Markets traded volatile on the weekly expiry day and lost over half a percent, tracking weakness in the global markets. After the initial downtick, the Nifty index drifted gradually lower however rebound in the last hour pared some losses. Eventually, it settled at 18,028; down by 0.7%. Most of the sectoral indices ended lower wherein profit taking in auto, banking and energy majors was weighing on sentiment. The broader indices underperformed the benchmark and lost over a percent each.
It is a new normal now that our markets start to consolidate when the global indices face pressure. Going ahead, it would be critical for Nifty to hold 17,800 to maintain a positive tone. Meanwhile, participants should utilise this phase to add stocks on dips while focusing majorly on index majors and select midcap counters. Among the sectors, we reiterate our preference for banking and auto and suggest remaining selective in others.
* Eicher Motors reported its Q2FY23 results with its revenue at Rs 3,519 Cr up by 56.4% YoY, its EBITDA came in at Rs 822 Cr up by 74.9% YoY and reported a net profit of Rs 657 Cr up by 76.0% YoY.
* Oil India reported its Q2FY23 results with its revenue at Rs 10,124 Cr up by 39.6% YoY, its EBITDA came in at Rs 2,703 Cr up by 16.1% YoY and reported a net profit of Rs 2,116 Cr up by 45.5% YoY.
* Berger Paint reported its Q2FY23 results with its revenue at Rs 2,671 Cr up by 20.0% YoY, its EBITDA came in at Rs 364 Cr up by 2.8% YoY and reported a net profit of Rs 220 Cr up vs 219 a year ago.
Nifty shed 0.71% and closed at 18028.20 on 10th Nov. The index after opening negative witnessed further pressure. The move happened on the back of addition of Fresh Shorts in its FUTS and significant Call selling at 18100 and beyond strikes. We expect NIFTY to trade with negative bias in the short term in the range of 17800-18250 thus suggesting selling CE as per the given levels
Strategy:- SELL NIFTY 17 NOV 18400 CE @ 33-35, STOP LOSS 50, TARGET 5.
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