Markets and News
Week 4 of the longest series running for 35 days comes to an end today and things are kind of settling down. The major fundamental is the Trump’s decision to cutoff the proposed meet with North Korea at Singapore. Not going well for Asia and Dow Jones reacted negatively to it. Second is the Fed’s decision to allow the inflation to go higher and accordingly rise the interest rates. So, in all probability, there would be a rate hike in Fed’s June policy. This fundamental has pushed the dollar index again and it started going to 94 again and this will have some impact on Rupee today.
Domestic Cues
On the domestic front, its not going great today as the Petrol prices went up for the 12th day running, making up for the losses for 1 month, when Govt did not change the prices due to Karnataka elections. The Brent Crude however has cooled off a bit and has settled at 78.6 dollars. The Q4 results however continue to come average with some companies like cummins which declared a bad set of numbers while Pidilite was good. Today also the action will continue with Bank of Baroda, the big PSU coming with their Q4 today.
Following are the Q4 results expected today.
1. Bank of Baroda
2. BEML
3. Good year tyres
4. Hindustan Motors
5. IDBI
6. Indian Hotels
7. Jagran publications
8. Jindal SAW
9. Sun Pharma
10. Tech Mahindra
Derivatives Action
On the derivatives front, the relentless selling by FII’s is continuing in the Futures market and the overall long positions has now dropped to 45% which is the lowest in this series. The premium has totally eroded and now Nifty futures are trading at a discount of 9 points. This is a bearish sign and unless there is a short covering the market won’t go down on this trend. The options market is also seeing a different trend today with a lot of put buying taking the Nifty put call ratio to 1.29 from 1.18 level. 10500 put add 9.3 lakh contracts and 10400 put added 5.9 lakh contracts while on the call side 10700 call added 6.1 lakh contracts.
What is Nifty and bank Nifty call for the day?
Asia is not positive and that means we will open flat around the 10520-10530 mark and what happens from there needs to be seen. 10550 will present a strong resistance and on the downside 10500 might offer support. Today is the weekend and positions will be closed in the afternoon leading to volatility. I would suggest you to wait and watch today. Avoid taking any positions and come back fresh on Monday morning to trade in options market in the expiry week.
Bank Nifty is more positive than Nifty and so any drop to 25900-25950 zone should be taken as a chance to enter into a long position to be taken to next week with 26150-26200 as a target. This is for weekly trade not intraday.