Nifty Daily

               Friday was an exceptional day. It was the day of the new series and the bears were already clawing nails in the back of bulls with a gap down opening of 25 points. Although morning session was more or less sideways. Nifty kept moving in price band 10-15 point range till the opening of the European markets. The bearish opening of CAC, DAX, FTSE triggered the downward momentum and bears broke the horns of the bulls. The market had a range of 130 points between the high and low.
             Last week nifty had given a bearish engulfing pattern. This week nifty retraced 66% of the last week's fall till Thursday. The weekly candle is gravestone doji with longer upper shadow or wick. This indicates high selling pressure at upper levels of  6100. Nifty has been moving in the symmetrical triangle at top. Yesterdays low was close to the lower trend line of the pattern. With global market closing bearish on Friday night it is likely that nifty might break this trend line by gap down opening. Nifty has made it a trend to break crucial supports or resistance by gaps. Thus it can be expected that 5950 support will not hold this time.

                The target of the pattern is close to 200 dma at 5775.  Nifty has support around the 5860 levels i.e. 50 dma. MACD continues in Sell mode despite being in positive zone. ROC too is negative and continues with its Sell signal. RSI (47) has given a fresh Sell signal by moving below the equilibrium line along with strong negative divergence. Stochastic Oscillator too has given a fresh Sell signal as %K (46) has gone below %D. ADX has further reduced to 26, suggesting the uptrend has lost majority of its strength. Interestingly the Directional Indicators have converged and are having the same value which is suggestive of reduction in strength of uptrend. Thus, majority of the Oscillators points towards bearishness in the short term.

               The Nifty O.I. PCR is at 1.14. For the June month series, highest Open interest build up is seen at 5900 Put and 6200 Call, giving the range for this series. A hugh Call writing and put unwinding was seen at the strike of 6000 on Friday, which suggests an immediate resistance at that level.

                FII have turned seller in the cash market to the tune of 504 Cr. with DII  buying 203 Cr. mode. In the F&O market also FII were net sellers.

	BUY	SELL	NET
INDEX FUTURES	1522.26	3349.80	-1827.54
STOCK FUTURES	2149.20	1887.08	262.12