NIFTY OUTLOOK & FREE NIFTY TIPS 26 OCT 2016

"BUY NIFTY FUTURE ABOVE 8700 TGT 8728/8748 SL 8670"

"BUY HINDUNILVR 820 PUT @ 4.50 TGT 6.90/8.50 "

The Indian equity market has opened in red with focus in Tata Group stocks. The domestic market is trading in a negative zone. The Sensex and Nifty dragged down by the stocks of Tata Group companies after Cyrus Mistry was ousted as chairman of salt-to-software conglomerate Tata Sons, in a move that caught markets by surprise. The BSE Sensex ended with a loss of 88 points at 28091. The Sensex opened at 28159 touched an intra-day high of 28211 and low of 28014. The Nifty closed with a loss of 18 points at 8691. The Nifty opened at 8722 hitting a high of 8723 and low of 8663.

This week market to be range bound between 8650-8750 points. It could be difficult to break the resistance at 8800 as results of IT companies and Reliance Industries has shown that earnings this quarter may be sluggish. On the upside, the Nifty has significant resistances at 8750 and 8800 levels. A conclusive rally above the second resistance is needed to strengthen the bullish momentum and take the contract up to 8830 and 8850 in the same period. Therefore, traders with a short-term perspective should desist from trading in the index futures contract as long as it trades in the sideways band between 8650 and 8600.

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Supports: 8650 and 8600

Resistances: 8750 and 8800