Nifty Trading Ideas

Market Setup 30th April

Markets and News
Last day of April, first week of May starting on a very positive note. Q4 results are fantastic and even a half dead telecom company like Idea cellular has come up with a good Q4 result where EBITDA beating the estimate and the loss came at close to 700 Cr vs expected 1200 Cr. The global factors are neutral with Dow closing in a flat territory on Friday with GDP of US coming at 2.3% just as expected and Asia is in a green zone today and that might rub off on India. Crude also has settled down at 74.50 dollars and doesnt seem to be moving away.
Domestic Cues
On the domestics, the big news is Indigo CEO Aditya Ghosh suddenly resigning and that happened on Friday evening after markets closed. But somehow the news seem to have leaked and stock fell by 6% on Friday.
We need to see how much more Indigo will lose before settling down. The differences with the owners on how to go for the expansion seems to be the major reason for him to quit. He was the CEO for 10 years from 2008 to 2018 and has brought Indigo from nowhere to being the 4th largest low cost Airline in the World. Now for some good news. Good news is on 28th April 2018 at 5.30PM the last village in Meghalaya was electrified thus completing the electrification of all the villages. India is now a fully electrified country, something which took us 70 years to achieve and it is a great news indeed with 5.97 lakh villages in India completely electrified.
Meanwhile the Q4 results season is on and following are the companies coming up with their Q4 numbers today.
1. Ceat Tyres
2. Container Corp India
5. Kotak Mahindra Bank
Derivatives Action
On the derivatives front, Nifty 70 point upward move has created a lot of buying on the long side in Nifty Futures. The Futures long positions which were at 54% at the beginning of the May series now stand at 57%. In the options market there has been more demand on the puts side and the May series that started with 1.49 as the put call ratio has gone up to 1.52 by the end of Friday. 11000 call saw 7.3 lakh contacts build up while 10900 call saw 5.3 lakh, 10800 call 3.4 lakh contracts respectively. On the puts side 10600 put saw 7.2 lakh contracts, 10500 put 7 lakh contracts 10700 put 6.2 lakh contracts and 10400 put saw 4.1 lakh contracts respectively.
What is the Nifty and Bank Nifty call for the day?
Most of the Asian markets are shut today and SGX is suggesting a slight gap up so we might open above 10700 mark and immediately 10720 will act as a resistance. 10700 was a target for many and that being achieved, expect some profit taking at that level. You might see Nifty correcting intraday and might come down to 10650 which could be a very good level to enter into the market and take a long position with 10800 as the target for sometime to be achieved in this series.
Bank Nifty is a slightly different story than Nifty and with Axis bank recovering and Kotak coming up with its Q4 result today, after the initial cool off it is advised to go long in Bank Nifty with 25700 as the target.

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