IGI Logo

Nifty Outlook

Markets traded buoyant and gained over one and a half percent, tracking firm global cues. Participants took note of the less aggressive stance from the US Fed which resulted in a firm start, which further strengthened as the day progressed. Consequently, the Nifty index ended with strong gains of 16,929.6; up by 1.8%. Amongst the sectors, except Telecom, all the other indices ended in green wherein IT, Financials and Realty were the top gainers. The broader markets too participated in the move as both Midcap and Smallcap gained nearly a percent each.

After the US Fed meet, participants are now eyeing US GDP data for further cues and we’ll see the reaction in early trades. Besides, earnings announcements would continue to trigger stock-specific volatility. As Nifty has surpassed the critical hurdle at 16,800, we’re now eyeing 17,400. Participants should continue with a positive bias and use any intermediate pause/dip to add quality names.

News

M&M Financial Services reported its Q1FY23 numbers wherein NII was up 33.9% at Rs 1,554 cr against Rs 1,161 cr in the same quarter last year. Net profit at Rs 223 cr as against loss of Rs 1,529 cr (YoY).

Hindustan Aeronautics (HAL) has signed a contract worth over USD 100 million with Honeywell for HTT-40 Engines. The company will supply and manufacture 88 TPE331- 12B engines/kits along with maintenance and support services to power the Hindustan Trainer Aircraft (HTT-40).

Dr Lal Path Labs reported its numbers wherein it has reported 56.4% fall in Q1FY23 net profit at Rs 58.2 cr versus Rs 133.7 cr and revenue was down 17.1% at Rs 502.7 cr versus Rs 606.6 cr, YoY.

Derivative Ideas

NIFTY gained 1.73% and closed at 16929.6 on 28th July. The index after opening with a gap traded with positive bias throughout the day. The move happened on the back of short covering and fresh longs added in its FUTS. 16600-16800 should be the base for NIFTY for 4th Aug weekly expiry. We expect NIFTY to trade positive and test 17200-17400 in the short term and thus suggest selling PE as per the given levels.

Strategy:- SELL NIFTY 4 AUG 16500 PE @48-50, STOP LOSS 70, TARGET 10.

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