IGI Logo

Global Outlook:

* The market is expected to open on a strong note, driven by a rally in the US market, where all three major indexes posted their largest daily percentage gains in over two months. This rally was fuelled by lower-than-expected US December core inflation data and strong earnings from major US banks.

* Both the Dow Jones and Nasdaq Composite saw gains of 1.7% and 2.5%, respectively, amid expectations that the US Federal Reserve might implement two rate cuts instead of one.

* December's core inflation came in at 0.2%, below the anticipated 0.3%, while the US CPI year-over-year was 2.9%, in line with expectations.

* The US 10-year bond yield fell by 15 basis points to 4.63%, and the US Dollar Index dropped below 109.

* The Nifty is up by 165 points with hopes that the RBI may lower interest rates after domestic inflation dropped to a 4-month low of 5.2%.

* Tech stocks will be in focus with Infosys set to announce its Q3 results today and rally in global IT major index Nasdaq Composite.

Fundamental Pick: (Duration 1 Year)

Maruti Suzuki  : Buy

(CMP : 11947, TP: 14500)

Technical View:

*NIFTY (Bearish- CMP : 23213) Nifty immediate support is at 23000 then 22800 zones while resistance at 23350 then 23500 zones. Now till it holds below 23300 zones, weakness could continue towards 23000 then 22800 zones while hurdles are placed at 23350 then 23500 zones.

* BANK NIFTY (Volatile- CMP : 48751) Bank Nifty support is at 48500 then 48250 zones while resistance at 49000 then 49500 zones. Now it has to hold above 48500 zones for a bounce towards 49000 then 49500 levels while on the downside support is seen at 48500 then 48250 levels.

Technical Idea:

Escorts : Buy

(CMP 3478    SL 3340    TP 3750)

Derivative View:   

* Option Buying: Buy weekly Nifty 23750 Put till it holds below 23800 zones. Buy Bank Nifty 48800 Put till it holds below 50000 zones.

* Option Strategy: Nifty weekly Bear Put Spread (Buy 23700 PE and Sell 23500 PE) at net premium cost of 50-60 points. Bank Nifty Bear Put Spread (Buy 49700 PE and Sell 49200 PE) at net premium cost of 200-220 points.

* Option Writing: Sell weekly Nifty 23400 PE and 23950 CE with strict double SL. Sell Bank Nifty 46500 PE and 53500 CE with strict double SL.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html SEBI Registration number is INH00000041