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Nifty Outlook

Markets kept the participants on the edge on the monthly derivatives expiry day but finally ended flat. After the gap-up start, the Nifty gradually inched lower as the session progressed and finally settled around the day’s low to close at 16,818.10 levels. While most sectoral indices traded in sync with benchmark and ended flat to marginally lower, continuous buying in defensive viz. pharma and FMCG majors capped the damage.

Markets have been making attempts for a rebound however weak global cues combined with continuous selling from foreign investors are weighing on sentiment. We feel the overall tone would remain bearish until the Nifty reclaims 17,200. On the downside, a decisive break of 16,800 could further fuel the decline. Participants should align their positions accordingly and maintain positions on both sides.

News

* TCS announced a partnership with CareScout Partners to create a marketplace that Makes Long Term Care More Accessible to Americans. TCS is helping CareScout, a Genworth Financial company, to help American families access quality long-term care in a timely and effortless manner by connecting them with the right care facilities through a marketplace.

* United Breweries launched a new Heineken Sliver in India, a smooth and refreshing beer that provides Indian consumers with a premium beverage that is truly designed for everyday social occasions.

* Lupin announced that it has received approval from the USFDA for its ANDA, Mirabegron Extended-Release Tablets, 25 mg and 50 mg, to market a generic equivalent of Myrbetriq® Extended-Release Tablets, 25 mg and 50 mg, of Astellas Pharma Global Development, Inc. Mirabegron Extended-Release Tablets, 25 mg and 50 mg, (RLD Myrbetriq®) had estimated annual sales of USD 2,403 Mn in the U.S.

Derivative Ideas

NIFTY shed 0.24% and closed at 16818.1 on 29th Sep. The index traded volatile and pared all its opening gains. Every rise is getting sold into, the down move consists of addition of Fresh shorts in its FUTS and substantial Call selling at 17000 levels. We expect Nifty to trade with negative bias in the short term thus suggest selling CE as per the given levels.

Strategy:- SELL NIFTY 6 OCT 17300 CE @ 43-45, STOP LOSS 65, TARGET 5.

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