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Nifty Outlook

Markets traded lackluster and ended almost on a flat note, taking a breather after the recent surge. Initially, the benchmark opened lower, tracking mixed global sentiment and a sharp cut in the IT majors post TCS numbers however outperformance of the banking pack capped the downside. And, buying in auto, metal and oil&gas space further trimmed the losses as the day progressed. Eventually, the Nifty settled almost unchanged at 16,216 levels. Meanwhile, buoyancy on the broader front kept the traders busy.

Amid the mixed global sentiment, the focus should be on the upcoming macroeconomic data and earnings for cues. We reiterate our positive view and expect Nifty to test 16,500 soon. Participants should align their positions accordingly and continue with the “buy on dips” approach till the Nifty holds 15,900 levels.

News

* Power Grid Corporation of India is declared as the successful bidder under Tariff based competitive bidding to establish inter-state transmission system for "transmission system for evacuation of power from Neemuch SEZ" on build, own operate and transfer (BOOT) basis.

* Thomas Cook (India) and its Group Company, SOTC Travel, have launched Vistara Getaways – International, in an extension of their exclusive partnership with Vistara, India’s finest full-service carrier (a joint venture of the Tata Group and Singapore Airlines).

* Pennar Group, a leading value-added engineering products and solutions company, has bagged orders worth Rs. 688 cr across its various business verticals.

Derivative Ideas

NIFTY shed 0.03% and closed at 16216 on 11th July. The index after opening negative traded with uptick on the back of PE writing and addition of longs in its FUTS. 16100 PE added 46k odd contracts making 16000-16100 level to watch out for support. We expect NIFTY to trade in the range of 16000-16500 in the short term and thus suggest selling PE as per the given levels.

Strategy:- SELL NIFTY 14 JUL 15800 PE@28-30, STOP LOSS 45, TARGET 5.

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