Global markets are tepid today. Japan’s Nikkei is 1/2% up, Hang Seng is down 1%, Shanghai Composite and Straits Times are also showing minor losses. US also ended mixed with weakness in Euro, So overall global mood is quite dismal.
Indian Market will also trade inline with global factors, Nifty will open near the supply zone of 5130-5150. It will face stiff resistance at these level, Right now it is at 5180, above that market trend remains upward , so positional trading direction should be upward only after we close above 5180 for at least two trading session.
Lets take a quick check on F&O data-
Nifty PCR at 1.13 versus 1.16
Nifty 4800 Put Adds 3.5 lakh shares in Open Interest.
Nifty 5100 Call Adds 3.9 lakh shares in Open Interest.
Nifty 5200 Call Adds 4.9 lakh shares in Open Interest.
F&O data suggest that market will trade in tight range, FII’s selling may push it downward in next few days.
Trading Strategy- It is advisable to open positional Short positions in the market at higher levels, Short Nifty Futures at 5180 and buy same quantity of 5300 Call for hedging, targets for short position will be 5040 and 4960.