Weekly view: Nifty may remain range bound in the truncated week Selling pressure likely to get aggravated below 5480.

1) Divis Lab (DIVLAB)

Buy Divis Laboratories August

futures in the range of

962-972. Target 1032. SL

932. Lot size : 250

Rationale:

Divis Laboratories has been consolidating near 940 levels from June on wards However, in the recent up move from 940 levels the number of contracts in Divis future reduced from 2028 to 1617 contracts (closure of 20%).

We believe this is short covering, which can Continue in the coming sessions

 It has also surpassed

the important 50 DMA of 965,

which should Continue in the coming sessions

 

 

2) ACC (ACC)

Sell ACC August futures

 in the range of 1178-1188; Target: 1115, SL 1218. Lot Size: 250

Rationale:

ACC has been moving in the range of 1150-1200 in this month. In the last month, it witnessed six-month

high volumes on July 25 at 1200 leve

ls. Since then, it has been unable to move beyond this level

which indicates towards increasing weakness in the stock.

The number of contracts in ACC futures increased from

1840 to 2064 contracts (an increase of 12%) so far in the current series. It seems to be short addition as the

stock is finding continuous selling pressure on upsides.

We recommend remaining short on any

intermediate pullback in the stock

Weekly view:        

Nifty may remain range bound in the truncated week

Selling pressure likely to get aggravated below 5480.