Markets Weekly For 02-03-2009 To 06-03-2009

WEEKLY NIFTY FUTURE OBSERVATION

Observation:-

1) Total OI of NIFTY FUT down 13.45%, NIFTY FUT closed flat last week OI down due to expiry.

2) Out of NIFTY 50 Stock FUTS, 23 Stock FUTS closed negative, 18 Stock FUTs closed positive and 9 Stock FUTS closed flat last week.

3) OI of NIFTY 2700 CE is up 154.92% prices down 4.23% and NIFTY 2800 CE is up 73.09% prices down 7.60% and NIFTY 2900 CE is up 65.20% prices down 14.43% last week showing call buying. OI of NIFTY 2800 CE is 39.22 LK, highest OI in CALLs.

4) OI of NIFTY 2500 PE is up 67.28% prices down 33.97%, NIFTY 2600 PE is up 200.33% prices down 30.40% and NIFTY 2700 PE is up 91.43% prices down 25.06% last week showing aggressive put writing. OI of NIFTY 2700 PE is 67.07 LK, highest OI in PUTs.

5) Total OI of MAR series CALLs is up by 63 LK to 1.79 CR. MAR series PUTs is up by 1.22 CR to 3.00 CR last week. MAR series NIFTY PCR (OI) at 1.67.

Conclusion :-

I expect NIFTY SPOT to trade very volatile. Possibility of wild swings. Any bounce will be short lived. NIFTY SPOT will face resistance at 2800-2810, 2830-40 levels. Strong selling will emerge above 2850 levels. Fresh short will be initiated here. Fail to sustain above 2850 levels, NIFTY SPOT will show sudden down move. On down side, NIFTY SPOT support at 2660-2695-2700 levels. Strong support at 2660-2610 levels.

NIFTY (2763.65)

Resistance : 2815 / 2840 / 2870

Support : 2745 / 2695 / 2660 / 2610 / 2510

SENSEX (8891.61)

Resistance : 9055 / 9215

Support : 8835 / 8675 / 8455

NIFTY FUT (2735.5)

Resistance : 2790 / 2850

Support : 2730 / 2675 / 2610

BANK NIFTY (2875.05) : BANK NIFTY READY FOR EXPLOSIVE MOVE

Resistance : 4000 / 4115

Support : 3860 / 3740 / 3610

On Monday,Opening is Flat to Up,

Stay Long Above 2760,Sl Below 2745,Tgt 2780-2800-2835,

Sustain Below 2740,Sell with Sl Above 2755,Tgt 2725-2705-2675.