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Nifty Outlook

Markets remained volatile on weekly expiry day and shed half a percent, pressurised by feeble global cues. After the gap-down opening, the Nifty oscillated in a range and settled around the middle of the band, to close at 17,629.80 levels. On the sectoral front, pressure in banking and financials was weighing on the sentiment while buying in auto and FMCG majors capped the damage. Amid all, the broader indices outperformed and gained nearly 0.5% each.

The recent movement in the index shows indecisiveness amid the global uncertainty and it may take some time to subside. Meanwhile, we recommend focusing more on overnight risk management and limiting leveraged positions.

News

* TVS Institute for Quality and Leadership, the Corporate University of TVS Motor Company has received ‘Performance level’ certification by the Global Council of Corporate Universities after qualifying the requirements during an on-site audit.

* Lupin announced that it has received approval from the USFDA for its Abbreviated New Drug Application (ANDA), Diclofenac Sodium Topical Solution USP, 2% w/w to market a generic equivalent of Pennsaid® Topical Solution, 2% w/w of Horizon Pharma Ireland DAC. The product will be manufactured at Lupin’s facility in Pithampur, India.

* Kirloskar Oil Engines' announced that its board members have appointed Anurag Bhagania as Chief Financial Officer of the company with effect from September 22. In addition, the company acquired a balance of 24% stake in La-Gajjar Machineries. It had acquired 76% stake in LGM in 2017 with an agreement that the balance holding will be acquired by KOEL over a 5 years period

Derivative Ideas

NIFTY shed 0.5% and closed at 17629.80 on 22nd Sep. The index witnessed selling pressure on the weekly expiry day. The down move happened on the back of addition of Fresh Shorts in its FUTS and significant call writing at 17700 and beyond strikes. We expect the Nifty to find resistance at 17800 and trade with negative bias in the short term thus suggesting selling CE as per the given levels.

Strategy:- SELL NIFTY 29 SEP 18100 CE @38-40, STOP LOSS 60, TARGET 5

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