VIX decreased by 3.55% and reached 11.88 - Greshma Shares and Stocks

After witnessing a energetic rally in the previous session, Nifty consolidated on Friday exhibiting a lacklustre trading session as investors turned cautious and booked profits ahead of the September F&O expiry week. However, some relief came on account of low level buying by funds and retail investors, driven by rising optimism over trade ties with China. India has signed a 5-year trade and economic cooperation agreement with China with a view to improve the trade balance and obtain $20 billion Chinese investments. Besides, sentiments also remained upbeat as fears of capital outflows receded on US Fed's continued pledge to retain rates at low levels. However, upside gains were capped as selling by foreign funds weighed on some investor sentiments.

TREND: Trend is up and can turn down if close will below 8063. On daily chart, Nifty has been taking three time support of its support line as shown in chart and gave bounce back. At this level, 8180 is strong resistance if nifty sustain above this then 8264-8300 can be seen. Yesterday Nifty made doji candle which is in nature indecisive candle so today's likely range for Nifty is 8161-8121, either side breakout could drag nifty to that direction. Downside support come at 8063-8039-7950 while upside resistances come at 8180.

Nifty likely to open negative following on global cues.

The VIX decreased by 3.55% and reached to 11.88, The Nifty increased by 6.70 points or 0.08% to settle at 8,121.45. Nifty September 2014 futures closed at 8131.00 on Friday at a premium of 9.55 points. While Nifty October 2014 futures ended at 8182.10 at a premium of 60.65 points. Nifty September futures saw contraction of 0.84 mn units, taking the total outstanding OI to 12.74 mn units.

The Nifty PCR finally stood at 1.13. The top five scripts with highest PCR on OI were OFSS (2.75), DRREDDY (2), Maruti (1.36), Kotak Bank (1.36) and Cipla (1.29).

Source : Equity Bulls

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