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Nifty Outlook

Markets remained volatile and ended with a cut of nearly half a percent. After the initial downtick, the benchmark hovered in a narrow range for most of the session however selling pressure in the final hour pushed the markets lower. A mixed trend was witnessed amongst the sectoral indices wherein metal, energy and realty were the top losers. The broader markets, midcap and smallcap, continued to underperform which ended lower in the range of 1.3-1.7%.

We reiterate our bearish stance on the markets, in absence of any positive trigger. Participants shouldn’t read much into a single-day rebound and wait for some decisive reversal signal. Besides, stability on the global front is equally critical for any sustained move. Meanwhile, since most of the sectors are trading under pressure, the focus should be on stock selection and using intermediate rebound to create shorts.

News

ICICI Bank announced a tie-up with Santander bank in Britain which is aimed at facilitating the banking requirements of corporates operating across both countries. The MoU between ICICI and Santander UK Plc, signed in Mumbai, is designed to establish a framework of partnership between the banks to meet the financial service requirements of corporate customers operating within the India-UK corridor.

Asian Paints Q4FY22 revenue was up 18.7% at Rs 7,893 cr. Decorative business volume growth at 8% while Industrial coatings and international business both delivered double -digit revenue growth. Its net profit rose marginally by 0.5% YoY at Rs 874cr.

Polycab India Q4FY22 revenue was up 35% YoY at Rs 3,979 cr. Its net profit was up 19% YoY at Rs 322.1cr.

TATAMOTORS has been gradually drifting lower after the consolidation breakdown. The chart pattern and prevailing market sentiment indicate the corrective move to extend further. We thus recommend creating shorts in the given range through the Put option.

Derivative Ideas

HINDPETRO gained 0.8% and closed at 270.5 on 10th May. The stock has been finding support at 262-264 levels and seeing good traction after that. Now after the hammer candlestick pattern formation at the support on the daily chart, HINDPETRO is showing some strength. Holding 261, the stock is poised to see good upside in the coming days. We thus suggest initiating Longs as per the given levels.

Strategy:- BUY HINDPETRO @ 266-268, SLOSS AT 261, TRGT 278.

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