Markets and News

Just when things are looking set, Mother market does the unthinkable!
Dow Jones does a Down Jones and its down over 1000 points on a single day triggering the volatility back into the market again. Europe is all red and the result is Asia is in the Ocean of red. Dow Jones finishes its 10% correction and it needs to be seen whether its a correction or are we heading lower, probably to a 20% correction leading to a bear market. Already 60 out of 500 stocks which is 12% of S&P 500 stocks have corrected more than 20% and have gone into the bear market. On a serious note, we are in the first real danger of moving into a bear market. But still that is another 10% away but that can happen quickly, if the trend continues.
On domestic front, things are looking bright with many companies came up with good Q3 results. Slowly things are looking up but suddenly the crisis has come back again. The brent crude is also below 65 and got into 64 zone. Bond yields are slowly stabilizing. Today is going to be another eventful day with many good companies like Bata, SBI and marico coming up with Q3 results. If SBI delivers then we can be assured that atleast the banking woes have temporarily come to an end.

Here are the Q3 results expected for today.

1. Aditya Birla Capital
2. Bank of Baroda
3. Bata India
5. Central Bank
6. Gillette
7. India cements
8. Mahindra & Mahindra
9. Marico Industries
10. MOIL
12. RCF
13. State Bank of India
14. Sobha developers
15. Sun TV
16. Suzlon energy
17. Syndicate bank
18. Tata Steel
19. UCO bank

Derivatives Action

On the derivatives front, all the cues you have yesterday have become useless. There was handsome buying seen in the Nifty futures and many people have taken a long position as the market was moving up. All of them would trigger stop losses today. On the options front there was lot of unwinding in calls as the market moved up. 10600 call saw 4.6 lakh unwinding, 10750 call saw 2.8 lakh and 10800 call saw 2.2 lakh shares unwinding. Even 11000 call also saw 3.4 lakh positions unwinding as traders were expecting Nifty to go up. Today it will be opposite and we will see put unwinding happening. The put call ratio rose to 1.09 from 1.01 because of this unwinding of calls.

What is the Nifty and Bank Nifty strategy for the day?

In a volatile market like this, you have to burn your fingers and that is what is going to happen. The long position taken at 10480 zone has almost met its target but today it will trigger stop loss and you have to exit. In days like these its better to switch to options trading. Nifty will open around 10350 mark and then 10300 is the only support left. What needs to be seen is there is any recovery. If Nifty doesnt break 10300 then there is some hope. I will tweet what positions to take as the day progresses. On the Bank Nifty front, it is likely to open around 25000 level and if that breaks then 24800 should present some support. SBI result, if it comes at 12 noon as usual will provide some support to Bank Nifty if it is positive. But Europe opening will have some impact so wait for my call before taking any positions.