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Thursday, 8 May 2014

Nifty analysis forecast for 9 May 2014 - 8 May 2014

Nifty analysis for 8  MAY 2014

Nifty after showing full enthusiasm in first session ended flat near its series support of 6650. Yesterday we mentioned that Nifty is highly oversold with respect to derivative data. In our forecast and advice for traders section we mentioned about selling it near 6700 - 6720, but it remained below 6700.

Today it tried making ground for its sharp up-move towards 6800+ . Stocks remained strong enough to keep banknifty floating entire day. BankNifty ended the day with 99 points gain.

Stocks like SBIN, ICICIBANK, BHEL, HINDALCO, LT showed strength entire day. Pressure came from realty and fmcg sectors.

FII after many days emerge as buyers against negligible DII selling. Nifty hasn't gone anywhere in last 5 days and DII selling has sub-dued now considerably. This combined with oversold derivative front is pointing towards sharp rally.

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 8-May-2014 3546.433183.19363.24
DII 8-May-2014 1371.271491.17-119.9

In derivative segment FII continued their selling and this selling now increased in index options too, which after yesterday's leveling out increased their sell figure to -747.43 Cr. We are not even near the middle of the series and the sell figures in index figures and stock figures is staggering and should now show some pause here. This pressure should get released in the form of a sharp rally.



Nifty future premium remained stagnant at 31 points, and OI decreased to 13634950. Nifty traders decided to further cut off their positions. Downfall now looks taking a pause here.
MAY 2014 SERIES TURNOVER ( Cr )
INDEX FUTURES -3278.54
INDEX OPTIONS -747.43
STOCK FUTURES -2096.96
STOCK OPTIONS 123.68

FII DERIVATIVES STATISTICS FOR 8-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
29475
980.69
38462
1280.87
266274
8868.55
INDEX OPTIONS
148313
4998.90
165629
5721.19
1664874
55388.26
STOCK FUTURES
61850
1894.06
72480
2213.11
1256749
38193.92
STOCK OPTIONS
23246
731.10
24735
779.46
60147
1814.53

Stock ideas update

ICICIBANK today inched towards its projected target of 1320 and closed with gain of 1.4%.

Trade update

Today after seeing BANKNIFTY shining brightly and Nifty holding its series support of 6656, we decided to go long. 
http://nifty-trade.tracknifty.com/2014/05/nse-nifty-may-2014-series-trade-3-8-may.html

And also we entered RELIANCE 1000 CE May 2014 series.
http://nifty-trade.tracknifty.com/2014/05/nse-nifty-may-2014-series-trade-4-8-may.html

Nifty forecast for 9 MAY 2014

Nifty should trade with clear bullish bias entire day.

Advice for traders

Buy at opening bell with stop loss of 6640 for target of 6700 - 6720 - 6740.

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