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Nifty Outlook

Markets extended gains for the third consecutive session, tracking favorable cues. Firm global cues combined with news of the government cutting back windfall tax led to a gap-up start. The tone remained firm in the first half, thanks to the continued rebound in IT, metal and energy pack however profit taking in the latter half trimmed gains. Finally, the Nifty index settled at 16,520; up by 1.1%. Meanwhile, the broader indices underperformed and closed flat to marginally higher

We may see some consolidation in the index after the recent surge however the bias would remain on the positive side till the Nifty upholds 16,250 levels. Most sectors are now contributing to the move on a rotational basis so the focus should be on stock selection. Needless to say, global cues and earnings would continue to trigger volatile swings in between.

News

Maruti Suzuki India unveiled their latest hybrid new model of Grand Vitara as it looks to expand presence in the fast growing mid-sized SUV segment.

Century Plyboards Q1FY23 consolidated revenue jumped 94.3% YoY at Rs 889cr. Its net profit came in at Rs 92.3cr as against Rs 31.4cr YoY.

Syngene International’s Q1FY23 consolidated revenue was up 8.4% YoY at Rs 644.5 cr. Its net profit went down 4.4% YoY at Rs 73.9cr.

Derivative Ideas

NIFTY gained 1.1% and closed at 16520.85 on 20th July. The index after opening with a gap managed to hold gains and traded in a range. The move happened on the back of Short Covering in its FUTS and heavy PE writing. 16500 PE added 137000 odd contracts making 16400-16500 the level to watch out for support for this weekly expiry. We expect NIFTY to hold the support and trade positive in the range of 16250-16700 in the short term. We thus suggest selling PE as per the given levels.

Strategy:- SELL NIFTY 28 JUL 16000 PE@38-40, STOP LOSS 60, TARGET 10.

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