IGI Logo

Nifty Outlook

Markets shed over half a percent in a volatile trading session, taking a breather after the recent surge. Mixed cues from the earnings front and tepid global markets kept the tone negative in the first half however rebound in the select heavyweights pared some losses. Finally, the Nifty index ended lower by 0.5% at 16,631 levels. Most sectoral indices ended lower in line with the benchmark wherein auto, oil & gas and telecom were the top losers.

Indications are in the favour of consolidation in the index and we expect volatility to remain high, thanks to the prevailing earnings season and upcoming US Fed meeting outcome. Meanwhile, we maintain our positive view and suggest continuing with the “buy on dips” approach.

News

* Bharat Electronics has signed a Rs 250 cr contract with the Ministry of Defence. It will supply nine integrated ASW complex (IAC) MOD 'C' systems. IAC MOD 'C' is an integrated anti-submarine warfare (ASW) system for all surface ships of the Indian Navy

* Vodafone Idea board has approved issuance of 42.76 cr warrants (each convertible into one equity share), to promoter Euro Pacific Securities, at an issue price of Rs 10.2 per warrant. The fund raising through this warrants issuance is Rs. 436.2 cr on a preferential basis.

* Solar Industries reported revenue growth of 95.8% YoY to Rs. 1,616 cr in Q1FY23. Net profit jumped 74.6 % at Rs 170.2 cr against Rs 97.5 cr (YoY).

.

Derivative Ideas

NIFTY shed 0.53% and closed at 16631 on 25th July. The index after seeing a non stop rally of 800 points is now undergoing some correction i.e both price and time wise. The index traded with corrective bias throughout the day on the back of heavy CE writing at higher levels. We expect NIFTY to spend some time in consolidation and trade in the range of 16400-16800 in the short term. We thus suggest selling CE as per the given levels.

Strategy:- SELL NIFTY 4 AUG 17200 CE@33-35, STOP LOSS 50, TARGET 10

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer