Tuesday, May 29, 2012

Nifty update for 30-May-2012


Nifty futures ended flat after attempting a close above 5000 but the choppiness was evident throughout the trading session. It is expected to take support at lower levels of 4920-30 and head towards 5030-50 levels in the short run. The options table tells us that lot of 5000 call options are getting written at 30-35 band and even if nifty stretches above 5000 zone a break and closing above the band would tell us whether there is some more steam left in the current up move. As said in the previous post 4920-4930 would be crucial as lot of buying has happened at that level and that would be the stop for all the long positions in nifty. Volatility data shows some short build up at higher levels especially in 5000 call. Turnover data still remains poor and it shows lack of demand from the retail investors and good accumulation would be necessary for any further up move. I expect nifty to trade between 4920 – 5030 in tomorrow in the coming sessions.
Among the stocks , Maruti Suzuki is showing some consolidation at lower levels close to 1115 – 1120 and the stock has retraced 61.8% of the previous rally. The current consolidation shows it can give 25-30 points on the upside. We expect nifty to trade between 4920 – 5030 in tomorrow in the coming sessions. 

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