Re: Derivatives Strategist 09 SEPTEMBER 2011

Market Outlook

 

Nifty future continued its positive momentum and moved up towards 5175 levels. On option front, maximum Put OI is at 4700 followed by 4800 strike and fresh writing seen at 5000 strike while maximum Call OI is at 5200 followed by 5300 strike. If Nifty future sustains above 5150 levels then it may move up towards 5200 levels. On downside if it fails to hold 5100 levels, then selling pressure may get intensified in the market towards 5050-4900 levels.

 

Buy Deltacorp and Sell JSWsteel

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First Morning Technical Call_09092011

Market Outlook:

S&P CNX Nifty has major resistance around 5195 and failing to cross that level in couple of days would invite profit booking as rally from 4720 in 7 trading days has given 9% rally. Nifty today trading below 5125 will show weakness, but nifty for trend reversal has to break previous day low 5098 till then uptrend can be on track. Nifty on weekly basis is 2^nd week of gain if today we close above 5040, after 5weeks of selling 2-3weeks of rally is normal. Market has turned stock specific and few Infra stocks has gained from F&O settlement IVRCL +40%, BFULTILIES+33%, JPASSOCIATE +30%, NCC+24%, IRB+22%, LITL+21%, PATELENG+21% and there are chances that these stocks would outperform market in this month. Stock in shipping building ABGSHIPYARD, BHARTISHIPYARD and PIPAVYD are showing strength along with FERTILZER stocks RCF-NFL-CHAMBAL-GSFC.

 

 

Sensex- has started showing signs of tiredness and 17295-17355 is very crucial level for Sensex failing to cross that profit booking and selling pressure would start below 17k and closure of Gap-up levels (16894-16922) is important support levels. Sensex till 16890 below close is not seen no major weakness, But as this is bear phase rally market normally never gives chance to exit so have position manageable levels.

 

 

Technical Calls:

 APTECH Cmp Rs.130 has formed a pole & flag formation and stock breaking above Rs.134 could target Rs.156-165 and on downside Rs.115 is a strong support and once break-out happens Rs.122 would become strong support. Stock trades above all major moving average with 20DMA Rs.125, 100DMA Rs.109 and 200DMA Rs.111.

 

HINDUNILVER Cmp Rs.324, Stock has made triangle formation near all time high Rs.348 and stock is forming a rounding bottom formation. Stock looks strong to target Rs.348-359 & 372 in next few months and we have a technical target of Rs.400 above for the stock. Stock trades above all major averages with 20DMA Rs.318, 100DMA Rs.313 and 200DMA Rs.300.  Stock holding Rs.310 on closing basis is very positive for the stock.

 

  Technical View: ONGC-261, Stock looks very weak on charts trading near 24 months low of Rs.248, breaking which Rs.220 below levels would become possible levels in months to come. This PSU stock has FPO around 22^nd September after which we have seen stocks normally correcting and becomes a gross underperformer for many months to come. Stock trades below all major moving average 200DMA Rs.287, 100DMA Rs.280 and 20DMA Rs.273.

 

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