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Nifty Outlook

Markets extended the prevailing trend and posted modest gains amid mixed cues. Weakness in the global markets triggered a weak start however the Nifty index recovered in no time and inched gradually higher as the session progressed. It finally made a new record high but profit taking in the last hour trimmed the gains. Consequently, it closed 18,562.70 levels; up by 0.3%. Meanwhile, the sectoral indices traded mixed wherein energy and auto were the top gainers while metal, IT and banking traded subdued. We may see some consolidation in markets amid mixed global cues however the bias would remain on the positive side. Participants should utilise the phase to add quality names, especially from banking, IT and auto space. Besides, they may consider selective bets from the midcap and smallcap citing the recent participation.

News

* The Hydrocarbon Business of L&T has secured two prestigious offshore orders. First contract for decommissioning of offshore facilities from British Gas Exploration and Production India Limited and also secured an order from ONGC for balance works of Pipeline Replacement Project-VI Project.

* HCLTech, has signed a multi-year contract with SR Technics, a leading maintenance, repair and overhaul service provider in the civil aviation industry, to digitally transform SR Technics’ operations.

* Zydus Lifesciences has received tentative approval from the USFDA to market Levothyroxine Sodium for injection, 100 mcg/vial, 200 mcg/vial, and 500 mcg/vial. The drug will be manufactured at the group’s injectable manufacturing facility at Jarod, near Vadodara, India.

Derivative Ideas

Nifty gained 0.27% and closed at 18562.75 on 28th Nov. The index after opening negative created a new all time high at 18614.25 for the day owing to broader participation from sectors. NIFTY DEC FUTS added around 7% to its Open Interest as Fresh Longs. With significant Put selling seen at 18500 weekly strike, we expect NIFTY to maintain its positive bias and continue to trade in the range of 18400-18700, thus suggesting selling PE as per the given levels.

Strategy:- SELL NIFTY 01 DEC 18300 PE @ 28-30, STOP LOSS 50, TARGET 5.

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