Yesterday Nifty Future made a low of 4053 and went up, with major support coming from Reliance, but could not cross the level of 4122 (previous bottom) decisively. However, in the later part of the day major gains were wiped out and Nifty Future closed near the lower end of the day at 4067.
Considering the weak close, the market may open weak and go upto 4000 (+ or - 25 points). As mentioned for past 2 days i expect that the market can take support at this level and hence it is advisable to buy Nifty Future or 4100 Call depending on the traders risk profile, with stop loss of 3975. On upside. 4122, 4155 and 4220 will act as Reistance levels.
RELIANCE FUTURE: As expected, Reliance took support at 1797 and made smart recovery upto 1897 but ended the day lower at 1836. I continue to maintain a buy on Reliance near 1800 levels with stop loss of 1775. On upside 1910 and 1950 can at as resistance levels.
I would like to add here that, if the market opens very weak (looks unlikely) and Reliance breaks 1790, it can find next support near 1750, which being mid-point of a major swing will act as a good buying level. Those taking delivery may not have much to worry, but those buying future should on the safe side buy a put of 1700, if the situation so demands.
INFOSYS FUTURE: Yesterday it took support at the trend line. It can be bought with yesterday's low of 1690 as stop loss. On upside, above 1735, it can go upto 1750 and 1800. With quartely results to be declared on 10.7.2009, i would not advise short position at this levels.
With Best Wishes,
Ketan Asher.
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