The Nifty is likely to be range-bound, with negative bias as select momentum oscillators continue to remain in sell mode on the daily charts, however a tussle will continue between bulls an bears as these indicators still show a buy mode on weekly charts. Thus in such environment where market is range bound with in say 200 points or say as the case is prevalent now as Nifty is ranging between 5500-5700 and thus ideal is to trade with sure stock tips intraday only to make money by virtue of the prevalent volatility.Now Nifty has broken its key support which existed at the level of 5585 and thus we may see it going down to take support at the levels of 5500. Even derivatives data study analysis suggests that market is likely to see the limited downside to the level of 5500 by virtue of the open interest build-up in the Nifty 5,500-5,600-strike call options. If Nifty 5500 level is broken than one can see Nifty getting support at 5410 level. Today BSE market breadth was negative as out of 3,022 stocks traded, 1,694 declined while 1,196 advanced.
Inflation and Reserve Bank of India Likely actions
Inflation is expected to remain sticky and high between August and December and it is likely to ease after December and could slow down to 6- 7% by March 2012. Thus Reserve Bank of India is likely to hike key lending rates by another 25 bps to tame inflation. The RBI would be conducting its first quarter review of the monetary policy next Tuesday. During this time avoid banking and NBFC stocks as this policy update moves these stocks violently.
Stocks to Watch
Hero Honda, Zee Entertainment, JSW Energy and Kotak Mahindra Bank need to be watched by virtue of their numbers being declared. Analysis of the derivatives data suggests that State Bank of India, ICICI Bank, HDFC Bank and Wipro have closed weaker today and thus this fall may continue tomorrow in the suggested stocks. ITC may trade with positive bias as FMCG sector is always the flavor of the market in high inflationary environments.
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Support and Resistances for the Day
| Indices | Support | Resistance |
| Nifty | 5540-5488 | 5618-5670-5700 |
| Sensex | 18465-18223 | 18813 |
Jackpot Tip Profit
| Stock | Profit (Rs) |
| Tip | 1375 (Rs 50,000 Trading) |
Intraday Trading Tips
| Share | Gains (Rs) |
| Tips | 31740 |
Future and Options Daily Paid Tips
| NSE Nifty 50 Stocks | Made Money (Rs) |
| Tipz | 46890 |
Strong future shares at National stock exchange
Hotel Leela, Godrej Ind, TTML, MRF, Petronet, Recltd, PFC, Bata India, Unitech & IRB.
Weak future stocks at NSE
GTL Infra, TV-18, LITL, Orchid Chem, KS Oils, Havells, OnMobile, Escorts, Wipro & Zeel.
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