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Nifty Outlook

After a breather, bears took tight control over markets as it ended with sharp losses. The benchmark started on a muted note tracking weak Asian markets and further negative bias continued throughout the day as selling pressure widened in metals, media and energy. Consequently, the Nifty ended lower by 1.44% at 15,413.3 levels. The broader markets, midcap and small-cap ended in-line with the benchmark. All the sectoral indices ended in the red.

On Thursday i.e. 23th June, markets will first react to the Fed chairman speech scheduled tonight. Besides, progress on monsoon, crude price and currency movement will be key monitorable. We reiterate our cautious stance on the markets and expect volatility to remain high in the near term. Meanwhile, traders are advised to keep a hedge position while investors should focus on stock selection.

News

* GAIL (India) plans to enter into distributed Liquefied Natural Gas (LNG) production with the vision to cater the demand from off-grid locations and transport sector.

* Greenlam Industries, establishes its leadership position in the laminate industry by acquiring the laminate manufacturing facility of Gujarat based Bloom Dekor and deal is worth Rs 36cr.

* Mahindra Insurance Brokers (MIBL), a subsidiary of M&M Financial Services announced its partnership with BigHaat, India’s leading Agri Digital Platform. This partnership will offer financial solutions to the informal Agri segment of India’s workforce.

Derivative Ideas

NIFTY shed 1.44% and closed at 15413.3 on 22nd June. The index witnessed a decline after finding resistance at 15650-15700 on the back of heavy writing at 15700 weekly CE and beyond strikes. The monthly 15500 CE saw an addition of 24000 odd contracts, making 15650-15700 as a resistance zone. We thus suggest selling monthly 15800 CE as per the given levels.

Strategy:- SELL NIFTY 30 JUN 15800 CE @ 55-60, STOPLOSS 90, TARGET 10.

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