Monday, July 6, 2009

DAILY REPORT ON NIFTY BY kadiyali - 06.07.09 (Monday)

Running Views on Nifty Futures.

10.30AM...Nifty Futures opened today just flat at 4427 against its previous close of 4424, and is currently trading at 4446. It has so far recorded a HIGH of 4462 & a LOW of 4427. Asian cues are negative, US futures too are in red, and there is a strong possibility of European markets opening in negative today. Locally, we have our Union Budget being presented, which the market has been expecting to be negative for the market. Only an out of the box surprise budget can save nifty today. If the budget proves to be non-starrer, nifty will fall very badly today. Further a pendulam like volatality will be witnessed during the entire period of budget presentation, hence it is better to stay away from intra day trades today. Nifty is likely to take full 2 days to absorb the positives/negatives of the Budget.

2.00PM...NF after touching a high of 4482 just before the presentation of the budget, started sliding down, down & down, and has touched a new low of 4176, amd is now at 4202. Union Budget was an ordinary budget, not great but not bad too, but definitely a non-starrer. And nifty tanked very badly as indicated in my 10.30AM report. Nifty is likely to fall below 4000 within the next 2-3 days.

3.30PM...Nifty futures after touching a final low of 4121, closed the day at 4161, down 263 points, its biggest single day loss in 2009.

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NIFTY OUTLOOK

A normal budget without any out of the box surprise elements was presented today, and the result was as expected, and Nifty tanked very badly, and closed the day at 4166, down 258 points, its biggest single day fall in 2009. FIIs net sold a whopping 1483cr & DIIs net bought 816cr. Nifty now having breached its intraday low of 4143 recorded on 23rd June, is all set to achieve its near term target of 4050.
Nifty levels for 07.07.09 Tuesday are: PIVOT 4259, R1 4385 & R2 4605, S1 4039 & S2 3913.

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