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Nifty Outlook

Markets ended marginally lower in a volatile trading session amid feeble global cues. After the gap down start, the Nifty index gradually inched higher as the session progressed and retested Tuesday’s high however profit taking in the last hour pushed the index lower. It finally settled at 18,003.75 levels; down by 0.4%. Banking and metal put a good show among the sectoral pack while IT, energy and realty remained under pressure.

Markets are in strong hands and such a strong recovery amid the global mayhem has further strengthened our belief. We thus reiterate our view to maintain a positive bias however pick the sectors wisely. The IT pack is most vulnerable to the global decline while banking is just inches away from its record high. In short, use dips to buy strength; not weakness

News

* IBM and Bharti Airtel will work together to deploy Airtel's edge computing platform in India, which will include 120 network data centers across 20 cities. Once deployed, the platform is designed to enable large enterprises across multiple industries including manufacturing and automotive to accelerate innovative solutions.

* KEC International announced it has secured new orders of Rs 1,108 cr across its various businesses including transmission & distribution and railways. The transmission & distribution business has secured orders for T&D and cabling projects in India, Middle East and Africa.

* August WPI Inflation at 12.4% as against 13.9% MoM. Food inflation at 9.9% vs 9.4% MoM.

Derivative Ideas

NIFTY shed 0.37% and closed at 18003.75 on 14th Sep. The index recoup its opening cut on the back of addition of Longs in its FUTS. However fresh call writing is seen at 18000 and beyond strikes. We expect NIFTY to consolidate in the range of 17900-18200 in the short term and thus suggest selling CE as per the given levels.

Strategy:- SELL NIFTY 22 SEP 18500 CE @43-45, STOP LOSS 65, TARGE5

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