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Nifty Outlook

It was a roller-coaster ride for markets as the Nifty swung volatile in a broader range and finally settled around the day’s low. Initially, supportive Asian cues triggered a firm start which was further boosted by healthy buying in banking majors and a rebound in metals, energy and pharma pack. However, the tone changed completely in the second half and the index surrendered all its gains. Eventually, the Nifty index ended in the red to settle at 15,810 levels. In line with the benchmark, the broader indices ended with a marginal cut in the end.

The sharp decline in the index can be attributed to the uncertain global markets and caution ahead of the earnings season. On the index front, the Nifty should hold decisively above 15,900 to inch towards 16,200 while a decline below 15,600 would again put the bears back in the game. Having said that, we maintain our bullish view on auto, FMCG, select pharma and realty counters and suggest utilizing dips to look for buying opportunities in these spaces.

News

* Tata Motors JLR UK sales were down 14% at 5,305 units versus 6,166 units, YoY, while sales up 12% at 5,305 units versus 4,737 units, MoM.

* Krsnaa Diagnostics announced that it has emerged as lowest bidder to setup radiology unit at Indira Gandhi Hospital, Delhi.

* Sigachi Industries, India has ventured into the human nutritional segment, with a prime focus on B2B markets, in India and across the globe.

Derivative Ideas

NIFTY shed 0.18% and closed at 15752.05 on 1st July. The index after opening flat witnessed pressure in the first half, however it managed to close flat giving a rebound after taking support at 15500 levels. The data suggests base formation around 15500-15600 levels at least for the short term. We expect NIFTY to test its hurdle at 15950 in coming sessions and thus suggest selling PE as per the given levels.

Strategy:- SELL NIFTY 7 JUL 16000 CE@ 38-40, STOP LOSS 60, TARGET 5.

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