"BUY RELIANCE FUTURE ABOVE 1055 TGT 1064/1072 SL 1040"
See-saw movement was there in the market today. Both the indices the sensex
& nifty was trading on mixed note. The Sensex rose over 100 points and
Nifty closed above its crucial psychological level of 7700 in trades today. The
Sensex advanced 123 points to close at 25146 and Nifty jumped 38 points to
close at 7709. Nifty & sensex got boosted after the country's only private
weather forecaster said 2016 monsoon rains were
likely to be above average. Monsoon rains are expected to be 105 % above a
long-term average, with a 35 % probability of above average rainfall, Skymet
had said in a statement on Monday. State-run India Meteorological Department is
expected to issue its forecast later in the day. Above average monsoon rains
play a key role in boosting the demand for an array of consumer goods, as 70
% of India's 1.3 billion people live in
villages. However, broader gains were capped as companies geared up to report
earnings. Among major companies, software services provider Infosys is due to
report its results on Friday. Market is taking monsoon forecast news positively
but the important trigger will be the earnings report and global cues.
Today’s
price action shows that there is lack of strong selling interest in the market
to drag the index futures below 7700. Immediate resistance is at 7750. A strong
break above it can take the contract higher to 7780 and 7800.
Short-term
traders with high risk appetite can go long. Stop-loss can be kept at 7680 for
the target of 7750. Intraday dips to 7700 and 7670 can be used to accumulate
longs.
At
the moment, there are no positive triggers that could drive markets upwards, so
we could see a range-bound trend between 7600 to 7780 on Nifty.
Supports
for the contract are at 7670 and 7750.
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Strategy:
Go long with a stop-loss at 7680
Supports:
7680, 7650
Resistances: 7750,
7780
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