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NIFTY UPDATE FOR MONDAY
The markets closed with substantial losses last week and all sectoral indices along with both benchmark indices closed negative. The Sensex was down 1.4% and Nifty lost 1.6% over the week. The CNX Midcap index was down 2% while the Bank Nifty also closed with 2% loss. The top Nifty gainers during the week were Tata power, Hindalco, Ambuja cement And Coal India while the biggest loser was Tata motors . The markets lost significantly on friday with both benchmark indices closing below their psychologically important levels of 16,000 and 4900, respectively. Barring FMCG, all sectoral indices closed negative with capital goods, power, auto and oil & gas being the worst performers. IT, banking, tech and metal, too, lost significantly. The Sensex closed at 15965, down 253 points from its previous close, and the Nifty closed at 4842, down 83 points. The CNX Midcap index was down 1.6% while the BSE Small cap index lost 1.2% in today's trade.
I told you That we should be cautious at 4973 level. Nifty breached this level on friday. As per Rsi and Slow stochastic it is in down trend. Nifty 4800 call OI added 681750 and 4900 call added 691500 new shares in open interest. Nifty 4800 put added 370450 and 4700 put added 879100 new shares in open interest. As per open interest data nifty will remain volatile and may slip to 4740-4675 spot level if it close below 4788. As per slow stochastic and RSi on daily chart suggesting that one or two more downside rally is due. invest 50% Around 4740 and 50% around 4675 level to gain opportunity in very short term for the target of 5070-5170. Nifty weekly chart is highly oversold.
Need to be cautious at 4788 Nifty may recover itself from oversold zone. If nifty try to close avove 4840 after touching 4788 level, buy there for the target of 4960.