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Nifty Outlook

Markets remained volatile but finally ended with modest gains, taking a breather after the recent dip. After the initial uptick, the benchmark hovered in a narrow range for most of the session however buying interest in select index majors in the last hour aided positive close in the index. On the benchmark front, the Nifty settled at 16,049.20 levels; up by 0.7%. Amongst the sectors, most sectors traded in tandem wherein auto, consumer durables and capital goods were the top gainers. The broader indices too gained in the range of 0.6%- 0.9%.

Markets will first react to the banking major, HDFC Bank, numbers in early trade on Monday. Besides, the performance of the global indices especially the US markets and movement in crude will remain on participants’ radar. Amid all, we recommend continuing with a positive yet cautious approach till Nifty holds 15,900 and focusing more on stock selection.

News

* Cipla's subsidiary Cipla Health has signed definitive agreements for acquisition of Endura Mass, a nutritional supplement brand in the category of weight gain from Medinnbelle Herbalcare Private Limited.

* Yes Bank has chosen JC Flowers Asset Reconstruction Co. as its joint venture partner to offload Rs 49,000 cr of bad loans.

* Federal Bank reported its Q1FY23 numbers wherein NII was up 13% YoY to Rs. 1,605 cr. Its net profit jumped 63.5% YoY to Rs. 600 cr.

Derivative Ideas

NIFTY gained 0.69% and closed at 16049.2 on 15th July. The index after trading sluggish in the first half and finding support at 15920 showed a good up move in the second half on the back of addition of Longs in its FUTS. 16000 PE added 56000 odd contracts making 15900-16000 the level to watch out for support for this weekly expiry. We expect NIFTY to hold the support and trading in a range of 15900-16250 in the short term. We thus suggest selling PE as per the given levels.

Strategy:- SELL NIFTY 21 JUL 15600 PE@28-30, STOP LOSS 45, TARGET 5.

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