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Nifty Outlook

Markets witnessed a decent surge on Friday and gained nearly a percent. Strong recovery in the global indices combined with upbeat earnings triggered a gap-up start in Nifty however profit taking in the latter half trimmed the gains. It finally settled at 17,185.7 levels; up by 1.01%. Among the sectors, banking, financials and IT contributed the maximum while realty, energy and auto were on the back foot.

Markets have been consolidating for the last two weeks amid mixed cues and we expect this to end soon. Meanwhile, participants should maintain their focus on sectors and stocks which are showing resilience despite the prevailing uncertainty and utilise this phase to accumulate them.

News

* Federal Bank announced its results with its highest ever operating profit, net interest income and net profit at 1,212 Cr, 1,762 Cr and 704 Cr respectively.

* Shree Cements announced its results with its revenue at 4,038 Cr up by 19.7% YoY, EBITDA margin came in at 13.4% and PAT margin of 4.5%.

* Bajaj Auto announced its results with its revenue at 10,203 Cr up by 16.4% YoY, EBITDA margin came in at 17.2% amd PAT margin came in at 15.0%.

Derivative Ideas

NIFTY gained 1.01% and closed at 17185.70 on 13th Oct. The index traded with negative bias after opening with a gap. However it managed to hold its gains partially and short covering is seen in its FUTS. We expect Nifty to consolidate further in the range of 17000-17300 in the short term and thus suggest selling PE as per the given levels.

Strategy:- SELL NIFTY 20 OCT 16700 PE @ 28-30, STOP LOSS 50, TARGET 5.

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