Markets and News

Another day of uncertainty and globally things are looking very uncertain. The global bond yields are steadily on the upswing and the result is equities are all down, whether it was Europe last evening or US last night. Even today morning Asia is slightly in red with Hong Kong down by 150 points. That means Nifty is also going to be in the red at the start. The only bright spot in all this is the Brent crude which has come back to 68 dollar levels and porinju did tell about it on the day Govt said crude will go to 80 dollars he was the one who said crude will come to 62. Another big news is Amazon is entering into healthcare sector in US, in a similar style where Reliance entered the Telecom sector. We need to see what impact it will create on the US healthcare sector.
On the domestic front, today is the big day before the budget and everyone will be looking forward to for the budget with lot of expectations. Meanwhile Q3 results also started showing some upward trend and I personally feel that the double digit growth for PAT is something which we will surely achieve in this quarter. This prediction am making as I stand exactly at the mid point of Q3 results. All the Q3 results yesterday were fairly satisfactory and some very crucial Q3 results are slated for today. Most important is ICICI bank which will come at mid day today and has the potential to change the direction of bank Nifty.

Following are the other Q3 results expected today.

1. Archies
2. Cigniti Technologies
3. Dabur
4. Escorts
5. Hindustan copper
6. ICICI bank
7. IDBI
8. J&K bank
9. JK lakshmi cement
10. Karur vysya bank
11. L&T
12. NTPC
13. PVR Cinema
14. Shoppers stop
15. Vedanta

Derivatives Action

On the derivatives front, yesterday’s fall has made lot of options traders to go cautious on the market. The action now has shifted to call shorting and 12000 call which was at 7 rupees was heavily shorted and 7.2 lakh contracts created there. The traders were expecting to eat the premium as they dont expect Nifty to reach 12000 in this series. There was some action at 11500 call also where close to 5 lakh contracts got created. There were more call writers there as that was trading at 50 rupees premium and they wanted to eat that premium as they believed expiry will happen below 11550 levels. That reduced the demands for puts and 10800 put saw lot of unwinding. 2 lakh contracts were unwound at 10800 put as the fall means the downside is getting opened. The result is put call ratio dropped from 1.44 at the beginning of the day to 1.37 at the end of the day.

What is the Nifty call for the day?

Global factors are pushing the markets down and Nifty might open gap down at 11020 levels and a support comes at 10980 and 10950 levels. 10950 is a very strong support. Don’t forget that tomorrow is the budget day and its always wise to go to budget day with long positions. So there will be some buying happening in the Nifty from afternoon and any drop to 10980 or below is an opportunity to buy and even if it does not drop to that level also take a long position wherever Nifty is. This you should do before 1.30 pm and wait for a budget rally to 11200 level as target for tomorrow.

What is the bank Nifty call for the day?

Bank nifty like Nifty will also open a bit down maybe around 27180-27200 levels, and after that there will be some pressure where it might test 27100 levels or go below that. It is wise to go short only in the first half of the day with whatever target in the range. You need to exit by the time ICICI bank comes up with its Q3. As told for Nifty go with a long position in bank nifty also around 27100-27150 levels or at 27200 levels with 27500 as the target for the budget day. It will surely be achieved.