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Nifty Outlook

Markets witnessed a roller-coaster ride on the weekly expiry day but finally ended with gains of nearly one percent. The trend across global markets was mixed after the Fed chairman suggested an increase in interest rates in the coming time to fight inflation. Back home, the benchmark started marginally in green and oscillated in a broader range till the end. Amid all, healthy buying in auto, IT, realty and pharma counters kept the participants busy. Finally, the Nifty ended higher by 1% to close at 15,560 levels. The broader markets too ended in the green in the range of 1.1%-1.3%.

Markets are largely dancing to the global tunes in the absence of any major domestic event and we expect the same trend to continue. We reiterate our cautious view and suggest focusing more on stock selection and risk management. Among the sectors, auto, FMCG and select IT looks upbeat for further up move while metals, energy and PSU banking may continue to trade lackluster. Traders should align their positions accordingly.

News

* Infosys announced that it has won two HFS OneOfficeTM Awards in the ‘Sustainability’ and ‘Innovation Ecosystem’ categories. The recognition by HFS Research, a leading global analyst firm, attests to Infosys’ overall environmental, social, and governance (ESG) leadership across both its own internal and ecosystem sustainability along with the ability to meet clients’ complex needs through Infosys' Fintech Ecosystem.

* Happiest Minds Technologies announced being positioned in the NelsonHall Vendor Evaluation and Assessment Tool (NEAT) report as an ‘Innovator’ in Digital Banking Services.

* Route Mobile announced that its board will meet on June 28th, 2022 to consider buyback of shares.

Derivative Ideas

KOTAKBANK gained 0.86% and closed at 1684.1 on 22nd June. The BANKNIFTY has been consolidating in a range of 32400-33600 and KOTAKBANK is no different. The stock has been sliding lower gradually, finding resistance at the 1695-1710 zone. Trading below its important MAs with Shorts still in its FUTS, we expect KOTAKBANK to test 1630 levels in the near term and thus suggest initiating Shorts with the PE option.

Strategy:- BUY KOTAKBANK 1680 PE @ 15-18, STOPLOSS 5, TARGET 40.

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