Daily Market Strategy -- IIFL IJK Soft Start; Focus On Your Goals The otherwise lackluster indices got a puff of energy from the likes of ITC after reports that the government has deferred its earlier proposal to ban sale of loose cigarettes. Stocks of heavy electrical equipments too mostly powered ahead. Investors will be cautious at these levels and perhaps re‐look at their portfolio to ensure the risk‐reward ratios are in place. Many small and mid‐cap counters have run ahead and it’s time to lighten on some of those counters. The outlook is a soft start even as the Nifty will attempt to cross the 8600 mark. Global cues are muted. US indices closed flat. ECB President Mario Draghi said the central bank was prepared to implement more easing next year if necessary. This did not go well with global markets. In US economic news, weekly jobless claims fell to 297,000 as expected. Monthly jobs report later in the day is awaited in US. Asian indices are mostly higher. Japans Nikkei is up and so is Hong Kongs Hang Seng. Chinas Shanghai index has gained around 0.83%. Nifty index hovering in the range of 8500-8600 for the week, with actions seen in Mid Caps and Small Caps. However, looking at the market breadth the index seems to be little tired. Likely possibility of the index to break the range and test 8420 in coming days. Portfolio shuffling will be the ideal choice at the moment. Nifty Support : 8464 Nifty Resistance : 8619 Early morning jump in Nifty provide to be unsustainable as traders used the opportunity to unwind their long holding in individual stock as well as indices dragged the market down. FII’s long/short in index future stood at 8.0x as against 9.3x day before yesterday and 14.5x at start of the expiry. The data was mixed as FIIs cut -24k contracts in long index position and fresh addition of 8K contract in short position, cumulatively long/short for last two days stood at -65k/15k contracts. However, FIIs continues to remain buyer in cash segment. On option front, aggressive OI build-up on option was visible at 8400, 8500 and 8600 Put. OI increase in Put front led to PCR jump to 0.91x The maximum OI concentration is at 8500 strike. Suggesting, the broader market may remain in range of 200 point movement in near term. Stocks in Ban period : NIL
Posted on: Fri, 05 Dec 2014 03:44:54 +0000
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