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Tuesday, 20 May 2014

Nifty analysis forecast for 21 May 2014 - 20 May 2014

Nifty analysis for 20  MAY 2014

Nifty opened around 60 points higher and then traded sideways entire day making lower high and high low narrowing down the range. Range is getting narrowed since last 2 days after 16th May 2014 sharp move. VIX is now below 20 which is a good sign for the markets. Risk should be under control for bullishness.

Midcaps and Smallcaps continued their ruthless vertical up-move. Realty, Media indices closed 4% higher. UNITECH rose another 14.6% to make a high of 27.15. LITL, GUJNRECOKE, MRPL, GITANJALI rose 10-20%. 

BankNifty closed -110 points down and smart recovery was seen in IT index which closed more than 200 points higher.

SSLT gained 4.9% to finish at 245 and taking its total gain of more than 50% in just 5 days.
BHEL continued its northward journey with gain of 4% to close at 277.8.

Biggies which were shining took a pause today like LT, YESBANK, RELIANCE, SBIN. Reliance unexpectedly lost 3% and gave its last day's gains.

DII jumped on the chance to offload their holdings by 656Cr as FIIs decided to stand aside today.

FII trading activity on NSE,BSE and MCX-SX in Capital Market Segment(In Rs. Crores)
Category Date Buy Value Sell Value Net Value
FII 20-May-2014 7008.217112.74-104.53
DII 20-May-2014 1560.272217.1-656.83

In derivative segment FIIs added longs to index future increasing OI to 471905. 

Stock futures saw another 1013Cr of sell positions to get added taking OI to 1369890.
Index options saw short covering by 1168 Cr bring the total towards positive territory. There is a considerable reduction of sell positions in Nifty future in the last 8 days bringing down the turnover from -3278 to -926 Cr with more than 60% rise in OI.

Nifty future closed with premium of 25 points but with unexpected OI reduction of 1.30%.
MAY 2014 SERIES TURNOVER ( Cr )
INDEX FUTURES -926.55
INDEX OPTIONS -6343.64
STOCK FUTURES -9861.17
STOCK OPTIONS -239.58

FII DERIVATIVES STATISTICS FOR 20-MAY-2014
BUY SELL OPEN INTEREST AT THE END OF THE DAY
No. of contracts Amt in Crores No. of contracts Amt in Crores No. of contracts Amt in Crores
INDEX FUTURES
81451
3002.39
63982
2350.11
471905
17326.09
INDEX OPTIONS
424641
15541.92
393708
14373.90
2442681
89037.59
STOCK FUTURES
152345
5542.12
181573
6555.63
1369890
48034.82
STOCK OPTIONS
61359
2278.99
64874
2367.14
111698
4067.04

Stock ideas update

No ideas to track.
We gave a multibagger recommendation in the form of RENUKA in this post : 
http://nifty-multibagger-stocks.tracknifty.com/2014/01/multibagger-call-buy-renuka-19-january.html

Today RENUKA makes fresh high for this year at 23.8, and closed 4.5% higher. Now this should be a breakout towards 48 - 100 in this year.

Trade update

Our paid idea for UNITECH today has crossed 300% profit : 
http://blog.tracknifty.com/2014/05/UNITECH-trading-idea-makes-stunning-profit-20-May-2014.html

Our intraday profit in our paid idea for Nifty future fetched us 40 Nifty points.
We bought Nifty @7281 with Stop loss of 7250, and target of 7320 at 20 may 2014, 9:28am.

Nifty forecast for 21 MAY 2014

Nifty is likely to narrow down its range further and is likely to trade in range of 50-60 points.
Likely range : 7310 - 7260.

Advice for traders

Trade with range bound bias ie; selling the top and buying the bottom.

Note: Wonderful trading opportunities up to 9th June 2014, hurry up and get terrific timely trading ideas.

Anjum S Khan
admin@tracknifty.com
Admin/Analyst
TrackNifty.com