IGI Logo

Nifty Outlook

Markets maintained consolidation bias on the weekly expiry day and ended marginally higher. Weak global cues triggered a gap-down start in the Nifty; however, buying in IT, energy and banking majors pared losses and pushed the index in the green. Consequently, Nifty closed near the day’s high to end at 17,563.95 levels. Meanwhile, the broader indices underperformed and ended marginally lower.

Markets are digesting the recent gains however the tone is still positive, thanks to noticeable buying interest on every dip. However, we’re seeing limited participation across sectors so the focus should remain on stock selection. Needless to say, further recovery in the global indices, especially the US, would strengthen the trend and help the Nifty to inch toward the 17,800 level.

News

* Bajaj Finance Q2FY23, net interest income increased by 31% YoY to Rs 7,001cr. New loans grew by 7% YoY to 67.6 lakh. Its consolidated AUM rose 31% to Rs 2,18,366cr QoQ. It PAT grew by 88% YoY to Rs 2,781cr.

* Asian Paints posted revenue of Rs 8,457.6cr with a growth of 19.2% YoY for Q2FY23. Its PAT came in at Rs 803.8cr, up by 32.8% YoY.

* Colgate’s Q2FY23, revenue from operations came in at Rs 1,387.5cr with growth of 2.6%. Its profit stood at Rs 278 cr higher by 3.3% YoY.

Derivative Ideas

NIFTY gained 0.30% and closed at 17563.95 on 20th Oct. The index traded with positive bias throughout the day of the back of long rollovers in its FUTS and significant put selling at 17500 strike. We expect Nifty to trade with positive bias in the range of 17450-17700 in the short term thus suggesting selling PE as per the given levels.

Strategy:- SELL NIFTY 27 OCT 17100 PE @ 38-40, STOP LOSS 60, TARGET 5.

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