Approaching 200 DMA

CNBC-TV18's Head- Market Reasearch,  Anuj Sinhal:

Whether technicals matter in a market like this or not is a separate debate, but those who have respect for this analysis know that market is right now very close to a decisive phase.

Picture this, the Nifty broke its 200 DMA on the day after budget and has been closing below this mark for 39 days in a row. If we close above 5154 today, this will be first close above the 200 DMA since Feb 29.

Of course, there are major macro and micro events this week which will have a big bearing on the market move and if the news is positive and the Nifty breaks this mark, you will see a lot of traders coming back to this market which will provide it much needed volumes.

But clearly, some of the momentum traders are back big time. After a long time, we saw more than 1 crore shares being added in a single stock future. RNRL added over 1 crore shares on day 1 of new series and it had stocks like TTML, Nagarjuna Fertlisers, Ispat and Chambal for company, all of which added 20-40 lakh shares in Open Int. In fact, stock futures added over 6 crore shares in Open Int

Watch out for Reliance Power. The ex-date for bonus if May 30, which is the first day of June series and on day 1 of May series, it saw June futures adding 22 lakh shares in Open Int

DISCLAIMER: The author is not allowed to trade in equity markets including Futures and Options. His only exposure to capital markets is via shares of TV18 and Network18 granted to him as ESOPs by the company and investments in some long-term mutual funds.