TRADE IDEA ON TATACHEM FUTURE FOR 03 JAN 2017

BUY TATACHEM 513 TGT 520/526 SL 505

Sensex ended with a loss of 31 points at 26,595. The Sensex opened at 26,711 touched an intra-day high of 26,721 and low of 26,447.The Nifty closed with a loss of a mere six points at 8,180. The Nifty opened at 8,210 hitting a high of 8,212 and low of 8,134.          

Technically, The Nifty started the session on a positive note at 8,215 with a gap-up at the open. However, the contract started to decline, experiencing selling pressure. Asian markets are trading on a mixed note. The Nikkei 225 is down 30 points at 19,114 and the Hang Seng index is up 209 points at 22,000 levels. The Nifty 50 advances/declines ratio is biased towards advances. Traders with a short-term perspective should desist from trading as long as the contract trades in the band between 8,150 and 8,200. A strong break through 8,200 is required to bring back bullish momentum. In that case, traders can initiate fresh long positions with a fixed stop-loss of 8150.

            The next key resistances are at 8,225 and 8,240 levels. On the other hand, a decisive slump below 8,150 will strengthen the selling pressure and drag the contract down to 8,130 and then to 8,100 levels.

TOP GAINERS:  Ambuja Cement, UltraTech Cement, Tata Steel, M&M, Eicher Motors,

TOP LOSERS:  HDFC, Bank of Baroda, SBI, IndusInd Bank, ICICI Bank and Bajaj Auto