IGI Logo

Nifty Outlook

Markets started the week on a feeble note and lost over half a percent, in continuation of the prevailing corrective phase. Weak global cues triggered a gap down start, followed by volatile swings till the end. Finally, the Nifty ended at 16,310 levels, down by 0.6%. Meanwhile, buying in select sectors such as IT, pharma and financials supported the benchmark to cap the downside while media, energy and PSU banks remained under pressure. The broader indices, midcap and smallcap, underperformed the benchmark and ended lower in the range of 1.7-2%.

We’re not seeing any respite in the global markets, especially the US, and we’re largely reflecting the same trend at our end too. Besides, mixed Q4 earnings are further adding to the negativity. We reiterate our view to focus on shorting opportunities on the rise until we see some sign of reversal. On the index front, support is intact at 16,000 in Nifty and the 16,550-16,650 zone would act as immediate hurdle.

BASF Q4FY22 revenue was up 20.8% YoY at Rs 3,389.5cr. Its net profit came in at Rs 149.8cr as against Rs 55.8cr YoY.

UPL Q4FY22 revenue was up 24% YoY at Rs 15,861cr. The company has reported 29.7% YoY jump in its net profit to Rs 1,379cr. It reported one-time loss of Rs 168cr versus loss of Rs 80cr YoY.

Suven Pharmaceuticals Q4FY22 revenue was up 40.4% YoY at Rs 363.8 cr. It has posted 10.3% YoY jump in its consolidated net profit to Rs 91.6cr.

SBIN is gradually drifting lower in line with the other banking counters and currently hovering around the support zone of long term moving average(200 EMA). The chart pattern is pointing toward the possibility of a gradual decline ahead. We thus suggest initiating fresh shorts through the Put option.

Derivative Ideas

MARICO shed 2.82% and closed at 489.45 on 9th May. The stock has been witnessing pressure after finding the resistance at 540 levels. This down move is supported by a noticeable rise in volumes with Fresh Shorts being added in its FUTS. However we expect MARICO to slide further only to find its support at 470 levels. We thus suggest initiating Shorts with the PE option as per the given levels.

BUY MARICO 480 PE @ 6-7, SLOSS AT 2, TRGT 15

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer