Market set up 2nd August

Market Setup 2nd August

A very busy day yesterday as there were two monetary policies to deal with and both went on the expected way. Fed also came up with its credit policy and the rates were kept unchanged in the US. The US inflation rates seems to be settling around 2% and with jobs growing at  faster pace Fed is keeping its fingers crossed and said it will hike the rates slowly and gradually in the future. The other worry for the US and Asia is the trade tensions with China that are not ending. Yesterday it was expected that some solution might be arrived at, but with nothing happening, Dow Jones fell more than 80 points and Asia today in red with Hong Kong losing more than 300 points.

Domestic Cues

On the domestic front, we also had a credit policy to deal with and there was a 25bps rate hike with RBI keeping its stance neutral. I had given it in my scenarios yesterday that a 25 bps hike with a neutral stance means markets reacting sideways and it happened exactly that way. The inflation target was kept at 5% which means that there is a chance for another rate hike in the coming months. The good news however comes from the Brent Crude which fell below 73 dollars and now its at 72.6 dollars. This will have a great impact on many crude related stocks today.

On the Q1 results front, the positivity is slowly waning off as more and more results are coming in. Tata Motors was a shocker which we are yet to recover from. Even the Auto sales for July also has been tepid with Royal Enfield and Eicher Motors disappointing. The sales of Royal Enfield have been the lowest in the last 11 months. Looks like the mojo of Royal Enfield is finally coming to an end.

Following are the Q1 results expected today.

1. Godrej Properties

2. India bulls housing Finance

3. JK Lakshmi Cements

4. Marico industries



7. Pfizer

8. Torrent Pharma

Derivatives Action

On the derivatives front, there was a lot of buying that has happened in Nifty futures yesterday during the credit policy as many people took long positions around the credit policy time. The Nifty futures premium jumped from 15 points to 28 points by the end of the day and the overall long positions jumped up from 58% to 61% and this is the highest we have seen in last 3 months. On the options front also, the calls have come into demand more than puts and the Nifty put call ratio adjusted to 1.72 from 1.73. 11300 put added 3.3 lakh positions while 11400 call added 3.4 lakh positions. Compared to this 11400 put added 2.7 positions while 11600 call added 2.8 lakh positions.

What is the Nifty and Bank Nifty call for the day?

Asia is down, but India will react more to crude so, we might expect a slight positive start around 11350 on Nifty. You have a long position taken yesterday after credit policy dip at 11320 levels with 11380 as the target and that might be met today. 11380-11400 is a resistance zone and you might have to close your long positions around that level. Today is the bank Nifty expiry and there is a chance for selling a put and the details of it, including the strike and the value will be tweeted by me once the market opens.

Bhagavadgita Chapter 10 Vibhuti Vistara Yoga Verse 16

Chapter 10 Vibhuti Vistara Yoga Verse 16

Ahamaatmaa gudaakesha sarvabhootaashayasthitah;

Ahamaadishcha madhyam cha bhootaanaamanta eva cha.


I am the Self, O Gudakesha, seated in the hearts of all beings!

I am the beginning, the middle and also the end of all beings.


Lord Krishna after speaking about the divine glories of Himself, He continues to talk about the other virtues. He says that He is the self who is seated in the hearts of all beings. The self here refers to the soul of a person and that soul is seated in the hearts of all beings. Not only that Lord Krishna also says that He is the beginning of all beings, He is the middle and he is also the end of them. Here the beginning, middle and end do not refer to a single being but it refers to all the beings in the universe.

Extending Interpretation to Mankind’s Life!

There are two points that I wish to describe in this shloka. First is the usage of the word Gudakesha, to Arjuna. Gudakesha is a sanskrit word that means conqueror of sleep. Lord Krishna says that to Arjuna in a symbolic context. It means Arjuna was able to overcome his ignorance and that is equated to conquering the sleep. Sleeping here means ignorance and living in maya. A person who has overcome that will see illumination and wisdom and when that happens a person will feel as if God is just staying in his heart. When God stays in our heart, we are never influenced by ignorance. We will not do anything that brings us down spiritually.

The next point is Lord Krishna referring to Himself as the beginning, middle and end of all beings. We normally mistake it either for a single person or for the whole mankind. But it is neither of both. Lord here is referring to all beings. One needs to understand the fact that Lord is the beginning, middle and end of all beings in this world. Lets take an example to understand this. We normally refer to “pralaya” or doomsday. Whose doomsday are we referring to here? Is it the mankind’s or of all beings?

The answer is we are referring to only the doomsday for our mankind. The creation of Brahma is not limited to just humans. There were many beings that existed before humans existed and more beings will come even after humans disappear. It is our myth to think that we are the greatest and the more powerful. It is the Lord who is the most powerful. Even the dashavataras of Maha vishnu had other beings like “Matsya” or fish, “kurma” or wild bore, that are not human forms. So, Lord subtly reminds us that all beings are as important to Him as human beings and He is the beginning, middle and end of all beings in this Universe.