As per expectation Nifty has moved down and tested the lower end of the range at 6474. The market being stuck in the range of 6550-6470 is expected to move towards the upper range which is 6520-6550. The hawkish tone in the FED chairman Janet yellen's speech rose the fears of Fiscal stimulus cut, lead to the downward spiral. The traders expect that the FII investments will move from riskier assets towards more secure US treasury bonds as the cutting of US QE starts. I expect the markets to stay in the range for today with positive bias. The move from the lows of 5933 till 6574 has been along a trendline drawn over the period of past month has been acting as important support. a breach of this line will start the correction of the up move. It can also be said that the market is making a FLAG POLE pattern, but a breakout from the flag in next 2-3 trading session is necessary. In absence of such, the pattern will become less effective, if and when the breakout occurs.
STOCKS IN NEWS:**
The support for nifty is at 6470-6442-6406 and the resistance lies at 6518-6540-6575.
Nifty March Future has been trading at 17-18 points premium to the spot. The
implied volatility on the Nifty March Options of ATM strike calls were at 15.40
and for puts were at 11.95. India VIX closed at 16.91. PCR for Nifty based on
open interest was at 1.16 and PCR for the day based on volumes was at 1.09 for
the market.
CASH MARKET:
FII 3528.74 - 2806.72 = 722.02 Cr.
DII 945.3 - 1508.59 = (563.29) Cr.
FII DERIVATIVES MARKET:
| In Cr. | Buy | Sell | Net |
| INDEX FUTURES | 1595.81 | 1728.62 | -132.81 |
| INDEX OPTIONS | 15766.94 | 15732.19 | 34.75 |
| STOCK FUTURES | 2931.17 | 3555.54 | -624.37 |
| STOCK OPTIONS | 2121.62 | 2247.19 | -125.57 |
STOCKS IN NEWS:**
Axis Bank Ltd: The much awaited stake sale in Axis Bank by the Government-owned Specified Undertaking of the Unit Trust of India (SUUTI) is scheduled to take place via special block window on Friday.
Financial Technologies Ltd: With Sebi declaring Jignesh Shah-led Financial Technologies unfit to hold shares in stock exchanges and other related entities, it will have to dispose of holdings worth about Rs 2,500 crore in five companies.
UCO Bank: State run Uco Bank said it has sold bad loans worth Rs 1,500 crore to an asset reconstruction company to clean up its balance sheet before the end of the fiscal.
Reliance Industries Ltd: After two months of increase, natural gas production from Reliance Industries' eastern offshore KG-D6 block has again started to drop.
Tata Motors Ltd: Tata Motors-owned Jaguar Land Rover has invested 45 million pounds in a new press line at its Halewood Operations, near Liverpool, England in a bid to speed up delivery of the company's vehicles globally.
Claris Lifesciences: Ahmedabad-based pharmaceutical firm Claris Lifesciences will buy-back shares aggregating 14.49 per cent of its total equity capital from shareholders for a total of Rs 231.25 crore.
Geometric: IDBI Trusteeship Services on Thursday offloaded 3.64 lakh shares of Geometric for over Rs four crore, amid reports of a private equity player eyeing Godrej group's stake in the software service provider.
GMR Infrastructure: The infrastructure major said its shareholders have approved issue of Compulsorily Convertible Preference Shares (CCPS) worth Rs 1,136.67 crore to a group of investors, including an arm of Singapore-based investment firm Temasek Holdings.
GlaxoSmithKline Consumer Healthcare: Leading bourse National Stock Exchange (NSE) said it will exclude GlaxoSmithKline Consumer Healthcare from the Futures and Options segment with effect from May 30.
Canara Bank: State-owned Canara Bank said it plans to raise Rs 1,000 crore from bonds to fund business growth. The bond committee has decided to raise additional capital of Rs 1,000 crore through issue of Basel-III complaint Tier-II bonds, Canara Bank said in a filing on the BSE.
Financial Technologies Ltd: With Sebi declaring Jignesh Shah-led Financial Technologies unfit to hold shares in stock exchanges and other related entities, it will have to dispose of holdings worth about Rs 2,500 crore in five companies.
UCO Bank: State run Uco Bank said it has sold bad loans worth Rs 1,500 crore to an asset reconstruction company to clean up its balance sheet before the end of the fiscal.
Reliance Industries Ltd: After two months of increase, natural gas production from Reliance Industries' eastern offshore KG-D6 block has again started to drop.
Tata Motors Ltd: Tata Motors-owned Jaguar Land Rover has invested 45 million pounds in a new press line at its Halewood Operations, near Liverpool, England in a bid to speed up delivery of the company's vehicles globally.
Claris Lifesciences: Ahmedabad-based pharmaceutical firm Claris Lifesciences will buy-back shares aggregating 14.49 per cent of its total equity capital from shareholders for a total of Rs 231.25 crore.
Geometric: IDBI Trusteeship Services on Thursday offloaded 3.64 lakh shares of Geometric for over Rs four crore, amid reports of a private equity player eyeing Godrej group's stake in the software service provider.
GMR Infrastructure: The infrastructure major said its shareholders have approved issue of Compulsorily Convertible Preference Shares (CCPS) worth Rs 1,136.67 crore to a group of investors, including an arm of Singapore-based investment firm Temasek Holdings.
GlaxoSmithKline Consumer Healthcare: Leading bourse National Stock Exchange (NSE) said it will exclude GlaxoSmithKline Consumer Healthcare from the Futures and Options segment with effect from May 30.
Canara Bank: State-owned Canara Bank said it plans to raise Rs 1,000 crore from bonds to fund business growth. The bond committee has decided to raise additional capital of Rs 1,000 crore through issue of Basel-III complaint Tier-II bonds, Canara Bank said in a filing on the BSE.
STOCKS IN BAN PERIOD:
| L&TFH |
Source:**economictimes.com , nseindia.com
Stock of the Day:
TATAMOTORS
Tatamotors has been on a steady decline for past few days. However the stock look poised to start correction of the down move. The stocks has closed near its 50DMA & 100DMA. Thus the level of 378 has created a strong support for the stock. The RSI value is near 40 levels indicating a short term support. Thus one can buy the stock for the target of 384.75-387 with stoploss of 376.5
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