Markets and News
The last day of the calendar month of July and things are looking not so bright. After a while Dow Jones has ended around 150 points lower and the yield rates have also gone up and they are close to 3% now. This is primarily on the GDP numbers that came at 4.1% that triggered a fear of Fed being more hawkish in rising the interest rates that sparked fears in the minds of investors in US. Asia is also following the trend with most of the Asian markets in red with Hong Kong and Shanghai losing more than 0.5%. Brent crude is in the range of 74-75 dollars which is also keeping us nervous.
On the domestics, slight problems are building up on the Q1 results front with some of the sectors still not performing. Indigo Airlines came up with a disastrous result with profits dropping as much as 96%. The fuel costs were up 54% and that is mainly on the discounts, Idea was another disappointment with only 11.2% growth in margin and revenue is down by 4% and company declared profits only because it sold towers. Tech Mahindra was just about average and nothing much to talk about. D mart has come up with an excellent numbers with revenue up 27% and net profit up by 43% but since the stock has already moved a lot, there is less room for this stock on the upside.
Following are the Q1 results for the day:
1. Ajanta Pharma
2. Bank of India
4. Castrol India
6. Jagran publications
9. Snowman logistics
10. Tata Motors
12. Vedanta Ltd
13. V Guard
On the derivatives front, there has been some action on the downside in Futures market yesterday morning when the Nifty fell after touching 10320 levels and that brought down the overall long positions from 59% to 58% and in the options market also the long calls have reduced in number and the short puts have increased and that brought the Nifty put call ratio back to 1.72 from 1.71. 11300 put saw maximum open interest of 4 lakh contracts followed by 11200 put that had 3.2 lakh contracts and on the call side 11600 call added 4.1 lakh positions and 11400 call added 2.8 lakh positions and 11300 call that added 1.8 lakh contracts. 11700 call also added 1.8 lakh contracts at 20 rupees premium.
What is the Nifty call for the day?
A mildly red Asia means we will also open flat around 11310-11330 range and 11350 might be the top and Nifty has some downward correction left in it. It might go to 11280 and the first support comes there breaking which we can see 11250 levels being touched today. So, a short position at the start between 11310-11330 levels with a target ranging from 11250-11270 can be taken today.