Monday morning and the start of the 1st week of this long series that exceeds 30 days!

What is going to drive today’s markets is the global markets that are on fire especially US. Amazon went up by 13.5% adding 60 billion market cap in a single day, Microsoft went up 6.5% and US GDP for Q3 grew at 3% vs expected 2.5%.
All this has set the stage for big global growth. Indian companies are also giving good Q3 numbers putting to rest the temporary fear created by Yes bank. ICICI bank came up with slippages of 4,674 Cr which is the lowest in 8 quarters.Q1 had close to 5000 Cr and Q4 for previous year had a 11,200 Cr slippages. That should work very well for banks that have been going through a rough patch. Today, ICICI and SBI should lead the rally again. Tata steel is expected to come with its Q2 and that should also give a leg up to the NIFTY. The only negative is crude oil crossing 60 dollars and that is the indicative of high growth. ONGC might benefit. OMCs will be negative today.

On the F&O front!

10,300 put was very active and quite a bit of shorting happened there. The premium is at 75 rupees meaning 10220 will be floor for this series and building up to be that way. 10,500 call also had a maximum build up with people buying and selling it. Its also at 75 rupees and buyers want to double it and sellers want to eat it. One very interesting data point is shorting of call happening at 10,700 and nearly 70,000 contracts were shorted there. That means this series can go upto 10,700!! That’s a big news coming at the start of the series. The bullishness is indicated by the fact that 3 puts are shorted for every long put and 1 call is bought for every 4 calls sold and Put call ratio is at 1.38 which is appearing to be very healthy!

What happens to NIFTY today?

NIFTY will open at 10,350 levels and from there the journey towards 10,400 will resume. There is a barrier at 10,380 and will NIFTY cross that or need needs to be seen. The good Q2 results should push it there. Unless there is a fundamental affecting it, NIFTY will close positive today with 10,320 acting as a support. I suggest you to buy around 10,330-10350 range and keep a target of 10,500 in the near term. The stocks to look for are ICICI, SBI, ONGC and Tata steel. These are the ones which are going to be stars for this series.

Q2 results today

1. Alembic
2. BEL
3. Central bank
4. Century plywood
5. HDFC
6. IDFC
7. Infratel
8. Lupin
9. Sintex
10. Tata steel
11. Wockhardt