Yesterday we had a fall and recovery and yesterday we were looking as if 12000 would be attempted one more time. Nothing much has changed except that the range that I talked about got shifted 50 points upwards. If you have shorted the Nifty in the morning, you would have made tour money.
The close yesterday was almost at the same place where we closed on Monday and as of now it looks like 12000 is the resistance that Nifty will not be able to climb that easily. Globally things are not looking that positive as Dow Jones fell more than 250 points and that has given a weak handover to Asia and if you look at Asian markets, most of them are trading in mild red with Hong Kong and Japan both down between 20-40 points. SGX Nifty as a result is trading 40 points down as I write this.
On the domestic front, Q2 results of Wipro were good with margins comes above estimates and revenue guidance of 1.5 to 3.5%. The company also offered a buyback and after TCS, Wipro coming up with good numbers is going to be positive for the IT sector. Now we are all set for Infosys results today and a positive Infosys number will due to much more positivity in Nifty.
HDFC which will come up with its Q2 numbers over the weekend will give us a hint of how the banking sector is likely to do. Added to this there is a hope of another stimulus package awaited from the Govt, and that also will add to the sentiment. For now, 11800 is strong support for any movement downwards and 12000 is the resistance and unless there is a change in fundamentals 12000 is difficult to break on the upside.
On the derivatives front, Yesterday we saw a neutral action on both Futures and Options and though there was some selling seen in Futures in the initial part of the day, the buying offset the selling after 1 PM. Options also saw a similar action and the Nifty put call ratio remained stagnant at 1.40.
For tomorrow’s expiry 12250 call added 8.2 lakh positions while 11950 call added 5 lakh positions and 12200 call added 4.7 lakh positions. 12000 call has the highest OI on the call side followed by 12200 call. On the put side, 11900 put added 5.2 lakh positions while 11800 put added 4.4 lakh positions and 11600 put added 3 lakh positions and 11800 put has the highest OI on the put side making 11800-12000 as the range for tomorrow’s expiry unless something drastic happens.
What is the Nifty call for the day?
In line with other Asian markets, we are going to open a bit down around the 11900-11920 mark and 11880 should come as support. Just see if Nifty can hold this. If it does then 11950-11980 on the upside is possible.
Like yesterday, today also a short trade should be taken for 40-60 points profits either above the 11900 mark or at 11880 mark with 11800-11820 as the target. You can look at targets anywhere between 11800-11900 depending on where you take a short position.