Markets and News!

What a day to begin with!
Thursday that’s going to start on a perfect bullish note. Dow Jones was on fire last night and Dow Jones climbed the 26000 mark gained 300 points. S&P 500 is now above 2800 all this coinciding with Sensex climbing 35000 mark. Asia is also green today and India is likely to open on the same green note. Crude is also under control at 69 dollars and all this are adding to fantastic domestic cues.

Domestic cues

Things are looking brighter and better today, for the first time in 2018! First was the Govt borrowing coming down by 30,000 Cr which propelled bond markets and brought down bond yields. Second, is the announcement of Finance ministry of considering 100% FDI investment in Private banks and 49% FDI in PSU banks. This is a real game changer and Bank Nifty, especially private banks will go up on the news. HDFC, Kotak, IndusInd, Yes bank are going to be the major beneficiaries. Till now Private banks are capped at 74% now. In PSU banks FDI limit is 20% till now and it is proposed to be raised to 49%.

Q3 results push

The third good news is the Q3 results of HUL. What HUL has done is something unthinkable. They reported 23 quarter highest revenue growth and volumes crossed double digits, profit crossed 20% and though the stock is valued 48 times to its earning HUL is likely to celebrate it. Many brokerage firms have revised the HUL targets to 1600-1700 in the near terms. Bharti Infratel was average but HUL has started the fire works for Q3 and now the next stoppage is probably 11,000.
That means we are now 10% away from the 10,000 mark and we might not hit soon. Today also there are lot of Q3 results coming and these are some of the important Q3 results coming
1. Adani Ports
2. Bharti Airtel
3. DB Corp
4. Mastek
5. Ultratech cement
6. Yes bank
7. Jubiliant industries
8. Kirloskar India

Derivatives Watch

On the derivatives front yesterday saw a perfect 50-50 built up in long and short positions and Nifty futures premium is now at 10 rupees which is a good sign. On the options front, there has been a sudden surge in 11000 call options and 1 lakh positions got created there. This is an indication that there is a good chance for 11000 to be touched in this series itself.
On the call side it was unwinding of positions. With NIFTY on fire, call sellers got panicked and started unwinding their positions. 10700 call saw 4.5 lakh unwinding, 10800 call saw 3.5 lakh positions getting unwinded. Even 10900 call saw 2.6 lakh contracts getting covered and all this created a mini panic. On the put side 10700 and 10600 have seen maximum short puts. 10700 saw 4.2 lakh positions and 10600 saw 3.2 lakh positions getting created. There is now 10800 put also that is coming for shorting. It has a premium of 65 rupees and that means 10730 is seen as the base. This pushed the Nifty put call ratio to astronomical 1.76 levels.

What is the NIFTY call for today?

All the factors will make NIFTY open above 10800 and another all time high open. We might get 10850 today morning and 10820-10850 is the perfect position to exit the long position taken at 10600 level. That makes you richer by 200-220 points and enjoy your profits. Today there might not be much trade on Nifty but being the weekly expiry for Bank Nifty it is better to eat some premiums. Short the 26400 put to get 110 rupees and 26300 put shorting will give you 55 rupees. 26400 call at 110 will give you cushion upto 26290 and you are safe. You can even go for a Bank Nifty call buying also. 26300 call at 65 rupees can be bought for a target of 100 rupees.