but both FIIs and DIIs are buying in Indian markets, and today NIFTY sustained gains backed by good volume.
From option data, huge addition of 7700 PUTs just before long weekend proves that traders are convinced that at least for next few days NIFTY will not go below 7700 or considering premium it will not go down below 7640.
All this indicates bull run is to stay for few more days. See chart, it has to cross key resistance 7770-7792 tomorrow, and it could happen with the help of gap up opening. One may see lot of volatility during final hour, before long weekend and for a safe trader, it is better to stay away from NIFTY tomorrow.
One more important observation, in bull run, whenever there is trading holiday in India like August 15, SGX NIFTY is being traded and invariably it gains at least 100 points. As a result, first day after trading holiday sees gap up opening of 100 points.
So with this calculation, you might see NIFTY touching 7950 on Monday morning.
Do not short in this market. Only look for buying opportunities. Though everything is based on mere hope, let us not hope against hope and think NIFTY will reach 7200 anytime soon. In spite of lack of participation from mid-cap and small-caps today, NIFTY managed to end day in green. NIFTY used IIP data for consolidation. Today Bank NIFTY (BN) did not participate, in fact beaten down but tomorrow (Thursday) could be different and one can see 100 points rally in NIFTY backed by BN.
Of course, this is just one view and more or less consensus on street, and generally markets rarely follow consensus!
But still only advice could be, go long in this market, till NIFTY stays above 7650 (+ 20 points as buffer) on a closing basis.
Bull spread strategy in NIFTY
Buy 7800 CALL around 48 and sell 7900 CALL around 18.
Maximum loss about Rs. 1500/- whereas profit potential around Rs. 3500/-
Exit the strategy if NIFTY trades below 7620 on EOD basis till August 20.
Disclaimer: This blog does not take any responsibility of your profit/loss
Rate cut possibility will not be there for at least one year. GDP target for 2014 is difficult to meet. Rupee is depreciating everyday and crossed 61 mark and before month end it could touch 62. Global concerns are still around but both FIIs and DIIs are buying in Indian markets, and today NIFTY sustained gains backed by good volume.
From option data, huge addition of 7700 PUTs just before long weekend proves that traders are convinced that at least for next few days NIFTY will not go below 7700 or considering premium it will not go down below 7640.
All this indicates bull run is to stay for few more days. See chart, it has to cross key resistance 7770-7792 tomorrow, and it could happen with the help of gap up opening. One may see lot of volatility during final hour, before long weekend and for a safe trader, it is better to stay away from NIFTY tomorrow.
One more important observation, in bull run, whenever there is trading holiday in India like August 15, SGX NIFTY is being traded and invariably it gains at least 100 points. As a result, first day after trading holiday sees gap up opening of 100 points.
So with this calculation, you might see NIFTY touching 7950 on Monday morning.
Do not short in this market. Only look for buying opportunities. Though everything is based on mere hope, let us not hope against hope and think NIFTY will reach 7200 anytime soon. In spite of lack of participation from mid-cap and small-caps today, NIFTY managed to end day in green. NIFTY used IIP data for consolidation. Today Bank NIFTY (BN) did not participate, in fact beaten down but tomorrow (Thursday) could be different and one can see 100 points rally in NIFTY backed by BN.
Of course, this is just one view and more or less consensus on street, and generally markets rarely follow consensus!
But still only advice could be, go long in this market, till NIFTY stays above 7650 (+ 20 points as buffer) on a closing basis.
Bull spread strategy in NIFTY
Buy 7800 CALL around 48 and sell 7900 CALL around 18.
Maximum loss about Rs. 1500/- whereas profit potential around Rs. 3500/-
Exit the strategy if NIFTY trades below 7620 on EOD basis till August 20.
Disclaimer: This blog does not take any responsibility of your profit/loss
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