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.

After yesterdays collapse markets across the world are bleeding with deep cuts, Recent development in Europe are shattering the world markets, the headwind coming from this region has hammered  US markets  and European Indicis were butchered on the fears of debt worries of European countries like Greece, Portugal & Spain.

Market across the world fear that even with a bailout for Greece, Europe’s debt crisis could spread to other weak euro zone countries. that caused US markets to end its worst session in the last three months.

Asia is down, Nikkei is in the red with cut of 2.5%, Hang Seng and Shanghai Composite is also down 2~3%.
Indian indices  will open in the red at  5050 levels and support for the day coming in at 4990, Till that level holds we may see a bounce of 50 to 80 points in next couple of days.

F&O Snapshot-

Market Strategy : Our Short position has rewarded us with handsome gains and I’ll advice to book profits at 5050 today.

After Friday’s up-move, Today’s Nifty opening came at 5230 level. Asia is mixed bag today Nikkei 225 and Hang Seng is down 1.5%, Shanghai composite is also trading flat to negative and it has recovered from its days low.

Nifty will face good resistance at 5280 and 5330 only major support area is at 5120 (100EMA) in between minor support area’s are there like 5230 and 5180, but they don’t require much effort to break below if markets gain momentum on the downside.

Indian Markets are expected to trade in a dull trading session today, volume are expected to remain lackluster and volatility is expected to decrease, So a range-bound trading session is ahead of us and expected range could be 5220 to 5250.

Lets take a quick look at F&O data-

Nifty Open Interest PCR is at 1.15 unchanged

Nifty 5200 Put added 8 lakh shares in Open Interest

Nifty 5300 Call added 9 lakh shares in Open Interest

The overall mood is  bearish.

Market Strategy: Technical bearishness is creeping in and a sudden break-down from these can not be ruled out. we have rolled-over  our Apr Nifty Short position into May.

for performance calculation we will assume Apr Nifty expiry as square off position for existing Shorts and point where fresh Short were initiated for may.

Global mood is quite jittery today, S&P has downgraded credit rating of Greece and Portugal that sparked fears about euro-zone economic stability.

Another twist in the arm came as Goldman Sachs case on Capitol Hill heightened the possibility of financial reform in US as Senators hammered Goldman Sachs Group Inc. executives for taking advantage of the housing bubble and making billions off that market’s collapse.

In the global seen it was the worst day in last 3 month, the CBOE Vix volatility index .VIX, Wall Street’s barometer of investor fear, jumped about 31 percent, its biggest one-day move since October 2008.

All the global Indices were down anywhere between 2 to 6 % and Asia has followed its global peers. Nikkei 225 and Hang Seng are trading down 2% and India will also open in the red today.

Nifty may open around 5230 and and got very good support at 5180, expected trading range for today is 5180 to 5260 on the Nifty.

Market strategy: Short position taken few weeks back are still a hold as market trend is looking down, but if at any point of time during the trade we get 5180 my advice will be to  square off the Short position and we will look for next trading opportunity in May Futures.

Markets have shown resilience in going down in last few trading days but the immediate downtrend  remains intact, so going forward Nifty will remain under pressure and as we already have a good entry point in our Nifty Short position, we can wait and watch things panning out next few days.

Asia is trading with negative bias as markets like Nikkei 225 is down 0.5% and Hang Seng and Shanghai composite both are trading just in the negative territory.

The catastrophic fall is not coming as US markets are showing lot of strength on the charts  that is keeping world markets to trade in subdued bias and not going down with deep cuts.

F&O data suggest that there is renewed put writing going on at 5200 and once below 5200 market can easily slip to levels of 5000 or below.

Market Strategy: Hold on to Short position and wait for the fall in market, if you want you can place  a stop-loss near to  entry point of Short position so atleast some amount of profits are made in this trade, else as charts are suggesting we might make a lot of money if deeper cuts on the Nifty appears.