- In December month, the CNX Nifty index witnessed profit taking from the life time high i.e. 8626.95 and lost nearly four percent on monthly basis. And, it was a normal corrective move considering the gains of last seven months.
- Keeping in mind the candlestick formation on monthly chart, we expect Nifty to consolidate further in a broader range of 8150-8630 with bias on positive side. Hence, maintain stock specific approach and utilize decline to initiate fresh long positions.
- Among the sectoral indices, we prefer banking, media, IT and FMCG for long trades while metal, realty and energy may continue trade under pressure.
Sector wise Realty, Media and Cements have seen consistent long build up and good delivery based buying. Some short rollovers were evident in Nifty Futures as well. Oil & Gas, Pharma and Automobiles has been showing some short rollovers and Delivery based selling. The Cost of Carry for Nifty futures is at around 9.15% highest in last one year. 8070 on spots Nifty is the average of selling in Nifty spot. This is the most important support for Nifty in January series.