Markets and News
Welcome to May, the month which is the saying “Sell in May and go away”, and emerging is the slogan “Buy in May and stay”. Behavioral change with time and if we look at last 10 years May has been a good month majority of times, indicating that there is nothing in the market that shows it will fall in near future. Having said that, it is way too early to say all that but globally things are looking very good. Dow has stopped its fall, Crude is now at 73 dollars and the bonds are also stabilizing but the only worry for India is dollar index which touched the all time high of 2018 of 92.
Domestic Cues
On the domestic front, things are looking fantastic with auto sales numbers for April beating expectations. Maruti Suzuki is the topper and today we could see the stock surging further up. The GST tax collections has now crossed 1 lakh crore. I was expecting it to happen in the month of June but they have happened in the May itself. The Q4 results so far have been the best that we have seen in the last 6 quarters with whole range of companies coming with good results. FMCG major Dabur came up with a fantastic numbers with 19% growth in profits. Honey sales grew at 24% and toothpaste at 20%. Expect Dabur to go up.
Following are the Q4 results expected today.
1. Ajanta Pharma
2. Century Textiles
3. HCL Tech
4. Hero Motocorp
5. HT Media
6. Indigo Airlines
7. JM Financials
8. Marico Industries
9. Rane Engines
10. Siemens
11. Tata power
12. TBZ Jewellers
13. Visa steel
Derivatives Action
On the derivatives front, the linear uptrend of Nifty on Monday had a lot f impact on futures market with lot of long positions being taken there. That has now pushed the overall long positions to 58% and at the series it was 53%. On the options front, there has been a lot of consolidation both on puts and calls side and the nifty put call ratio remained flat at 1.53 vs 1.52 at the beginning of the day. The point to note is the buying that has happened at 10600 and 10700 puts as the hedge to the long positions that traders are taking in Futures. These, if the Nifty doesn’t correct will have to be covered, which will give more push to the market on the upside.
What is the Nifty and bank Nifty call for the day?
A flat to negative Asia should not stop India from opening flat around 10720 levels and what happens from there needs to be seen. 10650 is a very strong support and if you have long positions taken on Monday you can keep them to meet the target of 10800. If you don’t have a long position, then any dip towards 10700 should be taken as an opportunity to enter the market by taking a long position with the target of 10800 to be achieved anytime this week.
On the Bank Nifty front, I see it to be more bullish than Nifty and keep the long positions and wait for 25700 to be achieved. Again if you don’t have positions any dip should be bought with 25700 as the target.