Happy Deepavali to all! South India celebrates Deepavali today so let the festivities begin!

Quarter 2 Earnings

The news is not great as Q2 earnings now starting to disappoint a bit! Axis bank is a big disappointment with slippages up by 250% from 3500 Cr to 9000 Cr! Total income just went up close to 1% and the net profit is the only good news with 35% jump to 432 Cr. The other results are also mixed. Wipro came up with a decent results but the guidance is a bit disappointment. Bajaj Auto also disappoints a bit with the net profit dropping a bit by 1%. The positive however is from Federal bank and ACC cements, which came good. ACC has its sales going up by 9.5% and its profit has almost doubled to 181 cr. So all in all the Q2 results presents a mixed picture with slight disappointment!

Markets Outlook

The US markets are celebrating their Diwali as Dow is just 3 points away from touching 23000 and maybe today Dow might do it. The derivatives markets also presents a mixed picture. There has been a lot of buying seen in NIFTY futures and the futures premium continues to be at 22 rupees which is an interest of 0.20% for 4 days!!
That’s really huge premium to be paid. On the options side, 10250 is seeing some action indicating that 10200 could be a base. At the higher level 10400 calls are getting sold more now. All this could be a deception and one needs to be bit careful before taking positions. Bank NIFTY also has picked up with 25000, 24900 and 24800 calls in action.
They together generated 10.5 lakh contracts. 24600 and 24400 puts are also active creating 4.4 lakh contracts. Looks like there is lot of call shorting in bank nifty at higher levels and put buying at lower levels indicating a bearish trend. So today could also be one such day for the Bank NIFTY. 24800 call has a 25 rupee premium and a good option to eat it. Even 24700 call at 51 rupees can be shorted today. So Bank NIFTY weekly expiry is on bearish side as of now!

What happens to Nifty today?

NIFTY might open a bit down at 10220 levels and might find resistance at 10250 and might stay below it. 10180 will continue to be a support. Hold your positions and wait for the target of 10300 to be reached. Focus on Bank NIFTY today more than NIFTY.

Q2 results today

1. NIIT
2. Ultratech cement