· Limited downward basis with upside momentum continuing till 5,460. If the market close above 5,400 with volume, it may reach to 5,460. Conservative traders looking for return on investment of 3% could go for Selling 5,100 PE with Gross investment of Rs 25,000 and ROI of ~3%.
Option Analysis
· Call Writing: Addition of 6.63 and 4.51 lacs shares at 5,300 and 5,400 respectively. Concentration and PCR less than 0.5 at 5,400 strike price indicates upside momentum may continue for another 100 points to 5,460.
· Put Writing: Fresh writing across strike prices with majority at 5,300 of 9.9 lacs shares and 5,400 6.7 lacs shares So, we expect markets to bottom at 5,300 for intermediate time span and 5,200 for April series
Implications: Current trend of upside momentum may continue till 5,460 with first intermediate resistance at 5,400. However, downside capped at 5,300 for intermediate time and 5,200 for April series. The range for the April Series to settled between 5,200 and 5,400.
FIIs and DIIs activity in capital market segment
· FIIs were net buyers of Rs 766 crore with Gross buyers of Rs 2,374.5 crore and Gross Sellers of Rs 1608 crore.
· DIIs were net buyers of Rs 403 crore with Gross buyers of Rs 1,392.5 crore and Gross sellers of Rs 989.1 crore.
India VIX
· Volatility for 6TH April, 2010 close at 17.2 which is 0.15% Marginal Increase than previous close, after touching an intraday high of 17.57 and low of 17.03.
Implications:
Volatility has an inverse relationship with markets and trading below its undesirable level. So we expect volatility in near term to bounce back till 30 levels.
Following are the trading ideas for tomorrow i.e. the 7th of April 2010
· Nifty – High Risk trade
o Short at 5366 with a target of 5330 and a stop loss of 5375
· DLF - Accumulate between 327 & 318 for a target of 340
o Stop loss at 315; time frame 3 days
· Indiabulls
o Long at 115 for a target of 117; stop loss at 113
· Kotak Mahindra bank
o Long at 781 for a target of 792; stop loss at 775
All these are high risk trades so if you are a safe trader avoid tomorrow and wait for some sort of direction in the market.
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