After a sluggish day yesterday, things looking slightly better today. Its said whenever it rains in Mumbai, market goes up! It’s been pouring since last evening in Mumbai and that should cheer up NIFTY a bit today. Dow jones had a 41st record high closing and NIFTY has been making all time highs since 2 days. Will it continue today? Most likely yes! NIFTY will open around 10,150 levels today and on the upside 10,200 is the resistance! If you had taken a long position at 10,130 yesterday, you can close your position if it reaches 10,200 levels. If you have not taken a position yesterday then you might have to wait for a dip today that might come at 10,120-130 levels and can go long.
FIIs are 45% short in F&O market and that is the highest in the last 5 months. That means any move above yesterday’s high of 10178 means a short covering trigger that will surely take NIFTY to 10,200 levels. 10,200 is just couple of trades away and you can safely bank on it! The options data also suggest more upward trend than downward. On an average 6 puts are sold for every 1 call and thats taken the PCR to 1.62. This is reaching over heating zone and unless there is some call buying this might persist. There is shorting of puts happening at 10,100 and 10,050 levels indicating that 10,050 is emerging as a strong support now. Premium eating on call side started at 10,200 level indicating 10,200-240 as a resistance zone for the NIFTY. So, 10,050-10,240 could be the expiry range for this series.
On the other news
ICICI Lombard IPO is subscribed 3.1x times and thats a huge relief. SBI Life IPO opens today and it could be an instant sell out. Meanwhile the interconnectivity Usage charges have been slashed to 6 paise from 14 paise per call and thats a huge negative for all the telecom companies except Jio. Airtel, Vodafone and Idea will be badly hit and Jio will hugely benefit. There will be a 4% impact on the EBIT of Airtel because of this and Idea could be as high as 7%. That means huge negative for the telecom companies and see some red on them. Meanwhile expect Reliance to have a huge jump at the start!