Nifty levels:
Nifty spot close @7785
Nifty future close @7792
Today’s view on Nifty
Selling opportunity as remain below 8100 we may see 7600-7500 in coming days. Above 8100 major resistance zone will be 8200-8250.
Bank Nifty levels:
Bank nifty spot close @16530
Bank nifty future close @16550
View on Banknifty
From last so many days, we are continuously saying that sell bank nifty on every rise, we hope you followed our strategy and booked handsome profit. More fresh fall below 16500.
MARKET COMMENTERY
Banking and metal stocks led sell-off on the bourses. The barometer index, the S&P BSE Sensex, was off 624.81 points or 2.38% at 25,658.28, as per provisional closing data. The 50-unit CNX Nifty was down 185.45 points or 2.33% at 7,785.85, as per provisional closing figures. Data showing slowdown in India's economic growth and weakness in global stocks hit sentiment on the domestic bourses adversely. The Sensex provisionally settled below the psychological 26,000 level. Earlier, the Sensex regained the psychological 26,000 level after falling below that level in early trade.
STOCK BUZZ
1. Bank stocks declined. ICICI Bank shed 2.54%. State Bank of India (SBI) declined 3.16%. The Reserve Bank of India (RBI) after market hours yesterday, 31 August 2015, named SBI and ICICI Bank as domestic systemically important banks (D-SIBs). Under this framework, the additional Common Equity Tier 1 (CET1) requirements as a percentage of Risk Weighted Assets (RWAs) applicable to ICICI Bank is 0.2% while for State Bank of India (SBI) it is 0.6%. The additional Common Equity Tier 1 (CET1) requirements applicable to D-SIBs will be applicable from 1 April 2016 in a phased manner and would become fully effective from 1 April 2019. The additional CET1 requirement is in addition to the capital conservation buffer.
2. Metal and mining shares edged lower after twin surveys showed China's manufacturing sector in the grip of its worst slump in several years. Jindal Steel & Power (down 3.98%), Hindustan Copper (down 3.85%), Steel Authority of India (down 6.39%), Hindalco Industries (down 5.62%), Tata Steel (down 3.98%), NMDC (down 0.5%), JSW Steel (down 2.38%), Vedanta (down 4.46%) and Hindustan Zinc (down 1.1%), edged lower. National Aluminium Company was unchanged at Rs 32.30. China is the world's largest consumer of steel, copper and aluminum.
HOT PURSUIT
1. India's gross domestic product (GDP) grew 7% in Q1 June 2015, slower than 7.5% expansion registered in Q4 March 2015, according to the data released by the government after trading hours yesterday, 31 August 2015. Another data showed slowdown in core sector growth in July 2015 to 1.1% in July 2015 from 3% growth in June 2015. Meanwhile, the outcome of a monthly survey showed slowdown in growth in India's manufacturing sector last month.
2. In overseas markets, European shares edged lower in today, 1 September 2015, after weak manufacturing data from China raised fresh concerns over the health of its economy and hit Asian markets. Key benchmark indices in UK, France and Germany were down by 2.43% to 2.72%.
OPTION STRATEGY
1. In today’s session we have seen call writing in 8000 and 7800 strike price, we may see 8000 as a strong resistance level in coming days.
2. MARUTI 4100 and 4150 calls and puts were so active, we may see selling below 4100 level.
3. DLF 100/110 puts were so active today, we may see more selling as remain below 100.
STOCKS TO WATCH
GLENMARK:
Sell GLENMARK below 1150 stock may show 1100-1070.
VEDANTA:
Keep selling but only on rise 60/50 levels are waiting………
TATASTEEL:
Sell TATASTEEL below 230 for the target of 215-205 in coming days, keep sell on rise.
Top PICKS OF THE DAY
1. BUY M&M ABOVE….? TGT…..?STOP LOSS……?
2. SELL ICICI BANK BELOW…..?...TARGET….?..STOPLOSS…?
3. SELL VOLTAS BELOW….? STOCK MAY SHOW 190/210 LEVEL IN COMING DAYS WITH STOP LOSS…?
