Tracking the global cues we can expect the market to open gap down by approx 100 points and reasons are listed below:
TCS - the stocks opening and 1st hour performance will decide the market reaction today. We expect a gap down with cuts of upto 5%. Another indication is that most of the stocks which led the rally last week are approaching resistance levels and supply zones which limits upside and opens some downside. The same is indicated by SgX.
We have a few gaps on the upside and that needs to be filled before fresh move. I dont say that this is a trend reversal but some bearish consolidation is expected. We keep an open mind on what will happen and trade with the flow.
Nifty. Clear resistance level is 16350. Support comes in at 16050 levels. We should trade within this range with a negative bias.
BankNifty. Bank Nifty basically completed targets of 35300 levels and should retrace towards 34750 and 34500 levels to cool off a little.
Derivative. This is interesting. Data is bullish on Futures and Options front which indicates some buying should come from lower levels.
Open Positions.
TCS PE - Should be in the green today courtesy poor results.
Reliance PE - This should also be profitable around opening. GRM levels in Singapore is falling which is negative along with charts.
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