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Nifty Outlook

Markets made a tepid start and settled with a cut of over half a percent, tracking weak domestic cues. Mixed earnings and not so encouraging macroeconomic data dented sentiment and pushed the Nifty lower in the first half. Though it tried to recoup losses in the middle, selling pressure in the final hour capped the recovery. It finally closed at 17,014.25 levels. Mostly sectoral indices ended lower in line with the index wherein banking and realty were among the top losers.

Markets are somehow managing to hold the recent low amid excessive volatility but it could be a pause before a further slide. We feel the performance of the banking and financials would dictate the trend in the near future while others are showing a mixed trend.

News

* Tata Tele Business Services has partnered with Google Cloud to offer Google Workspace for Small and Medium Businesses (SMBs). TTBS will offer businesses a single, unified experience for workplace communication and collaboration for their hybrid workforce as they continue to scale and modernize their cloud infrastructure.

* SIAM released September 2022 Data. Passenger Car Sales up 122% at 1.42 lakh units against 0.64 lakh units and Utility vehicle sales up 73% at 1.51 lakh units versus 0.88 lakh units, YoY. Two-wheeler sales were up 13% at 17.4 lakh units against 15.4 lakh units and Motorcycle sales were up 17.1% at 11.1 lakh units versus 9.48 lakh units, YoY.

* Infosys announced its results with its revenue at Rs 36,538 Cr up by 23.4% YoY basis, the EBIT margin came in at 21.5%. Attrition rate for the quarter was 27.1%. The company also announced a buyback of Rs 9,300 Cr.

Derivative Ideas

NIFTY shed 0.64% and closed at 17014.35 on 13th Oct. The index traded with negative bias throughout the day. The move happened on the back of addition of fresh shorts in its FUTS and significant Call selling at 17000. We expect the index to consolidate further with weakness bias in near term in the range of 16900-17150 and thus suggest selling CE as per the given levels.

Strategy:- SELL NIFTY 20 OCT 17600 CE @ 28-30, STOP LOSS 50, TARGET 5.

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