Indian stock market analysis for 19 sep 2014
NIFTY Sep. expiry future last closed at 8132 with 140 points gain. In Intraday NIFTY, future made high at 8143 while low was at 7956. Total almost 200 points intraday range and closed with gain. On futures side, +7.54% open interest build up suggest strong long addition. On option side, 8100 call options writing was seen which is strong support on downside. Nifty after initial dip recovered on short covering followed by strong long buying. Fed dovish outlook towards interest rates triggered short covering and changed market sentiment in initial hours. Now nifty out look will remain bullish and traders keep buy on dips view. For tomorrow, 8080 is trailing stop loss level for long positions in futures and options. Nifty might expiry at new high in Sep series.
BANKNIFTY Sep. expiry future last closed at 16,203 with gain of 300 points. In intraday BANK NIFTY, future hit high at 16,222 while low was at 15,820. Total 450 points intraday range and closed with gain. On futures, side -2.33% open interest cut suggests strong short covering buy short sellers as well as trapped traders. On option side 16,500 call options writing has been seen. For tomorrow, stay long with trailing stop loss of 16,050 for target 16,400 to 16,500 in intraday.
India VIX active future last closed at 1247 with almost 83 points loss. In intraday NVIX hit high at 1275 while low was at 1243. Total 32 points intraday range and closed with loss. On futures, side +60% open interest addition seen. For tomorrow, expect downside up to 1200.
Hindalco Industries Limited stock closed at 162 with gain. In intraday stock hit high at 165 while low was near 159. For Monday, traders can buy this stock near 160 levels with strict stop loss 155 for targets 172 to 175.