MOSt Market Outlook : The market is expected to open slightly lower due to a weak performance in the Asian markets by Motilal Oswal Wealth Management
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Global Outlook:
* The market is expected to open slightly lower due to a weak performance in the Asian markets, a decline in US Index Futures ahead of the release of non-farm pay roll data today, and concerns over selling pressure from FIIs.
* Investor sentiment remains cautious ahead of the December quarter corporate earnings and amid concerns about fewer US rate cuts.
* Stock-specific action is expected to continue, Tech stocks may perform well following TCS’s impressive Q3 results, while metal stocks could see a boost due to base metal prices rising to a one-month high.
* Rising oil prices may be positive for refinery stocks, and GAIL's increased domestic CNG allocation could benefit gas stocks.
* The GIFT Nifty is marginally down by 0.2%.
Fundamental Pick: (Duration 1 Year)
MGL : Buy
(CMP : 1273, TP: 1970)
Technical View:
* NIFTY (Bearish- CMP : 23526) Nifty immediate support is at 23450 then 23300 zones while resistance at 23700 then 23800 zones. Now till it holds below 23600 zones, weakness could be seen towards 23450 then 23300 zones while hurdles are placed at 23700 then 23800 zones.
* BANK NIFTY (Bearish- CMP : 49503) Bank Nifty support is at 49250 then 48750 zones while resistance at 49750 then 50000 zones. Now till it holds below 49750 zones weakness could be seen towards 49250 then 48750 levels while on the upside hurdle is seen at 49750 then 50000 zones.
Technical Idea:
M&M : Buy
(CMP 3126 SL 3060 TP 3315)
Derivative View:
* Option Buying: Buy weekly Nifty 23400 Put till it holds below 23600 zones. Buy Bank Nifty 48600 Put till it holds below 49750 zones.
* Option Strategy: Nifty weekly Bear Put Spread (Buy 23400 PE and Sell 23200 PE) at net premium cost of 40-45 points. Bank Nifty Bear Put Spread (Buy 49400 PE and Sell 48900 PE) at net premium cost of 190-210 points.
* Option Writing: Sell weekly Nifty 22700 PE and 24300 CE with strict double SL. Sell Bank Nifty 46000 PE and 53000 CE with strict double SL.
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