Resistance for Nifty at 6320-6350: Way2Wealth.com

Way2Wealth.com's Derivative Report:

Indian bourses opened on flat note in yesterday’s session but soon bulls took control of the markets and drove nifty towards 6300 levels. Fresh buying was seen in banking, capital goods, oil & gas, metals and infra sector that helped Nifty to close above its stiff resistance zone of 6280 levels gaining almost 77 points. Fresh long positions were added in Nifty and Bank Nifty fut. whereas CNXIT fut. saw profit booking from higher levels. Nifty fut. added almost 10.85 lakh shares whereas premium increased to 36 points from 17 a day before. Unwinding of short positions was seen in metals, power and telecom sector. Major short covering was seen in stocks like YES Bank, Tata Global, Power Grid, Sesa Sterlite, Reliance Infra and Hindustan Zinc.

Long positions were added in stocks like Tata Chemicals, MRF, Axis Bank, ICICI Bank, Century Textiles and Crompton Greaves. Selected short buildup was seen in technology sector and stocks like HCL Tech, Dr Reddys Labs, Sun Pharma, Glenmark Pharma and Jaiprakash Associates. Continuing bullish trend, markets will open on strong note and thereafter will continue to trade with positive biasness. However on higher side Nifty will face stiff resistance around 6320-6350 levels and from those levels profit booking is expected.

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