Market trend: Heavy selling in IT shares is taking a toll on the market. Nifty is trading around 25850 with a fall of about 100 points. Infosys, TCS, HCL Tech and Tech Mahindra have put pressure. Bank Nifty is outperforming today with flat trading. Midcap and smallcap are also showing decline. Along with IT, there is pressure in realty, chemical and capital market shares also. All three sector indices have slipped about one percent. Light buying is visible in metal, auto and select NBFCs.
Around 10 am, Sensex was down 319.53 points or 0.38 per cent at 83,914.11 and Nifty was down 92.95 points or 0.36 per cent at 25,860.90. About 1397 shares are trading with gains. 1923 shares are in decline and 162 shares are trading without any change.
strategy on nifty
Talking about what should be the strategy in the market now, CNBC-Awaaz’s Virendra Kumar said that the first registration for Nifty is at 25983-26031 and the big registration is at 26071-26109/26141. For this, the first base is at 25789-25859 and the bigger base is at 25693/25717-25741. Looking at IT, it was said yesterday that crossing 26000 seems difficult. But buy dips towards 25900/867 till Base-1 holds.
FII have again bought in cash. Some buying has also been done on their behalf in the index. Net shorts decreased slightly, but there is not much change. Currently it is at 1.32 lakh. Maximum puts are at 26000/25900, if 25900 is crossed then 25859-789 will also be visible. There are also heavy shorts with 26000/26100/26200 calls. ADRs of Infosys, Wipro have slipped. This means opening weakness and below 200WEMA is possible.
Keep in mind to buy in controlled dips which will happen only above Base-1 (25858/789). Base-1 will be a buying zone in the fall, if broken then Base-2 will test below, trade accordingly. As long as Base-1 remains, buying will be recommended on the downside with a target of 25983/26031.
strategy on bank nifty
Virendra Kumar said that the first registration for Bank Nifty is at 60838-61010 and the biggest registration is at 61195-61349. For this, the first base is at 60145-60353 and the bigger base is at 59849-60021. Yesterday, there was a great buying trade on Base-1 due to slight fall, closed at DAY HIGH. PSU banks again provided support. But support from private banks is still missing. Calls and Puts still have the highest OI at 60000, but there is little action on the upside Puts. But it is true that it is difficult to cross 61000 because private banks are not supporting. Now focus on current trades and check trades at Resistance-1, upside is possible above 61010. It would be more reasonable to chase a fall near Base-1/60500.
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