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Nifty Outlook

Markets plunged sharply lower and lost over 2.6%, pressurised by weak global cues. The meltdown in the US markets, on the fear of aggressive rate hikes, rattled investors and triggered a weak start. The situation worsened further due to heavy selling in the index majors across sectors wherein IT and metal majors were among the top losers. Consequently, the Nifty ended near day’s low to close at 15,800 levels. The broader indices too traded in sync with the benchmark and lost in the range of 2.5-3%.

This fall indicates that bears are in control as the Nifty has completely reversed the recent gains and again reached closer to the March low. And, indications from the global indices, especially US markets are pointing toward a further decline. Traders should align their positions accordingly.

News

Bosch Q4FY22 revenue was up 2.9% at Rs 3,311 cr. Its net profit was down 27.3% YoY at Rs 350.6cr

Alkyl Amines Chemicals Q4FY22 revenue was up 11.4% YoY at Rs 425.6cr. It has reported 50% fall in its net profit to Rs 46.4 cr.

Dr Reddy Laboratories Q4FY22 revenue grew by 15% YoY to Rs 5,437cr. Its net profit declined by 76% YoY to Rs 88cr.

Derivative Ideas

The Markets witnessed huge selling pressure on the expiry day amid weak global cues and NIFTY shed 2.65% and closed at 15809.4 on 19th May. The down move happened with significant addition of Fresh Shorts in its FUTS. With 16000 as Resistance, we anticipate more pain ahead and NIFTY is likely to test its support at 15650. We thus suggest initiating Shorts with the PE option.

Strategy:- BUY NIFTY 26 MAY 15300 PE @ 50-60, SLOSS AT 10, TRGT 120.

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