settlement day!!!

Nifty after breaking 5416 level closed at 5398. The outlook turned negative as of now. As seen from more buildup of August call options at 5500 from 5600 the  upper range shifted down. The lower range is also expected at first to touch 5300 level. Relianace sentiment turned down. Target 980 medium term. Banks are required to correct further. Settlement may be around 5320-5350 to 5400. Global cues are negative for tomorrow. Friday nifty has to test 5300 level?

Ready for settlement?

Nifty today reacting to the RBI credit policy closed at 5430. Bullish as of now but no steam. Maximum possibility is that nifty closes above 5400 (may be there itself for settlement with a chance of breaking the 5400 level before the close). As per next month option buildup nifty has to touch both the levels at 5300 and 5600. As the market is not showing more steam as of now it is expected nifty to touch 5300 level first and to rise up ward later. FII data  negative in cash markets for the first time and balanced in F&O. Global cues may not impact the markets for this week. 

Market direction: post 18 K sensex.

Now that sensex crossed 18000 mark and closed above this psychological level on second day too.

Now the events to observe are RBI credit policy, Q1 results analysis. Till now all the results are good. RBI credit policy will be over in a couple of days.

As per F&O data every thing is positive. FII data is positive in cash market segment. Globla cues are turning to positive.  It is expected a positive trading on Monday too but for the next three days of settlement will be flat to downward bias.  Settlement is expected to close at 18K sensex and Nifty 5450-5500 zone.
But, the continuation rally is expected for the next settlement nifty target to 5600 with a stop loss 5300.

Nifty levels for 16-7-2010 : Nifty is in falling channel, support is at 5340 for the day. Bullish above 5400 and bearish below 5325. Break point 5380. Means short below 5380 stop loss same and vice versa.  Global cues are mixed. F&O data is not bearish.