Yagnesh Patel: July 2014

Thursday, 24 July 2014

Analysis:

After made top in month of May 2014 stock starts correcting and forming a base near 560 levels and consolidating in range from more than 2 months.

Stock has come out of range after big consolidation by breaking previous swing high and given a breakout.

Stock is trading above its 20 days SMA, 50 days EMA & 200 day EMA suggest strong uptrend.

Strategy: Buy Wock Pharma at CMP- 658 and add on dips for possible Target- 750 - 780 with stop below 620 on daily closing basis.

FIIs sold 2168 contracts of Index Future (sold 5578 long contracts and 3410 short contracts were covered) with net OI decreasing by 8988 contracts. FIIs were net seller today.

Nifty made life high and at same time FIIs started both selling long & covering short contracts. In this rally mid cap & small cap stocks are not participating & also advance-decline ration not favorable. It’s advisable to traders that follow strict stop loss. Other side the volume is not supporting this rally. There will be a big explosive move expected tomorrow.

Nifty may test 7845 – 7895 & support levels comes at 7805 – 7770 – 7730. Tomorrow is a weekly closing and bulls will try to close above 7850 & bears will try to close below 7730.

FIIs bought 1330 contracts of Index Future (bought 11407 long contracts and 10077 short contracts were added) with net OI increasing by 21484 contracts. FIIs were net buyers today.

Nifty made life high and at same time FIIs started adding short contracts on high. Nifty trading near strong resistance 7800 so all long trade need a strict stop losses. There will be a big explosive move expected in 1-2 days.

FIIs bought 31056 contracts of Index Future (bought 29496 long contracts and 1560 short contracts were squared off) with net OI increasing by 27936 contracts. FIIs were net buyers today.

Nifty heading towards life time high and FIIs covering short contracts and adding longs is a very positive signal. There will be a big explosive move expected in 1-2 days.

FIIs bought 13636 contracts of Index Future (bought 6553 long contracts and 7083 short contracts were squared off) with net OI decreasing by 530 contracts. FIIs were net buyers today.
Slowly FII started buying and also covered some short contracts which are a good positive sign. Nifty unable to cross resistance of 7660 as suggested in last write up and made high of 7655.65 If once nifty cross this level then upside 7700 – 7740 levels are on cards.
Nifty has able to close and sustain above 7585 resistance level which will act as a strong support in nifty now. There will be a big move expected in coming days.
Tomorrow is a weekly closing and bulls are trying to close above 7700 and bears will try to close below 7590.

FIIs sold 630 contracts of Index Future (bought 18754 long contracts and 19384 short contracts were added) with net OI increasing by 38138 contracts. FIIs added both long and short contracts today.
As discussed in last report nifty exactly bounced as suggested and rallied today. Nifty broke three days range on upside which may bring upward momentum. Again FII started adding short contracts when market just began to rise which gives weak sign in the market.
Nifty has support at 7595 – 7560 & resistance at 7660 – 7700 (spot).

FIIs bought 1794 contracts of Index Future (bought 8503 long contracts and 6709 short contracts were added) with net OI increasing by 15212 contracts. FIIs were net buyers today.
FII added some short contracts and also bought some long contracts. As discussed in last report nifty bounced from swing low. This momentum will continue in coming days.
Nifty has support at 7505 – 7460 & resistance at 7570 – 7600 (spot).