WEEKLY REPORT ON NIFTY BY kadiyali - 08.08.09 (Saturday)

WEEK GONE BY

Though Nifty traded above 4700 for the first 4 days of the week, it could not secure a close above its strong resistance of 4725 on any of these days, and finally ended up closing the week near week's low of  at 4481, down 155 points.  It traded the week in the range of 4463 to 4731. The high of the week was 4731 touched on Tuesday and the low of the week was 4463 recorded on Friday. The fact that nifty touched 4723, 4731, 4717 & 4718 on the first 4 days but was confronted with huge supply around this level should not be ignored during the next few days.

WEEK AHEAD

As Nifty failed to secure a close above its strong resistance of 4725 the whole of this week, bears undoubtedly received an upper hand & brought down nifty by more than 200 points in two days. Now bears will make nifty Sell On Rise till 4725 is taken out by the bulls on a closing basis.

Nifty is likely to trade RANGEBOUND for the next week consolidating in  a small range of 150 points. Trading range for the week is likely to be 4500-4650. However, nifty will post a positive close for the week.

STRATEGY FOR THE WEEK

1. If you are long, it is undoubtedly the time to reduce the load,  booking profits on every rise.

2. If you are short, hold on to the same & start adding puts when  nifty starts trading above 4650.

STOCK RECOMMENDATIONS

In my last Weekly Report, I had suggested liquidation of stocks in order to take advantage of an expected deep correction to 3900-4300 levels. With the unexpected fall this week itself, the nifty range for the remaining period of August looks to be 4400-4700, with the chances of breaching the lower band more than the upper band, due to monsoon deficiency & fall in Chinese market. So book your profits in the portfolio so as to have a cash balance of at least 50% of the Portfolio size.

OPTION RECOMMENDATIONS

1.In my last Weekly Report, I had recommended 4900CE below 65 for a target of 135, and to convert the profits into 4500PE. Though this call option gave some good intraday gains for first 3 days, the target did not materialise, and the call option is now at CMP of 25. It is now recommended to get out of this option nearer to buy price OR hedge the same with 4500PE below 100.

2. Watch the premium of SAIL puts 160PA (LTP 5.70). BUY SAIL 160PA below 4 for a target of 10.

IMPORTANT (Announcement by Priya Suresh, Manager, Fiftypointsaday)

We at fiftypointsaday had announced last week starting of an exclusive blog for option trading, which will be open for members only on an invitation.  The blog named KADIYALI OPTIONS will start on 12.08.09, and we have already received a good response for the membership. Only a few slots are available now, and all those who enroll for membership before 31.08.09 will get the Early Bird advantage. Those who are interested may contact by email to fiftypointsaday@rediffmail.com early.

DAILY REPORT ON NIFTY BY kadiyali - 07.08.09 (Friday)

Nifty Futures Morning Call

11AM...Nifty Futures opened today at 4554 against it previous close of 4578, and is currently trading at 4536. It has so far recorded a HIGH of 4581 & a LOW of 4520. Asian cues are negative, US futures are in red, and European markets may open in negative today. Nifty will trade today in negative throughout the day, and may even fall below 4500 intraday, but will recover towards the end to close either flat or in negative with minor loss. NF may trade in the range of 4480-4590.

Trading Calls

11.16AM...BTST CALL: BUY Reliance Communications below 263 today for a target of 290.

12.36PM...RCom now at 262. The above BTST Call triggered. BUY for a target of 290 with a SL at 257.90.

12.43PM...NF CALL: BUY Nifty Futures below 4499 for a target of 4550.

12.57PM...STOCK OPTIONS: BUY RCom 270CA now at 11.80 for a Target of 20 next week.

1.05PM...NF now at 4493. The above 12.43PM call triggered. BUY NF for a target of 4550.

Market Closing Report

3.30PM...Nifty fututures closed the day at 4467, down 111 points, after touching a low of 4465. Morning high of 4581 remained the high of the day.

NIFTY OUTLOOK

Nifty continued its downward journey for the second day today, and closed far below its support level of 4550, ending the day at 4481, down 101 points. FIIs net sold 1051cr & DIIs net bought 414cr. Nifty having broken its support of 4550 has passed on the advantage to bears, and until & unless its strong resistance of 4725 is taken out as a closing basis, bears will continue to dominate the trade in the days to come.

Nifty levels for 10.08.09 Monday are: PIVOT 4512, R1 4561 & R2 4640, S1 4433 & S2 4384.

DAILY REPORT ON NIFTY BY kadiyali - 06.08.09 (Thursday)

Nifty Futures Morning Call

11AM...Nifty Futures opened today at 4682 against its previous close of 4705, and is currently trading at 4673. It has so far recorded a HIGH of 4682 & a LOW of 4651. Asian cues are mixed, US futures are flat, and European markets may open in positive today. Nifty will trade in negative today for the first 2-3 hours of trading, will get back into positive thereafter, and will end the day in positive above 4700. NF is likely to trade in the range of 4630-4740 today.

Trading Calls

2.41PM...NF now at 4639. Go LONG. SL 4591. Target 1 - 4689.  Target 2 - 4719.

2.51PM...NF now at 4590. Stop Loss of above trade is triggered. Sorry.

Market Closure Report

Nifty future closed the day at 4585, down 120 points, after touching a high of 4730 & a low of 4552.

NIFTY OUTLOOK

Nifty stopped its surge beyond the tough resistance zone of 4710-4730 for the fourth day today, and ended up losing heavily to close the day at 4585, down 109 points. FIIs net sold 371cr & DIIs net bought 257cr. Nifty has now landed just above its crucial support level of 4550-4580, the maitenance of which is absolute necessity for the bulls to sustain the current rally.

Nifty levels for 07.08.09 Friday are: PIVOT 4621, R1 4683 & R2 4780, S1 4524 & S2 4462.

DAILY REPORT ON NIFTY BY kadiyali - 05.08.09 (Wednesday)

Nifty Futures Morning Call

11AM...Nifty Futures opened today at 4677 against its previous close of 4679, and is currently trading at 4653. It has so far recorded a HIGH of 4713 & a LOW of 4642. Asian cues are negative, US futures too are in red, and European markets may open FLAT today. Nifty will trade today both in positive & negative alternatively, and will end the day in negative again with minor loss. NF is likely to trade in the range of 4590-4713 today.

Market Closing Report

3.30PM...Nifty futures closed the day at 4696, up 17 points, after touching a low of 4622 & a high of 4721.

NIFTY OUTLOOK

Nifty traded today in both positive & negative alternatively and finally ended in positive, at 4694, up 14 points. FIIs net sold 690cr & DIIs net sold 24cr. Nifty for the last 3 days has been consolidating in 4600-4700 range, with support at 4620 & resistance at 4730, looking for a break out soon beyond 4700.

Nifty levels for 06.08.09 Thursday are: PIVOT 4680, R1 4730 & R2 4767, S1 4643 & S2 4593.

DAILY REPORT ON NIFTY BY kadiyali - 04.08.09 (Tuesday)

Nifty Futures Morning Call

11AM...Nifty Futures opened today at 4709 against its previous close of 4670, and is currently trading at 4676. It has so far recorded a HIGH of 4709 & a LOW of 4670. Asian cues are positive, US futures are in red, and European markets may open flat today. Nifty will trade today RANGEBOUND, and end the day in negative with minor loss. NF is likely to trade in the range of 4620-4710 today.

Market Closing Report

Nifty futures closed the day at 4676, down 38 points, after touching a high of 4715 & a low of 4635.

NIFTY OUTLOOK

Nifty, after last 3 days of surge,  traded rangebound today & finally closed the day at 4680, down 31 points. FIIs net bought 219cr & DIIs net bought 253cr. Nifty is now all set to convincingly surge beyond 4700, after which short covering will aid further rise of nifty.

Nifty levels for 04.08.09 Wednesday are: PIVOT 4685, R1 4727 & R2 4774, S1 4638 & S2 4596.

DAILY REPORT ON NIFTY BY kadiyali - 03.08.09 (Monday)

Nifty Futures Morning Call

11AM...Nifty Futures opened today at 4658 against its previous close of 4636, and is currently trading at 4647. It has so far recorded a HIGH of 4662 & a LOW of 4623. Asian cues are positive, US futures are flat but in green, and European markets may open today flat. Nifty will trade subdued & rangebound for the first half of the trading session, will pick up the momentum in the second half, and end the day in positive. NF is likely to trade in the range of 4610-4690 today.

Market Closing Report

Nifty futures closed the day at 4729, at the day's high, after touching a low of 4612 & high of 4730.

NIFTY OUTLOOK

Nifty continued its surge for the third day in succession, closing the day above 4700 for the first time in 2009, at 4711, up 75 points. FIIs net bought 347cr & DIIs net bought 61cr.  Having succeeded in closing above its 12th June intraday high of 4693, nifty will now proceed to achieve its immediate target of 4850. However, drop of  volume with the rise in idex should call for caution.

Nifty levels for 04.08.09 Tuesday are: PIVOT 4684, R1 4750 & R2 4790, S1 4645 & S2 4578. 

WEEKLY REPORT ON NIFTY BY kadiyali - 01.08.09 (Saturday)

WEEK GONE BY

Nifty continued its uptrend for the third week after its big fall in the post budget week, and closed the week near high at 4636, up 68 points. Trading range for the week was 4420 to 4669. The high of the week 4669 was touched on Friday and the low of the week 4420 was recorded on Wednesday.

WEEK AHEAD

Having secured a positive close for Nifty for the last 3 weeks, bulls will continue to dominate the market,  and Nifty will be able to post gains for at least 3 of the 5 trading days of next week. Nifty will close the next week also in positive but with minor gains. Trading range for the week is likely  to be 4580-4810.

STRATEGY FOR THE WEEK

1. If you are long, continue to ride on your longs but do note to book profits once nifty goes past 4800. 

2. If you are short, next week will give you very anxious moments, and you may not be able to get a decent exit for the whole of the week, as nifty is unlikely to trade below 4580.

3. Accumulate nifty puts 4400PE once nifty goes past 4800.

STOCK RECOMMENDATIONS

Nifty is likely to touch a high of 4810 for the next week, and also to reach a target of 4900 anytime thereafter. However as the quarterly results season is almost over & there is no other positive trigger for the market in next 2 months, the days of bulls may be numbered very shortly. It will be prudent to book profits in whatever shares we hold now, and wait for a deep correction to 4300-3900.

OPTION RECOMMENDATIONS

Watch the premium of nifty call 4900CE (CMP 77) & nifty put 4500PE (CMP 109).

BUY 4900CE below 65 for a target of 135. Upon achieving the target, SELL and take out your money, invest the profits in 4500PE at the rate prevailing at that time, which is likely to be equal to the profits gained from 4900CE trade. Keep the 4500PE so bought for a target of 150.

IMPORTANT: (Announcement by Priya Suresh, Manager, Fiftypointsaday)

We at Fifitypointsaday, will start shortly an exclusive OPTION BLOG for trading in Options. Membership to this Option Blog will be only on an invitation. Those who are interested may email to fiftypointsaday@rediffmail.com early.