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Nifty Outlook

Markets managed to gain over half a percent in a volatile trading session, taking a breather after the recent slide. The Nifty index witnessed a swift rebound in the first hour after the initial fall and remained range bound thereafter. Meanwhile, the sectoral trend was mixed wherein banking, FMCG and auto witnessed buying interest while realty, energy and metal were on the back foot.

We expect choppiness to continue amid the feeble global cues so it’s prudent to place positions on both sides. Banking and financials are doing well on the expected lines and we’re seeing selective buying in auto and FMCG also on dips. On the flip side, mostly stocks from the IT and pharma space trading with a negative bias. Participants should align their positions accordingly

News

* TCS announced that Israel’s OFEK Credit Union has selected TCS’ Banking Services Bureau, powered by TCS BaNCS™, to achieve its growth and transformation goals.

* Dixon has entered into binding Term Sheet with Ibahn Illumination Pvt. Ltd. whereby Ibahn has agreed to transfer its cutting edge Technologies of smart lighting solutions (App, Firmware, Hardware, Cloud Hosted Database and WiFi based technology solutions for its lighting products).

* Gravita India, a Leading Recycling Company having its Global Manufacturing presence has been honoured with the "Rajasthan State Export Award" for highest export turnover in an event organized by Department of Industries and Commerce, Government of Rajasthan for selecting best companies of the state engaged in Export Activities.

Derivative Ideas

NIFTY gained 0.52% and closed at 17622.25 on 19th Sep. The index witnessed a pullback after Friday's fall on the back of short covering in its FUTS. Broadly Nifty has been consolidating in a range of 17400-17850. We expect the same to continue and thus suggest selling CE as per the given levels.

Strategy:- SELL NIFTY 22 SEP 18000 CE @38-40, STOP LOSS 60, TARGET5

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