Today’s session goes to bulls, but the increase in price is not backed by the open interest in Index futures as FII’s are sellers in the derivative market. They have Sold 326 crores in Index futures and sold 696 crores in Index Options. FII’s increased their short positions by 7.4%.
Aggressive traders who have short positions created at 8940 levels can continue to hold their positions with a stop above 9020 spot levels for target of 8800.
Nifty Spot: 8963.45(+65.90)
Nifty Futures: 8979.15(+56.35)
Support: 8860, 8820
Resistance: 8980, 9020
Technical Chart Pattern: Bullish Reversal Pattern
Events to watch: UP Election Results on 11-Mar-2017 and FOMC Meeting outcome on 15-Mar-2017
Strategy: Wait for the confirmation to go short (i.e. below 8860 levels) and long(i.e. above 9000 levels).