Markets and News
Akshay Tritiya day and Gold is scintillatingly high. Today Gold is at 32,500 level per 10gms which is the highest ever for any Akshay Tritiya day till now. Global strength in commodities and equities is pushing the Gold. US companies continue to deliver good results, with Goldman Sachs and Netflix coming out with good set of numbers. Trump also has pushed off the sanctions on Russia by few more days and that prompted the US markets to shoot up last night and Asia is following it up with some green today. Crude is also higher with Brent touching 72 dollars again after marginally correcting to 71.10 dollars.
Domestic Cues
On the domestics, the story is the technicals more than fundamentals. Nifty has for 9 trading sessions has ended in positive zone and the last time we have seen that was in September 2014, the initial period of Modi. How many days this winning streak will continue needs to be seen. 10630 is the roof and that level if at all its reached is a 680 point uptick in one month. Nifty is close to that level and we need to be careful. The Q4 results are coming good and Tata Sponge delivered a fantastic result and today it will be the turn of ACC cements to declare their Q1 results and we need to see how it comes out.
Derivatives Action
On the derivatives front, the buying of Nifty futures started once the Nifty dipped to 10500-10520 levels and lot of long positions were built and that took the long positions in Futures to 29% from 27% seen at the beginning of the day yesterday. On the options side also there seems to be demand rising for calls as traders are looking at buying some calls and shorting a lot of calls compared to puts. That brought down the Nifty put call ratio to 1.63 from 1.66. 10600 call saw 2.8 lakh contracts build up while 10700 call saw 2.1 lakh contracts. On the put side there is massive unwinding happening at 10300 put where 5.8 lakh contracts disappeared and 10200 put where 3.4 lakh contracts were unwound. 10500 put saw 5.6 lakh contract build up.
What is the Nifty and Bank Nifty call for the day?
The positive Asian markets means Nifty will open positive to gap up around 10570-10580 range. The positions you took yesterday at 10520 levels with 10580 target will be reached today and you can exit the positions as soon as the target is reached. This is a tight market and you need to respect your targets. Watch out 10600 levels and whether Nifty has the strength to cross that. Its better to wait for a dip probably to 10550 levels before thinking of any fresh positions.
On the bank nifty front its at 25330 levels and you have taken positions at 25220 levels and you are sitting on 100 point profit. You can think of exiting at 25400 or wait for sometime till 25500 is reached sometime this week or next week. Either ways, it positive scenario on bank Nifty.