NIFTY MARKET STRATEGY FOR TODAY

Nifty levels:  

Nifty spot close @8522

Nifty future close @8537

Today’s view on Nifty

Good recovery from lower level keep buying on dips, as nifty closed above its resistance level, so good buying opportunity we may see 8600-8650 levels.    

Bank Nifty levels:  

Bank nifty spot close @18825

Bank nifty future close @18868

View on Banknifty

Buy as remain above 18400, consolidation seen from upper level, so be cautious we may see profit booking. No sell keep buy on dips.

MARKET COMMENTERY

Banking, cement, pharma stocks and index heavyweights HDFC, ITC, Reliance Industries (RIL) and L&T led a strong intraday rebound on the domestic bourses. After staging a strong intraday rebound in afternoon trade, key benchmark indices surged in late trade as European stocks and US index futures trimmed intraday losses. However, by the time India's stock markets had closed at 15:30 IST, European stocks had weakened once gain. Asian and European stocks edged lower today, 6 July 2015, after Greek voters overwhelmingly rejected reform measures put forward by the country's international creditors in a referendum held yesterday, 5 July 2015, a result seen as increasing the chances of Greece exiting the shared currency. The strong intraday rebound for key benchmark indices in India materialised as global crude oil prices slumped. The decline in crude oil prices augur well for India.

STOCK BUZZ

1. Kotak Mahindra Bank rose 1.33%. As per reports, the Foreign Investment Promotion Board (FIPB) on Friday, 3 July 2015 cleared the bank's proposal to raise foreign investment limit to 55% from 49%. Kotak Mahindra Bank had approached FIPB after the Reserve Bank of India barred overseas investments in the bank as foreign shareholding hit the permissible threshold following the merger of ING Vysya Bank with Kotak Mahindra Bank.

2. Index heavyweight and engineering and construction major L&T advanced 0.68% to Rs 1,820. The stock hit high of Rs 1,822 and low of Rs 1,766.60.

HOT PURSUIT

1. Meanwhile, the monsoon has entered a weak phase if the data released by the India Meteorological Department (IMD) is any indication. For the country as a whole, cumulative rainfall during this year's monsoon season was near normal until 5 July 2015. This is a far cry when compared to a reading 24% above the Long Period Average (LPA) for the South West monsoon until 24 June 2015. Region wise, the southwest monsoon was 5% above the Long Period Average (LPA) in Northwest India, 2% above the LPA in Central India, 2% above the LPA in South Peninsula and 4% below the LPA in East & Northeast India until 5 July 2015.

2. The IMD said in its daily monsoon update issued yesterday, 5 July 2015, that the Southwest Monsoon was active over Arunachal Pradesh and Sub-Himalayan West Bengal & Sikkim and Normal over Assam & Meghalaya, Gangetic West Bengal, Jharkhand, Bihar and Coastal Karnataka during past 24 hours until 8:30 IST.

OPTION STRATEGY

1. In today’s session we have seen call buying in nifty 8600 call so we can consider this as a strong resistance.

2. KOTAK BANL 1500 & 1520 CALLS were so active, stock is really in bullish move more rally is expected up to 1460. 

3. AMBUJA 240 calls were in action today, stock showed us gain from lower level, more buying above 230. 

STOCKS TO WATCH

ZEEL:  

Buy ZEEL above 369 stocks may show 378-382 in coming days, Below 369 major support will be 359.

TATASTEEL:

Sell TATASTEEL as remain below 300 we may see some new lows. Buy only above 300.

ACC: 

Buy ACC as remain above 1480 stock may show 1530/1550 level in coming days, below 1480 major support 1450.

TOP PICKS OF THE DAY

1. BUY ONGC ABOVE….? TGT…..?STOP LOSS……?

2. BUY GAIL ABOVE…..?...TARGET….?..STOPLOSS…?

3. SELL AMBUJA BELOW….? STOCK MAY SHOW 210/200 LEVEL IN COMING DAYS WITH STOP LOSS…?