Patience is a virtue that everyone has to practice, whether its trading or investment. Trading being short in time reverses quickly and investments being long term entities take a longer term to recover. Here am referring to the long positions you have taken on Monetary policy on 1st August at 11310-11320 levels with 11380-11400 as the target. Next day what we saw was a 100 point loss to Nifty and 11250 levels was reached giving a huge worry sign. But if you have held on, then the next day saw Nifty gaining 110 points to come back to 11360 erasing all the losses. Today it is on the verge of opening at the targeted range of 10380-10400 are you can happily book your profits.
Almost 18 months ago with the intent of helping people and give tips to them, I started off this market set up and now I have come to the point where I feel that what I have set out for is more or less achieved. Many would have observed the technique of predicting and would have got benefited from whatever tips I have given. Now is the time for me to move on to some more things and this week could be the last week of my market set-up and I am intending to discontinue it by the end of this week ie 10th August.
Coming to markets, it was a great Friday with US markets marching ahead and gaining more than 120 points. Apple is on the roll and it has gained another 0.5% to its market capitalization that has crossed 1 trillion. There was no adverse overnight news except the fact that Yuan has further weakened with respect to dollar and it is at 6.82 level, which is the lowest in a year. But Asia is not reacting much and Hong Kong is more than 300 points up. Brent Crude is also up and has crossed 73.5 dollars and that should be a cause for worry.
On domestic front, the Q1 results have been going more or less fine and Berger and KEC also reported good earnings. Suzlon however was a disappointment that reported below the par earnings. Titan is a star performer and it is expected to maintain its 35% revenue growth. On the IPO front the big bot HDFC AMC is going to be listed today and if you remember it has seen a 190x times subscription and today we all need to see at what level it will open.
Following are the other Q1 results expected today.
1. Adani Ports
2. Adani Power
5. Dena Bank
7. Syndicate bank
8. Ujjivan bank
9. Visa steel
On the Derivatives front, there was a rapid surge in the futures positions that were taken on Friday and the overall long positions have surged back to 62% from 59% on Friday. The options market also has seen a lot of activity on the put side and the put call ratio is now slowly reaching the overheated levels. It was at 1.73 by the end of the day up from 1.62. 11300 put added 7.7 lakh contracts and closely behind it was 11200 put that added 6.1 lakh contracts. On the call side only 11600 call added 3.5 lakh contracts and 11700 call added 2.2 lakh contracts.
What is the Nifty call for the day?
A green Asia means a positive opening for Nifty and Nifty might open around 11380-11410 levels and most probably it might open at a new all time high. You have a target of 11380-11400 and that will be met. So, exit your positions at 11400 and then see how Nifty behaves. 11420-11440 is a strong resistance and we might see a dip towards 11350-11370 intraday. I would not suggest any new positions at this level as we need to understand if this break out has the legs to take Nifty past 11500 to 11600 or so levels. So, for today exit and celebrate your profits!!