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Wednesday, 7 May 2014

Nifty analysis forecast for 8 May 2014 - 7 May 2014

Nifty analysis for 7 MAY 2014

Nifty closed -62.75 points finally a midst strong pressure coming from IT sector and bad asian cues. NIKKEI opened more than 2% down and rest of asia followed. We were of the view that Nifty should move higher from here towards 6800, and this was reflected in LT, SBIN, ICICIBANK, ITC etc. Entire pressure came from IT , METALs and Realty sector. Hindalco lost 2.5% and more weakness to follow soon.

All sectoral indices closed in red, some more, some less. BankNifty closed only 27 points down. IT closed the most, down by 2.54%. Momentum is increasing on the down side slowly a midst some confusion which is reflected in stocks like LT, SBIN. 

Market is oversold historically by derivatives point of view, something which hasn't happened for last many years, based on which a bounce was expected today which didn't come. Tomorrow a bounce should come surely. Our long position was stopped out at 6695.

Highlight of the day was BankNifty which remained negative until 10:00am and then moved into plus and remained plus for most of the time and then closed marginally red.

Selling volume was low too both by DII and FII. Low selling volume is meaningless too.

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 7-May-2014 4257.464138.35119.11
DII 7-May-2014 1250.191509.07-258.88

And in derivative segment FII keep selling stock and index futures. Today Index Options figure has hit the lowest value seen after a very long time. Today it got reduced to mere -25Cr.


MAY 2014 SERIES TURNOVER ( Cr )
INDEX FUTURES -2978.36
INDEX OPTIONS -25.14
STOCK FUTURES -1777.91
STOCK OPTIONS 172.04


FII DERIVATIVES STATISTICS FOR -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
39351
1313.96
54590
1825.92
279709
9307.07
INDEX OPTIONS
186600
6489.34
216077
7351.93
1586208
52700.92
STOCK FUTURES
72874
2242.86
84844
2582.04
1250031
37958.68
STOCK OPTIONS
25433
807.12
26460
838.27
55662
1690.83

Stock ideas update

Yesterday we posted 2 stock ideas viz; BOMDYEING and ICICIBANK.

Out of which BOMDYEING hit stop loss and ICICIBANK just escaped. Tomorrow a bounce is expected in markets, so ICICIBANK can hit the target.

Trade update

Our long trade stopped out with loss of 35 points.
Our total tally for this month now stands at -49 Nifty points.

Nifty forecast for 8 MAY 2014

A bounce towards 6700/6720 looks unavoidable seeing the market's oversold nature.

Advice for traders

Avoid buying, instead sell near 6700 - 6720 with appropriate stop loss.

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