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Nifty Outlook

Markets extended rebound and gained nearly half a percent on the weekly expiry day. Firm global cues triggered a gap-up start in Nifty however profit taking in the latter half trimmed the gains. It finally settled at 17,325 levels; up by 0.3%. Amid all, sectoral packs like metal, IT and realty posted decent gains while defensive viz. FMCG and pharma were on the back foot. The broader indices outperformed the benchmark and gained over a percent each.

Markets are currently rejoicing the recovery in global markets but the task is to hold the gains amid mixed cues. On the index front, we expect Nifty to hold 17,100 and gradually inch toward the 17,580 zone. Amid all, participants should not go overboard and maintain focus on sector/stock selection.

News

* Bharti Airtel, launched its Airtel 5G Plus and is now live in 8 cities. All of urban India to be covered in 2023 making this one of the fastest roll-outs.

* L&T Construction Wins Significant Orders for its from a leading automobile major to construct a state-of-the-art manufacturing facility in Haryana, India. The deal is estimated to be worth between 1,000-2,500 Cr.

* Glenmark became the first to launch Thiazolidinedione Lobeglitazone in India for the treatment of type 2 diabetes in adults. Marketed under the brand name LOBG; it contains Lobeglitazone (0.5 mg) and to be taken once daily under prescription to improve glycemic control in adult diabetic patients.

Derivative Ideas

NIFTY gained 0.33% and closed at 17331.80 on 6th Oct. The index after opening with a gap resisted at its immediate hurdle and pared most of its gains. The down move attracted fresh shorts in its FUTS. Call selling was also seen at Nifty 17400 and beyond strikes. We expect Nifty to trade sluggish till the time it does not cross above 17500 and thus suggest selling CE as per the given levels.

Strategy:- SELL NIFTY 13 OCT 17700 CE @ 38-40, STOP LOSS 65, TARGET 5.

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