Markets Weekly From 20/07/2009 To 26/07/2009

NIFTY (4374.95)

Resistance : 4460-80 / 4535 / 4630-40 / 4700

Support : 4330-20 / 4275-60 / 4225 / 4065 / 3755

SENSEX (14744.92)

Resistance : 14915 / 15020 / 15230 / 15350 / 15460 / 15770 / 15835

Support : 14630 / 14410 / 14255 / 14160 / 14035 / 13820 / 12675

NIFTY FUT (4381.5) : Nifty Has Strong Resistance Near 4460-80 & Supports Around 4275-60 & 4225 Zone

Resistance : 4495 / 4555 / 4725

Support : 4325 / 4225 / 4055 / 3735

BANK NIFTY (7233.8)

Resistance : 7540 / 7845

Support : 6950 / 6645 / 6060

WEEKLY MARKET OUTLOOK

SECTOR WATCH : POWER (BULLISH)
Last week trade showing long positions build up in power sector related stock futs.
Total OI of PFC FUT up 100.89% prices up 12.23%, PTC FUT up 174.11% prices up 3.96% and RECLTD FUT up 52.74% prices up 16.41% last week.

We expect positive move in coming week.

STOCK FUT TO WATCH NEXT WEEK
PATNI FUT (BULLISH)
Total OI of PATNI FUT up 202.53% prices up 15.21% last week. PATNI JULY FUT.Intraday high 291.50, Intraday low 249.00 last week.

We expect positive move in coming week.

WEEKLY NIFTY FUTURE OBSERVATION

Observation:-

1)Total OI of NIFTY FUT up 1.12%, NIFTY FUT closed up 9.71% last week.

2)Out of NIFTY 50 Stock FUTS, 49 Stock FUTS closed positive and 1 Stock FUTs close flat last week.

3)OI of current series NIFTY 4100 CE is down 43.50% prices up 293.23% showing short covering. OI of NIFTY 4200 CE is down 5.30% prices up 359.98%, NIFTY 4300 CE is down 5.33% prices up 457.27% showing aggressive short covering plus buying. OI of NIFTY 4400 CE is up 10.86% prices up 511.18%, NIFTY 4500 CE is down 9.56% prices up 550.29%, NIFTY 4600 CE is down 9.78% prices up 559.41% showing short covering plus buying. OI of NIFTY 4700 CE is 36.97 LK highest OI in CALLS.

4)OI of current series NIFTY 4000 PE is up 61.55% prices down 88.28%, NIFTY 4100 PE is up 57.13% prices down 86.45%, NIFTY 4200 PE is up 67.97% prices down 82.83% and NIFTY 4300 PE is up 62.10% prices down 78.72% showing aggressive put writing last week. OI of NIFTY 4000 PE is 71.14 LK highest OI in PUTs.

5)Total OI of JULY series CALLs is down by 30.12 LK to 2.96 CR, JULY series PUTs is up by 1.30 CR to 4.05 CR. OI of JULY series (single series) PUTs at 4.05 CR is higher than total OI of NIFTY FUT (all series) at 2.39 CR. NIFTY JULY series PCR (OI) at 1.37.

Conclusion :-

VIOLENT TREND REVERSAL last week. Trapping short sellers. I expect up move to continue for 2-3 sessions. NIFTY SPOT Resistance@ 4480-4495, 4535 levels.

Above 4555 levels, Next TGT will be 4630-40 levels.

I expect profit booking between 4570-4630 levels. On down side, NIFTY SPOT Support@ 4320-30, 4280-90 levels. MIDCAPs to outperform next week.