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Nifty Outlook

Markets ended with modest gains on the expiry day of October month derivatives contracts amid mixed cues. After the initial uptick, the Nifty index oscillated in a range and finally settled closer to the upper band of the day’s range at 17,736.95 levels. Meanwhile, sectoral indices also traded mixed wherein buoyancy in realty, metal and oil&gas kept the traders busy while the IT pack was on the back foot. The broader indices too traded in sync with the trend and gained nearly half a percent each.

The consolidation in Nifty is on the expected lines and we recommend focusing more on the sector/stock selection for now. Apart from banking, sectors like auto and selectively pharma, realty and metal are likely to do well in near future. Participants should align their positions accordingly.

News

JSW USA ties-up financing of USD 182 Mn with Intesa Sanpaolo and Banco BPM, includes USD 70 Mn under SACE guarantee, for modernizing the Baytown Plate Mill facility

PNB Housing Finance posted 11.7% rise in its Q2 net profit at Rs 266.6 Cr up by 13.4% YoY and Net Interest Income came in at Rs 633.7 Cr up by 36.2% YoY.

Century Textiles announced its Q2FY23 results with its revenue at Rs 1,232 Cr up by 21.2% YoY, it reported EBITDA at Rs 180 Cr up by 60.7% YoY and reported a net profit of Rs 70 Cr up by 117.8%

Derivative Ideas 

NIFTY gained 0.46% and closed at 17736.95 on 27th Oct. The index, after opening with a positive gap, constantly faced pressure on the back of selling in Near the money Calls on its monthly expiry. However the structure still remains positive. We expect the index to trade with positive bias in the short term in a range of 17500-17850, thus suggesting selling PE as per the given levels

Strategy:- SELL NIFTY 3 NOV 17200 PE @ 33-35, STOP LOSS 50, TARGET 5.

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