Yesterday’s predictions were bang on and today it seems nothing much has changed. Globally things are going steady and Japan elected the same Govt with a 2/3rd majority and the focus remains on growth and on aging population. For a change, US markets didn’t close positive or at all time high. The Q3 results are doing its damage there with GE reporting a loss after a while. That has rubbed off on Asia and even Asian markets are subdued. Domestically it’s the Q2 results is having a big impact on the way the markets are moving. All this is coupled with the fact that today is the 2nd penultimate day for expiry and rollovers will be highest today.

On the F&O front

There is a huge shift that is seen from Futures to calls and that is interesting. After correcting for the discount yesterday the premium moved up because of buying but by mid day the Futures premium started falling again. At the end of the day the premium stands at 12 rupees and with 2 trading sessions left for expiry day its a good position to be in. On the options front, 10100 and 10200 put are being shorted and there is buying happening at 10100 call which is interesting. The call premiums have gone up to 112 rupees for 10100 call because of that. Today the same call might be shorted and traders would want to eat the 112 rupee premium. But the favourite strategy for today seems to be short straddle at 10200 which has a combined premium of 90 rupees. Yesterday it was 120 rupees. If you go for this today you can still eat 90 rupees. That makes this the traders favourite. The put call ratio is at a reasonable 1.53 now. That also shows the range bound nature of NIFTY.

So what is the strategy for today for NIFTY?

NIFTY is likely to open flat around 10180 mark and again 10200 and 10220 will offer strong resistances. On the downside 10120-10130 will be a big support. The close might be flat again with slight negative bias. Under these markers shorting 10100 call or 10200 call which has 44 rupees premium is the best strategy.

Q2 results for today

1. ABB
2. Ambuja Cements
3. Asian Paints
4. Canbank financial homes
5. HDFC bank
6. ICICI Pru life
7. Infosys
8. L&T housing Finance
9. Radico Khaitan
10. Raymonds
11. Saregama
12. TTK
13. Visa steel
14. Zee Entertainment