Markets and News!

Its Tuesday today and things are looking bit confusing on the 2nd day of the week too. US markets closed almost flat but Asia is full of green and one big negative is the Brent crude crossing 68 and now at 68.20 dollars and this could be something that markets will watch too. There was a lot of buying from FIIs in delivery based stock also and that means something is just changing. But if we look things deeper things are not as brighter as they look. Bank Nifty is sulking and Moody’s yesterday commented about affordable housing loans quality dropping. That could be a bit of worry.
On the other news Q3 results season is starting today with South Indian bank declaring its Q3 results today. But it will officially start on 11th with IndusInd bank and TCS coming up with their Q3 and on Friday, 12th we have Infosys and Karnataka bank declaring their Q3. So we will have some triggers later in the week but not today. Today it will be technicals that will drive the market. Another big news is RBI has announced its new 10 year bond for 2018. It is going to have a coupon rate of 7.17%. So far 281 bidders have gone for this for an amount of 47,000 Crore. Its a good beginning and we need to see how it performs once it hits the market.

Futures and Options!

On the derivatives front, there was lot of action on call side now with call unwinding happening at 10600 and 10700 levels. 3.5 lakh short positions taken earlier were unwound at 10600 and the premium went up 20 rupees to 110 rupees and there was a 12 rupee premium surge at 10700 call too. Yesterday these two calls generated maximum volume but some call shorting has began at 10800 level and 10900 level. Both of them have a premium of 27 rupees and 11 rupees. These are the safest premiums as of now if Nifty encounters resistance at 10700 levels. That made Nifty put call ratio to drop to 1.28 levels.

What is the Nifty strategy for today?

Today Nifty will open flat to positive around 10630 level and that could be another life time high. Will Nifty has legs to touch 10650? It might just attempt to touch that. But today will be more of a flat day where Nifty will touch 10600 level also. Keep your long position as the target is 10700 and we are on our way. But for those who dont have a position or who exited yesterday after making profit, you will have a chance to re enter and that could be when Nifty touches 10600. Be long in this market as long as definite sign of collapse appears.