Nifty Outlook & FII Data – 22 August’2012

The Bse Index Closes on Yesterday at 17885 up 194 Points or +1.10% and the Nifty fasten store at 5421 up 54 points from the previous close or +1.02%. The CNX Midcap index was up 0.3% while the BSE Small cap index gains 0.5% in Yesterday’s Trade. The market breadth was negative with advances at 798 against declines of 634 on the NSE.

Nifty managed to cross its resistance of 5400 and give a closing above it, for the first time since March 16. Banks, IT, cements and power stocks saw strong buying interest.

Nse India Top Gainers in Yesterday’s Trade: Sterlite Industries, Dlf and Sesa Goa.

Nse India Top Losers in Yesterday’s Trade: Bharathi Airtel, Cairn India and Pnb.

Stock Cipher:

  • Wockhardt  has got USFDA nod for generic version of Comtan.
  • Reliance Power would be worst hit if coal block are re-allocated; Tata Power would be least affected by the same.
  • L&T Construction Division bags orders over Rs 2,044 crore since July 1.
  • Tata Steel to redeem convertible alternative reference securities on September 5.
  • Supreme Court directs government, AAI to file affidavits on DIAL ADF levy.
  • Delhi HC issues notice to SEBI on plea to ban algorithm trading.
  • Bayer’s appeal at Intellectual Property Appellate Board postponed to 1st week of September.


  • FII bought 12968 Contracts of Nifty, worth 264 cores with net OI increasing by 12172 contracts.
  • As Nifty Future was up by 60 points and OI has increased by 12172, FII have created fresh longs into Index futures.
  • Nifty Spot closed at 5421 highest level closing in past 5 months, Bulls are going step by step closing above 5350 and than 5400. Now we need a weekly closing above 5400 to make sure this is not a whipsaw.
  • Resistance for Nifty has come up to 5446 and 5467 which needs to be watched closely, Support now exists at 5400 and 5366 .Trend is still buy on Dips till 5255 is not broken on closing basis.
  • Nifty August OI is at 2.63 cores with an addition  of 7.78 Lakh in OI, longs were added by Retailers and HNI and shorts were covered as 5400 NS was Sl for many traders .I expect small range tomorrow probably till 5447 on higher end and 5400 on lower end  with stock specific action looking at OI figure.
  • Total F&O turnover was 1.02 lakh Cores with total contract traded at 2.0 lakh; This is point of concern on small down days we see a turnover of 1.20 lakhs and down day turnover near 1 lakh cr. Also cash volume trades and turnover are less than 10% tommrow which means rally was only backed by short covering not based on delivery based buying.
  • 5300 CE also saw an unwinding of 8 lakhs with total OI now standing at 32 lakhs, Call Writers ran for cover. 5400 CE saw an  unwinding  of 1.41  lakhs and total OI stands at 65 lakhs no major unwinding seen,  5500 CE still having  highest OI of 98 lakhs, with fresh addition of 5 lakhs in OI.
  • 5300 PE added 15 lakh in OI and having the OI at 1.06 cr which suggests traders are getting confident that 5300 will not break in August Expiry.5400 PE also added 25 Lakh in OI so now traders are eyeing 5400 PE as next base for Nifty. With such a huge addition i expect Nifty to once touch 5400 tomorrow.
  • FII bought 141 cores and DII sold 141 cores in cash segment.INR closed at 55.71
  • Nifty Futures Trend Deciding level is 5400, Trend Changer at 5304 NIFTY (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand).
  • 5 DMA at 5376
  • 20 DMA at 5255
  • 50 DMA at 5219
  • 200 DMA at 5116
  • 5-Days Relative Strength Index at 83
  • 14-Days Relative Strength Index at 68. It Indicates Nifty Placed in BULLISH precinct.

NIFTY: RESISTANCE @ It has the First resistance close to the level 5444 and above the level marks the track point at 5466 later zooper levels at 5488 marks.

SUPPORT@ It has the first support close to the level of 5400 and below this level mark next support is seen at 5477 later dipping levels near 5355 marks.


Buy Nifty August Future above 5444 Sl 5422 Tgt 5466-5488 {Or} Sell Nifty August Future below 5400 Sl 5422 Tgt 5377-5355.