Nifty Update for 16-02-2010

Market Scenario is not much encouraging. There is increase in open interest with decrease in the cost of carry, indicating short position building up at higher levels. Implied volatility has increased by around 200-250 basis points, indicating bearish sentiment of the traders. Call writers are taking new position but put writers not covered their existing positions. Change in Indian VIX has increased at 3.02%. Tomorrow may a uncertain and volatile day. Last half an hours trading indicates that Traders are not sure above the movement of the tomorrow’s market. Traders are requested to keep patients and be cautious during trading.

Nifty closes below its pivot point 4809 and broken its 13 DMA (4821). Only hope is that Nifty closes above 4800 and Trin indicator is below of 1.

Tomorrow, if Nifty stay below 4796 then first target is 4772 and second target 4747. After fall if Nifty stay above 4772 then long position can be taken at 4775 level with stop loss 4769. Selling pressure can be witness below 4759.

At the upper side, If Nifty stays above 4808 then first target is 4835 and second target is 4871. After rise if Nifty unable to hold itself above 4835 then short position can be taken at 4829 with stop loss 4835. Buying pressure can be witness above 4845.

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