You must read previous articles and watch the given chart carefully to
understand this article completely.
25 May 2017: -
On 24 May 2017: FII Net Bought – 81.88 INR Crs: DII Net Bought – INR – 197.31 Crs
Well, we are on derivative expiry day and market goes under effect of
Indo-Pak border tension. I am not the one who believes that it can be a reason
for selling stocks in India. It may just be a pause. Usually, June is
historically a month of high volatility. Most of the time it favours bears but
this is going to be a different June. Trading ranges are expected to open wide.
Will it favours bulls?
Only time can answer.
Derivative data suggests that we may get a technical support for today
at lower levels. Remember, banking stocks are not as weak as it looks.
For today’s session, I am expecting market to open on positive note as
indicated by SGX Nifty and then taking support. Suppose if it slips due to
derivative expiry effect then it can be a good opportunity to buy at least when
put call ratio goes around 1. Should I favour shorts on any condition? Well, if
indications come then why not but I have strong caution. Bulls market used to
deny bad news and this market is denying many bad news so we may not get
anything great for shorting on index.
Technical support 9340-9300-9270. On higher side, resistance is at
9400. Will it cross and sustain?
Sectoral performance may go on flip flop mode time to time but overall
buyers are still interested in market price. Pricing looks expensive but it is
still attracting buyers. Can we expect reversal? Well, if this happens then it
will be least expected. So far, nothing is suggesting for reversal but caution
call is always alive.
Caution note is clear – first one has to watch for weakness on small
cap and mid cap indices. Before top, there may be the days where mid cap and
small cap indices will be negative and blue-chip index will maintain flat to
positive note. I will look on small cap and mid cap index to compare relative
under performance.
Strategy for Nifty June future
– I usually do not trade near to expiry day. Right now, I am not touching
index. I am not great fan for trading long for June month but this time it may
be different June. For today, market may opening higher and then it may retrace
due to long unwinding but support can emerge near 9370 which may be suitable
zone to add long with 30 points stop loss for a bounce today in last hour or
may be tomorrow.
BANK NIFTY June future – Bank
Nifty was stable yesterday and this gave me a good hope. Suppose, if market
take U turn today and bounce from lower levels then it may be Bank Nifty which
can give better rise than Nifty. Remember, it was under performer too. Well,
but it is expiry day and anything can happen. Technical support is at
22400-22300. Let us see.
