Nifty Forecast/Outlook for 6th Mar 2018:
Index forms bearish belt hold pattern on 5th march means opening price is the high point of the day and nifty moved lower and lower to reach lows and closed near the lows of the day.
Important to note is nifty closed below 100-Day EMA. Usually nifty will bounce back from the 100-Day EMA in the Bull Run. We are expecting nifty to bounce back to 10,600 levels in the days to come which can be used to initiate shorts in the nifty, as bank nifty is forming Doji pattern and will lend hand in supporting the bounce back.
Still nifty is trading in a narrow range of 10600- 10300 levels. Risk reward is not in favor of going short. So one can buy nifty around 10,300 and sell nifty near 10,600 till nifty closes above or below this range.
In the derivatives segment, nifty futures is trading only with 7 points in the premium and FII’s have sold 1487 crores in the index futures and bought 1373 crores in the index options. Today we can see a lot of buying in the 10,400 call for tune of 2,017,575 and PCR is near 0.86 so we can expect nifty is move towards 10,600 .
Nifty target for tomorrow 6th Mar 2018:
Nifty upside target will be 10,430 and on the downside 10,270 levels can’t be ruled out. Nifty supports are placed at 10,300 and 10270 whereas resistance are at 10,420 and 10450.
Nifty contributors and intraday movement of 5-Mar-2018.
Only 8 of 50 nifty stocks closed in the green. Tech Mahindra is the top gainer by 3.10% and Tata Motors is the top losesr by losing 5.04 %.
Opening: 10,428.20; High: 10428.70; Low: 10,323.90 Closing Price: 10,358.85(-99.50)
Nifty 22 Feb 2018 Expiry Futures closed at 10,365.60 (-89.95)
Nifty Mar 2018 Expiry trading range: Nifty expected to trade between 10,300 -10,600 levels.
Positional Nifty Call for 28 MAR 2018 Expiry Strategies:
New Positional Calls for Nifty:
- Position recommended for 06-Mar-2018: Buy nifty futures near 10,300 for a target 10,450 with stop around 10,240. As nifty is having a swing support near 10,270 and 100-Day EMA will be supporting the market.