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Thursday, 5 June 2014

Nifty analysis forecast for 6 June 2014 - 5 June 2014

Nifty analysis for 5 JUNE 2014



This was the tweet yesterday during market hours. Market fell but didn't quite upto our expectations. But money saved is money made. Nifty rose sharply after the pressure was released and big buying came at dip. Midcaps and Metals took the index higher with the support of IT. IT was supporting so BankNifty wasn't needed, and BankNifty closed flat after once making a low of more than 100 points.

SSLT zoomed 6.65% to close at 314, and same was the case with HINDALCO and TATASTEEL.

FII returned to big buying after yesterday's lacklustre session, and won the buying race zooming past DII selling.

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 05-June-2014 7408.086039.111368.97
DII 05-June-2014 1807.482233.27-425.79

At the derivative front FII continued their big stock future buying which they were missing for the last 2 months after March 2014 series. What is interesting is they are selling index futures continuously, so the base of this series is still not yet formed and we are of the view that base should form higher up at some unseen levels from current levels.


Nifty and BankNifty future saw OI reduction yet again. Nifty future OI is merely 14040100 and BankNifty future OI is 2402625, both are below normal. Nifty future premium is now stable at 12 points. We are of the view premium will slowly rise to 30 points.

JUNE 2014 SERIES TURNOVER ( Cr )
INDEX FUTURES -1137.97
INDEX OPTIONS 2691.49
STOCK FUTURES 1381.59
STOCK OPTIONS -25.24


FII DERIVATIVES STATISTICS FOR 5-JUNE-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
34239
1281.26
58095
2171.02
258395
9711.45
INDEX OPTIONS
277912
10310.06
262308
9686.41
1383167
51736.10
STOCK FUTURES
115680
4374.50
93571
3509.24
1501297
55318.33
STOCK OPTIONS
56813
2187.28
57140
2199.97
74168
2783.14

Stock ideas update

Our latest recommendation HINDALCO has hit target giving gain of 10% in just 2 days.
http://nifty-trade.tracknifty.com/2014/06/nifty-stk-june-series-trade-5-3-june.html

And our multibagger recommendation RENUKA going well.
http://nifty-multibagger-stocks.tracknifty.com/2014/01/multibagger-call-buy-renuka-19-january.html

Trade update

We exited our yesterday's shorts and took longs again. We hoped for much bigger gains in today's fall but anyway we exited with minor loss.
http://nifty-trade.tracknifty.com/2014/06/nifty-fut-june-2014-series-trade-6-5.html

Nifty forecast for 6 JUNE 2014

Nifty likely to continue its northward journey but sharp dips are likely tomorrow of 30-40 points.

Advice for traders

Wait for a dip from highs of 30-40 points to take long position and exit near day's high. Basically you have to look for sharp pullback which are almost certain to come.
Levels : 7539 - 7455 - 7435.

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