NIFTY X-RAY REPORT FOR 08 MARCH

The market gave today unexpected sharp breakout above 5830 with CNX realty was the best performer in today's trade also while metal sector was the biggest looser in today's session . The Sensex closed at 19413.53, up 160.93 points from its previous close, and the Nifty closed at 5863.43, up 44.70 points. The CNX Midcap index was up 0.64% while the CNX Smallcap index gained 0.62% in Today's trade. The market breadth was positive with advances at 591against declines of 499 on the NSE. The Bank index was up by 0.79% in todays  session. Hero moto corp jumped 4.61% with highest gainer on nifty 50 group while Jindalstel was the biggest looser with -1.99% in today's session.

Nifty closed with positive sentiment up 0.77% in today's session. As per nifty Relative Strength Indicator (RSI), was placed in oversold zone till previous week however recent price pattern on nifty daily chart has indicated trend reversal with improving RSI towards upside in near term and it seems that nifty has made strong base near 5700 and, stock may give more rise from here in near future. Nifty was in short term down trend till yesterday but now as it has given closing above 5850 it has come in up trend in very short term point of view. A good Bullish engulfing Candlestick pattern has formed on NIFTY EOD chart in today's session Prior to pattern formation this Index was in downtrend. As per slow stochastic , NIFTY has come in strong positive zone, currently MACD is not giving any signal. Nifty was in consecutive downtrend since five weeks but reversal given this week.

Nifty 5700 put has highest open interest at 99 lakh on the put side indicating strong base for the march series ahead.  Nifty 5800 put added 1,207,600 fresh contracts today and added 1,454,600 fresh contracts yesterday in open interest. Total 2,662,200 contracts added in two days indicating strong support around 5800 in near term. 6000 level has highest open interest on the call side indicating higher boundary upside. As nifty was up by 44 points and open interest added in 5800 put indicating strength towards upside after continuing down trend. Put call ratio has improved from 0.94 to 1.05 level indicating that price may go more higher in further direction.

FIIs bought index future worth Rs. 410 cores and open interest decreased by 8960 contracts, as nifty future was up by 48 points and open interest decreased indicating that FIIs have covered their shorts which they been carried from last months.

LAST   HIGH - 5878  LAST LOW - 5801
WEEKLY HIGH - 5878 WEEKLY LOW - 5663
5 DMA DAILY - 5777
20 DMA DAILY- 5846 

50 DMA DAILY- 5942

200 DMA DAILY- 5563200DMA@5563

I had written in my previous post " that previous high and low will be very important for todays session  and any side breakout will give a clear direction". As we saw today that nifty formed another green candle on nifty daily charts. It took more than three hours to break upper level of previous high. Today nifty has closed above 20 day moving average after 24 days indicating a strong up trend in near future.  I have given you indication That nifty may rise in further direction and it had taken resistance exact at my projected level near 5830 on 6 march. Nifty was in strong down trend on both daily and weekly chart. 5700 put open interest reached at 99 lakh just after five days of new series indicating that 5700 level is not going to break in March series, so expecting that 5700 level will break in March it will be little unmatured analysis.  As per Today's session nifty has given bullish jump in todays session also and closed above 5850 strong resistance which was budget day high. Todays nifty has touched the upper falling trendline. If nifty sustain here above 5850 and break the trend line another blasting move we may see in very near term. However it has taken resistance at higher channel indicating hurddle at this level. If break this channel nifty will give further more spike from this zone. Nifty has formed a double top formation around 5970 in this down wave may create strong obstacle at higher level. Trend is now buy on dip mode in short term point of view. Untill unless nifty cross 5970 bulls can not come in full confidence. 

In short as long as nifty is above todays low (5801) short term and mid term bias will remain positive. As per impulse in price pattern it seems that nifty will give surprise to everyone in this month and there will be no wonder if nifty made a new high in this series.

Short term stoploss for long trade at 5801 spot price
Target expected - 5930 and if broken than 5970.

If stoploss hit reverse your position towards short side with stop loss coming at 5880

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