Nifty and bank nifty F&O premarket tips for 4 Feb. 2014
NIFTY Feb. expiry future last closed at 6038 with 76 points loss. In Intraday NIFTY, future made low at 6034 while high was at 6102. Total almost 68 points intraday range and closed with loss.
On futures side, 1.06% open interest shed showing long positions winding up. On option side, 6000 put options heavy writing seen today.
Nifty future is now oversold zone on intraday charts, so expect a technical bounce back but as momentum is bearish keep strict stop loss for against the market long positions. Buy near 6000 with stop loss at 5960 for target 6060-6080 as bounce-back rally target.
BANKNIFTY Feb. expiry future last closed at 10,158 with loss of 119 points. In intraday BANK NIFTY, future hit high at 10,262 while low was at 10,135. Total 150 points intraday range and closed with loss.
On futures side, +5.88% open interest build up short addition continues in market. On option side, 10,500 call option writing seen which is now act as strong resistance on upside.
For tomorrow, expect some consolidation and technical short covering rally. So buy bank nifty future near 10,000 with strict stop loss below 9,880 for target 10,300 and above.
ITC Limited stock closed at 321 with loss. In intraday stock hit high at 325 while low was near 319. For tomorrow, traders can buy this stock around 320-318, zone with Stop loss of 314 and for target 331 on upsides.