Markets and News
Monday blues yesterday with Bank nifty doing much better than Nifty as I have predicted. So, if you had taken a long position in Bank Nifty at the lows you would be sitting on some profits. The global markets are going fine and Dow Jones yesterday gained 300 points on the statements from US that they are not pursuing with sanctions against China and that is a good news. Today Asia is flat, and there are still worries persisting. The Crude is at 79.5 dollars and now its getting prepared to break 80 and start moving upwards probably towards 90 dollars.
Crude is the biggest worry for domestic markets today as petrol and diesel prices are at an all time record high and that would not go well. The dollar index is also at 93.5 which means rupee still could be around 68 dollars and that will make the crude imports worse. Added to that is the disappointments in Q4 results. Both Colgate and Future Retail reported bad results, especially Colgate which reported just a 4% growth in volumes and it has started losing market share in its core toothpaste segment. Today is an important day with SBI, the mother bank coming up with its Q4 results and many are expecting a loss.
Following are the other Q4 results expected today.
1. Andhra Bank
2. Bata India
3. Bosch India
3. Cipla
4. Dr. Reddys
5. Future Consumenr
6. Igarashi Motors
7. Indian Oil Corporation
8. Radio City
9. State Bank of India
10. Bharat Forge
11. TVS Srichakra
12. TV today
13. VIP Industries
Derivatives Action
On the derivatives front, there has been a late surge in the premium in the nifty futures which is bringing in the belief that 10500 might be a temporary support. The Nifty futures premium which was almost zero went upto 20 points by the end of the day, though the overall long positions in Futures is at 52% which is the lowest in this series. In the options market also, the Nifty put call ratio came down to 1.28 from 1.37 and this is because of massive unwinding of puts at various strikes like 10600, 10700 and 10800 where combined 15.6 lakh positions were unwound. 10450 put has built 1.9 lakh positions and at 50 rupees premium 10400 is a firm floor for the market in this series. 10600 call has 13.8 lakh contracts created at 25 rupees premium making 10630 zone a firm roof for this series.
What is the nifty and Bank nifty call for the day?
Expect a flat opening for Nifty around 10500 mark and it might be a support as well as resistance and that depends on where the open actually happens. It is not required that you should trade everyday but if you feel like, then think of going long around 10480-10500 zone with 10550 as the target. It might work out this week if not today but if 10450 is broken you need to exit.
Bank nifty has gained somewhat yesterday and if you had taken long positions around 25700-25750 you are now at a slight profit. Keep a target of 25800-25850 and exit positions and book profits. Wait for a dip to take further call on this.