- Created: Monday, 10 November 2014 10:38
Nifty Future begun the week with the gap up opening above its previous life time high of 8200 level as bulls had complete control over the bears and continued its rally upward throughout the week making all time high, getting help from factors like FIIs continuous buying, Brent crude declined to its lowest in four years. Some profit booking was seen in the market at higher levels.
In overseas markets, Asian stocks rose after a drop in American jobless claims bolstered optimism in the world's largest economy before a US government report on employment. S&P 500 and Dow Jones Industrial Average climbing to record levels after European Central Bank president Mario Draghi hinted at monetary stimulus of as much as euro 1 trillion for eurozone economy.
Nifty November Future gave all time high closing at 8381.65 with the marginal weekly gain of 28.95 points.
Open Interest Analysis:
Highest open interest was seen in 8500 November call option followed by 8400 call option while 8200 November witnessed highest open interest addition followed 8100 put option. This clearly indicates 8500 and 8400 can act as important resistance mark of Nifty Future while 8200 and 8100 will be crucial support level. Nifty November Future is likely to trade in range of 8500 and 8100.
Technically Nifty Future is still looking bullish on charts and if it sustains above the level of 8200 then it can make new highs in coming trading sessions.
· The government will unveil industrial production data for September 2014 on Wednesday, 12 November 2014. Growth of industrial output remained subdued at 0.4% in August 2014.
· CPI based inflation for the October 2014 will be released on 12th November 2014. CPI eased to 6.46% in September 2014, from 7.783% in August 2014.
· Government will unveil WPI (Wholesale price index) inflation for October 2014 on Friday, 14 November 2014. WPI eased to 2.38% in September 2014, from 3.74% in August 2014.
· The Reserve Bank of India (RBI) is scheduled to undertake its fifth bi-monthly monetary policy review on 2 December 2014. Investors are expecting a rate cut as inflation is set to ease further on recent sharp cut in fuel prices.
· Winter session of parliament will start on 24th November 2014. Decision on pending bills and further policy announcement may affect the movement of market.
· Second quarter GDP numbers is scheduled on 28th November.
SL 129 TGT 145-150
The stock is bullish on charts and is trading below the resistance mark of 137 with the positive bias from the last few trading session and is sustaining with the RSI of 54. It is trading above its 50 and 200 DMA. Traders can initiate the long position in the stock above the resistance level of 137 for the targets of 145 and 150. Stop loss should be placed at 129.
SL 399 TGT 425-435
The stock is trading sideways in long term, Presently it is sustaining above its major support level and given breakout of its immediate resistance mark on last day of weekly trading session. It is likely to experience fresh buying with the crossing of its next resistance level of 412. One can expect the target of 425-435 in near future, with the strict stop loss of 399.
JP ASSOCIATE BUY
SL 32 TGT 35.10-37
Over all trend of the stock is weak. Recently its has started showing recovery after giving breakout of its major resistance. It may continue its recovery rally if crosses its resistance mark of 33.60 in upcoming sessions. Traders can expect targets of 35.10 and 37 in near term. Technical stop loss for the stock is at 32.