November starts off with a bang!

The best news is India jumping 30 places above to 100th position in the ease of doing business. Now we are at a touching distance from China which is at 78th position. We never moved so much higher ever in our history from 1950s!! This reminds me of Indian Football team wanting to make it to FIFA World Cup. If this can happen today, very soon good days will come to Indian football team also. Coming back, everyone is surprised with this move and its on taxes that we moved up. Ease of taxes moved from 172nd position to 119th position, which is a superlative jump.

Q2 Results Outcomes!

The other big news is the Q2 results of Bharti Airtel and Indigo which gives you a confirmation that all is well with Indian micros still. The 3rd good news is core sector numbers that come at 5.2% which is the best in many months and shows that IIP is on the verge of recovery. The only not so good news is the auto sales numbers for October which are likely to be flat to down as festival season came bit early this year and most of the sales happened in September. The other bad news is crude prices cross 61 dollars and now trading at 61.20 dollars per barrel. That is a bad news for India with respect to inflation and should start showing up soon.

On the derivatives front!

Yesterday saw some unwinding in the NIFTY futures and the long positions in NIFTY futures came down from 70% to 68%. But still the premium is at a healthy 35 rupees. In the options market the bullishness turned into mild bullishness with put shorting becoming the norm of the day. 8 puts were shorted for every 1 short call and that is still a good news. On the other side, 10,100 and 10,200 puts are being shorted indicating that the range has now gone to 10050 level. On the other hand 2.3 lakh calls were unwound at 10700 call that indicates that the probability of going to 10700 seems to have gone down now. Call shorting picked up at 10500 which has a premium of 70 rupees indicating 10570 as the roof for this series.

So what is the NIFTY strategy for today?

Expect a gap up on the back of ease of doing business news and that the open might be around 10370 level and if the resistance at 10380 is taken out then expect a 10400 intraday. If the rise is sharp wait for 10420 before exiting. If that happens the long positions taken at 10320 yesterday can be exited for a profit of 80-110 points. Do not go short now as still the market is not showing any clear signs of falling. Bharti Airtel and Indigo will shine today.

Q2 results for today

1. Apollo tyres
2. Godrej Consumer
3. Hexaware
4. Kirloskar India
5. Max India
6. Radio City
7. Tech Mahindra
8. TVS Motors