Markets and News

Weekend is here and a week that saw NIFTY climbing all time new highs continuously is coming to an end. US markets seem to have taken a break and has ended in mild red. Asia is also trading mixed today. No major fundamentals worrying the World, crude inventories seem to be stabilizing and that has brought the crude prices below 69 dollars. Now crude is at 68.7 dollars and that will surely bring some cheer.

Domestic Cues

On the domestic front, further changes and adjustments were done for GST items with some movements happening from 28% to 18%. Q3 results are more or less coming in line but today will decide the future course of NIFTY as for as Q3 results are concerned. 6 out of 50 companies accounting for 30% of Market cap of Nifty will be reporting their Q3 results today. That makes today the most important day in the calendar of Q3 results.

Following are some of the companies declaring their Q3 results today

1. HCL Tech
2. HDFC bank
3. HDFC Life
4. ICICI pru life
5. IDFC bank
6. ITC
7. JM Financials
8. JP Associates
9. Jubilant Foodworks
10. Kotak Bank
11. NIIT Tech
12. PC Jewellers
13. Reliance Industries
14. Tata Elxsi
15. Wipro

Derivatives watch

On the derivatives front, there was a lot of action with traders going for shorting once NIFTY crossed 10880 and covered them when it fell to 10800 and made a huge profit. The heavy shorting seen in NIFTY between 10860-10880 levels was seen when the Nifty futures was trading in discount of almost 15 to 20 points. On the options front 10700 call continues to shed open interest with 13.9 lakh positions closed yesterday. That is a very high number where the traders are expecting a 10800 plus expiry. 10900 call saw the maximum open interest build up of 16.3 lakh contracts and 11000 call also saw 11.9 contracts built up. On the put side 10800 put saw maximum open interest of 20.8 lakh contracts. 10800 put has 50 rupees premium so the floor for this series which is expiring on next Thursday is 10750. On the higher side 10920 will be the resistance. All this call action brought down the Nifty put call ratio to 1.47 levels.

What is the NIFTY call for the day?

Expect a flat opening to NIFTY around 10820 levels and a lot depends on how the Q3 results come. 10850 and 10880 will offer resistance on the upside and if it is broken then we might see another all time high. Else NIFTY will spend its day between 10780-10880 levels and today afternoon it will be very crucial for the market. There is a strong likelihood of NIFTY testing 10750 if results go the wrong way. Reliance will declare its Q3 today after the market close and it is always good to go to Monday with a long position in Nifty when Reliance is declaring its results. Any dip today to 10820 or below should be taken as an opportunity to re enter with 10900-10920 as a target for this series. That might give you some profits going into next week.