Market out look dated 28th June June 2018

Market out look dated  28^th  June   June   2018

Market Trend :

 Nifty finally break down support level 10694 resulted selling pressure across the board and closed below   more selling pressure in coming sessions.

As we are continue writing this column upper side resistance visible at 10800 and 10850 and support nearly 10700  which was a trading range of 150 points of last 10 trading sessions and finally it has broken successfully and closed  with a massive loss of 90 points at 10671 .Short term trend have been change due to global ques, strength in Crude and trade war between China and USA.  Over all time to avoid any long side and intra day any rise which is likely happened today trade as FO expiry to descent opportunity to short side.  Avid any long and wait for downside consolidation in near term.   Remember our stop loss  long  10694 and below we are bearish mode and created short position in Index

Nifty Spot :

 As Nifty finally broke down trading range and closed below 10700 mark.  Now we may consider any intra day rally to sell side, with consider resistance 10694 to  10750 which is a major supply zone and decent opportunity to short side, on the lower side down side target open towards 10533 whereas 100 DMA placed thereafter 10432 whereas 200 DMA placed.  Rise to sell side, do not try to long side in Index.

Now time to sell side with stop loss 10750-10811, down side open towards 10533 10459 or 10182  possible. Trend reversal only above 10850.

Bank Nifty Future :

   Bank Nifty Future hwoever, maintained their support level 26250-26300 range and almost closed26427 range but not supported by Nifty.  Sooner or later it will also come down as all front line banking stocks are in bearish mode and yesterday in some selling pressure long unwinding seen in HDFC Bank which is the last bet for Bank Nifty.

We have seen higher level continue selling pressure and unable to cross and sustained above 26750-26800 range. Now we mayconsider support 26250  and below some weakness towards 26000-25900 whici is a last leg of support level, thereafter be prepare for big fall in coming days. Trend reversal only above 26800  on closing basis.

Strategy  : Sell on rise strategy with consider resistance 26500-26540 range and remain below down side open towards 26300 26200-26000 likely

FO QUES  :

   Highest Put at  10700-10600

Highest call seen at 10900-11000

Call Writing seen at -10800-10700

Up side restriction as per Option data towards 10700-10750

 Long Side:   Auropharma, TCS, Hexaware, Tech Mahindra Mind Tree

Short side :      M&M Finance, Shriram Finance, Tata Motor Marico, Ida, Ashok Leyland, Jet Airways, Indigo Bharti and Hindalco.

Short Covering  :     HDFC Bank, Sun Pharma, Biocon.

Long Unwinding   :   HINDUSTAN ZINC

PSU BANK INDEX

Selling pressure continue in all PSU bank which is lead by SBI, Bank of Baroda, Indian Bank, Bank of India , Union bank and OBC. Over all selling pressure continue at higher level with consider resistance 2850-2880 range and remain below  down side open towards 2724 and below.   Consider major resistance 3135  till not cross and closed above do not think any revival of PSU Bank stock

PHARMA INDEX

As last one month we have seen strong bounce back from the low of 8019 to made a high 9470 and almost double top formation made on chart, however, trend have been changed after a 2 years of lean period and likely 2018 and 2019 will out perform and long term investor can  accumulate front line stocks for horizon of 2 years for decent return say 100 percent above. Further please also remember that on July 2017 we havepredicted bottom out of IT Index nearly 10000 mark and almost 12 month month period it has gained more than 4500 points and likely the same will be repeat in Pharma Index.    So any dip to buy side.

More details and entry level call

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