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Nifty Outlook

Markets showed resilience and gained over a percent amid mixed cues. After the initial uptick, the benchmark gradually inched higher as the session progressed and settled around the day’s high. Healthy buying in auto, FMCG, financials and realty stocks boosted sentiment. Among the benchmark indices, the Nifty index settled at 15989.80 levels; up by 1.13%. The broader indices also ended in the range of 0.5-2%

Global indications are still mixed so it’s too early to celebrate the recent rebound. We recommend continuing with a cautious approach and sticking with the themes which are offering comfort even during the downtick. Nifty has the potential to inch towards 16,200 however the upcoming earnings season would play a critical role in the sustainability of the rebound.

News

* Aurobindo Pharma is pleased to announce that its wholly owned subsidiary company, Eugia Pharma Specialities, has received a final approval from the USFDA to manufacture and market Triamcinolone Acetonide Injectable Suspension 200 mg/5 mL & 400 mg/10 mL.

* GAIL plans to invest in start-ups operating in focus areas including natural Gas, Petrochemicals, Energy, Project Management, Logistics, Electric Mobility, Bio Manure Marketing, Nano Materials, IoT and Data Mining, Environment, Health and Social, etc. It opened a fresh round for solicitation till July 31, 2022.

* JKumar Infraprojects has received Letter of Acceptance from BMC, for design, build and commissioning of priority sewer tunnel-Phase I from Don Bosco to New Malad IPS with segment lining method in Mumbai. The project cost is Rs 571.01 cr.

Derivative Ideas

NIFTY gained 1.13% and closed at 15989.8 on 6th July. The index after opening flat traded on a positive note throughout the day. The base shifted from 15800 to 15900 on the back of heavy PE writing and incremental Longs in its FUTS, NIFTY tested its hurdle at 16000. Holding 15900, we expect NIFTY to trade with positive bias from here on and expect NIFTY to test 16200 levels in the short term. We thus suggest selling PE as per the given levels.

Strategy:- SELL SELL NIFTY 14 JUL 15400 PE@55-60, STOP LOSS 80, TARGET 20

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