Business News Desk – Giving strategy on Nifty, CNBC-Awaaz’s Virendra Kumar said that the first resistance is at 23697-23749 while the major resistance is at 23811-23866 (20 DEMA)/23903. The first base is at 23352-23461 while the larger base is at 23167-23188-23258. Virendra Kumar said that Nifty broke yesterday, sell trade worked well, it closed at the low levels of the day. FII selling increased further, they are selling below 200 DEMA. Net short of FIIs now stands at 2.67 lakh contracts. The condition of banks which were the target of FIIs remained bad, HDFC Bank, ICICI Bank, SBI.
It is difficult to say how the market will take TCS’s results but the placement of the stock is negative. He further said that Call writing was seen at 23600-23700-23800 zone, Put writing was seen at 23500 and then 23200. Today’s important level is 23697-23749, if it is crossed then 23811-23866 zone will be found. Sell in every pullback below the first resistance. If it slips below 23461 then 23258-23352 is possible. Trade with caution, today is Friday. Nifty’s 50 WEMA is at 23461.
strategy on nifty bank
Virendra Kumar said that the first resistance is at 49819-50097 while the major resistance is at 50359-50440/50644. The first base is at 48910-49113 while the bigger base is at 48510-48677.
Virendra Kumar further said that yesterday the selling trade in Nifty Bank was good, it has broken till the last base. Banks are the target of FIIs for selling, most of the banks have slipped below 200DEMA. Call writing in 49500-50000-50500 zone, we are quite oversold but below 50 WEMA. It is quite weak below 49819-50097 (50WEMA). Trade with caution in this oversold zone.
He further said that sell only in pullback below 50097. 49000 Put has high OI since last few days, do check trade here. If it slips below 48910 then 48510 can be tested. Pullback is possible only above 50097.
