CREALTH NIFTY VIEW
Nifty closed at 9980 which is exactly the make or break level as 9980 was a strong resistance as Nifty had multiple top as this level and the highest OI (Open Interest) build up was also at 10000 CE. So if we are able to sustain above 10000 on Monday then we will see huge short covering which may take Nifty to 10100-10150.Though the coming week will be crucial in terms of global market as Nifty will take direction from there. The rising dollar and US bond yields are an alarming signal for equity markets though global markets closed at almost record highs last week. So the make or break levels will be 10000 on the upside and below 9935 we may see longs shed which may take Nifty to 9800-9830.
Gyan Word – Open Interest
Open interest is the total number of outstanding contracts that are held by market participants at the end of each day. Open interest measures the total level of activity into the futures market. Open interest is commonly associated with the futures and options markets, where the number of existing contracts changes from day to day – unlike the stock market, where the outstanding shares of a company’s stock remain constant once a stock issue is completed. However, the term “open interest” is also sometimes used to refer to the number of buy market orders that exist before the stock market opens.
CREALTH SECTORIAL VIEW
Bank Nifty is facing strong resistance at 24257 as it’s the 50 day EMA. Though Bank Nifty has formed a Hammer at lower levels which will act as a support to the bulls. Once Bank Nifty closes above 24250 it can move upto 24500 which is the next resistance. On the downside if Bank Nifty closes below 23800 then it would be signs of worry and it can move down to 23500. As Private banks are expected to post good results and the earning season is starting from Tuesday it would be interesting to see what Bank Nifty does.
Nifty Metals, Nifty IT, Nifty FMCG are the three other sectors which looks good with the rising price of metals, dollar & GST benefits to the FMCG sector. As Nifty Mid Cap, Small Cap index has lead the last rally hence it better to invest/rely on heavyweights rather than small, mid caps as any correction in global markets will be badly affecting the above two indices.
STOCK SPECIFIC VIEW
Bullish Stocks – ITC, ONGC
Bearish Stocks – Amaraja Battery, Glenmark Pharma
CREALTH SUGGESTION TO TRADERS & INVESTORS
Our suggestion to all traders will be to stay light on long positions & hedge their positions by shorting the index if they take a long position in a stock. As the global markets are at all time highs and a small trigger can trigger a big sell off it is better to stay cautious & hedge your position as their can be a sudden gap down any day & no one will get time to cut their position on SL! Our suggestion to investors is to stay away from mid, small cap stocks & have cash in hand to enter at lower levels as one correction is stills awaited and one will get quality stocks at lower levels. So sit like a hawk to enter at lower levels and don’t just jump at current levels as more pain can be seen ahead!
Disclaimer – All the above writings are just a technical view, research! Every person should do their own research before investing/trading. Our clients may have position in the above mentioned stocks!
Note: The article/calls and advice are subject to caveats. Postman News doesn’t bear any losses on these advices as such.