Taking clues from weak global markets, domestic indices opened with negative gap of more than 3% in yesterday’s session and on lower side nifty tested 10300 levels. However, from those levels short unwinding pullback was seen across the board that helped indices to recover some of the early losses and close around 10498 levels with loss of almost 168 points.
- From lower levels, short unwinding was seen in nifty and bank nifty fut. whereas Nifty IT fut saw profit booking from higher levels.
- Fresh short positions were added in auto, cement and pharma sector. Major addition was seen in stocks like grasim, sreinfra, icicipruli, jisljaleqs, tatamotors and lupin.
- Long unwinding pressure was seen across the board and overall stock fut shed more than 9.50 Cr. shares in OI. Major booking was seen in stocks like ubl, torntpower, tataelxsi, beml, biocon and pcjeweller.
- Mindtree, escorts, srtransfin, jet airways, oil and ramcocem were some of the selected stocks that saw long buildup.
After last 3 days of sharp correction, today markets will open on positive note on back of strong global indices but on higher side nifty will continue to see stiff resistance around 10640-10680 levels. For short term markets momentum looks weak and this pullback can be used to exit from trading long position and initiating fresh shorts. On lower side close below 10500 can trigger another downward move than can drag nifty towards 10300- 10150 levels in short term.
Script Action Initiation Target SL
HCLTECH SELL Around 966 940 978
DISHTV BUY Around 73 80 70
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