Markets and News

We are into 3rd week of February and its a week with just 4 trading sessions. Today is like a Friday as tomorrow markets are closed for Maha Shivratri. Volatility continues to be there on US markets and on Friday Dow Jones swung more than 1000 points and closed positive. S&P 500 also was up nearly 40 points and things look settled as of now.

Asia is in green and that is good news for us. Bond Yields continue to go higher in US and they have crossed 2.85% but brent crude is falling and has touched 63 dollars. We are just a dollar away now from Porinju’s target of 62 dollars!

Domestic Cues

On the domestics things are not as bright as they look globally. SBI came up with a shocker of a result and that will have a huge impact on the market for sure. SBI reported more than 2400 Crore losses and the gross NPAs rose above 10%! The merger of the other SBI subsidiaries seem to be having a lot of impact on it. Slippages have gone up by a record 143% to cross 25,000 Cr and this is by no means a smaller number. SBI for sure will lose lot of its value today.

Following are the other Q3 results expected today

1. Aban offshore

2. Bank of India

3. Corporation bank

4. GAIL

5. Hathway cables

6. Hindustan Motors

7. Indian Hotels

8. JK Tyres

9. Lambodhara Textiles

10. Mukta Arts

15. NHPC

16. PFC

17. Zuari cements

Derivatives Action

On the derivatives front, the Nifty futures have shed lot of open interest on Friday and lot of short positions have been taken on Nifty futures and the result is the long positions which were 80% at the start of the series have come down to 48%. The Nifty put call ratio dropped below 1 and has gone to 0.89 which is the lowest in the long time. Today will be another day as the expectations would be Nifty will stabilize and wont fall below 10400 mark.

What is the Nifty call for the day?

US markets closing at a high and Asia being in the green would mean we will have a positive start on the NIFTY today. It might open at 10480 level and the first level of resistance will be at 10520-10550 band. Its tough to overcome this band as the 50dma will strongly stop Nifty there. On the downside 10390 might offer a support. Tomorrow is a holiday and its better to take a long position around 10450-10480 zone with a target of 10550 for today or Wednesday.

What is the bank Nifty call for the day?

Bank Nifty in my opinion might start a bit negative mainly due to SBI which will pull bank nifty down. 25350 might act as a support and if it is held then it is better to go long on Bank Nifty there with 25700 as the target and it might be achieved on Wednesday or anytime this week