Nifty Support & Resistance and target for tomorrow 31st Jan 2018:
Nifty will be facing resistance near 11,090 and 11,150 whereas supports are placed at 11,000 and 10,950 levels. Tomorrow’s upside target for nifty can be 11,090 levels and on the downside 11,000 levels are possible.
How was the nifty’s intraday movement today Jan 30th 2018?
Index opened the day 10 points in the negative. After the opening nifty started to drift lower and lower by clocking the intraday low of 11,033 by losing 80 points from the highs of the day 12.30 PM.
After hitting the lows nifty recovered 16 points to end the day at 11,049.65 by losing 16 points.
Only 12 of 50 nifty stocks closed in the green. HPCL is the top gainer by gaining 4.76 % and Eicher Motors is the top dragger by losing 2.78%.
Opening: 11,120.85; High: 11,121.10; Low: 11,033.90 Closing Price: 11,049.65(-80.75)
Nifty 22 Feb 2018 Expiry Futures closed at 11,072.10 (-65.55)
Nifty Forecast/Outlook for 31st Jan 2018:
Index forms bearish belt hold pattern in the technical charts which means the opening is more or less equal to the high point of the day and closing is near the lows of the day suggesting sellers are trying to control the market this can be confirmed if there is follow through selling on 31st Jan 2018.
Notable action of the day, Nifty after losing 100 points from yesterday closing found support near the 5-Day EMA and closed just above the level.
This is the penultimate day before the budget so there will volatility in the market. In the derivatives segment FII’s sold 1440 crores in the index futures and Put options premium IV’s are more than Call options IV’s suggesting long positions in the call options are getting squared more than put options.
Most of the technical indicators are showing over bought zone, as nifty is in long term positive term any dips can be used to enter into long positions, but it’s better to wait till the event is over.
What are the indicators which are positives and negatives for nifty?
Positives: Nifty trading above the key moving averages 5-Day, 13-Day, 20-Day EMA and 50-Day EMA
Negative: Over bought zone and reversal pattern in the charts.
Nifty Feb 2018 Expiry trading range: Nifty expected to trade between 11,500 -10,500 levels.
Positional Nifty Call for 22 Feb 2018 Expiry Strategies:
- Position Recommended for 27-Jan-2018: Buy Nifty 22 Feb 2018 11,000 PUT and sell two lots of 10,800 Put and buy one lot of 10,600 on Monday and hold the position for target of 10,000 as the current premium outflow is just 22 points.
Past performance on Nifty positional trades.
- Position Recommended on 25-OCT-2017: Initiate a pair trade by selling Nifty 30 Nov 2017 Futures around 10,325-10,350 and also buy Bank nifty Nov futures around 25,150 -25,200 levels. Hold the position for target of RS.20, 000 with stop around Rs. 10,000.Target achieved in 20 Days with a profit of Rs. 20,000.
- Position Recommended on 13-Dec-2017: Initiate a pair trade by Buying Nifty 28 Dec 2017 Futures and also Sell Bank nifty Dec futures by 9.20 AM on 13-Dec-2017,On 13 Dec 2017 Nifty was bought at 10,250 and bank nifty was sold at 25,160 levels. Hold the position for target of RS.15, 000 with stop around Rs.10, 000.Holding period 10-15 Days.Target Achieved on 18-Dec-17 in 6 days Rs. 15,000 profit.
- Position Recommended for 19-Dec-2017: Sell Nifty 25 Jan 2018 Futures 10,500 for a target of 10,300 with a stop around 10,620.Hold for 10-15 Days. Stop loss Triggered, Loss of 120 points.(i.e 9,000).
- Position Recommended on 28-Dec-2017: Initiate a pair trade by Buying Nifty 25 Jan 2018 Futures and also Sell Bank nifty Jan futures by 9.20 AM on 28-Dec-2017 and Hold the position for target of RS.15, 000 with stop around Rs.10,000. Nifty buying price @10,542 and bank nifty selling price @ 25,560. Booked Profit Rs.4500. as bank nifty is showing sign of strength.
Visit our website on 31-Jan-2018 9.30 PM to get the nifty view for 1-Feb-2018.
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