Nifty levels:
Nifty spot close @7717
Nifty future close @7792
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 spot close @16252
Bank nifty future close @16550
View on Bank Nifty
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
The government's decision not to levy minimum alternative tax (MAT) on stock market transactions of foreign institutional investors (FIIs) failed to buoy sentiment on the bourses. The barometer index, the S&P BSE Sensex, lost 209.31 points or 0.81% at 25,487.13, as per provisional closing data. The 50-unit CNX Nifty lost 68.85 points or 0.88% at 7,717, as per provisional closing data. The Sensex and CNX Nifty, both, hit their lowest level in more than a year. Shares of state-run power and coal sector firms and banking stocks led losses for key benchmark indices. Bank stocks edged lower after the Reserve Bank of India issued draft guidelines on computation of banks' base rate based on marginal cost of funds.
STOCK BUZZ
• Bank stocks edged lower after the Reserve Bank of India issued draft guidelines on computation of banks' base rate based on marginal cost of funds. Among PSU banks, Union Bank of India (down 5.55%), Punjab National Bank (down 3.3%), State Bank of India (down 3.7%), Canara Bank (down 2.93%), Bank of India (down 2.67%), Bank of Baroda (down 1.04%), Andhra Bank (down 1.32%), IDBI Bank (down 0.96%), Syndicate Bank (down 0.79%) and United Bank of India (down 0.47%) edged lower. Corporation Bank (up 1.18%) and Oriental Bank of Commerce (up 0.04%) edged higher.
• Among private sector banks, Axis Bank (down 2.3%), ICICI Bank (down 2.54%), Kotak Mahindra Bank (down 1.11%), Yes Bank (down 0.92%), HDFC Bank (down 0.46%) and IndusInd Bank (down 1.19%) edged lower.
HOT PURSUIT
• As per RBI's draft guidelines, the components of a bank's base rate will include cost of funds, negative carry on CRR/SLR, un-allocable overhead costs and average return on net worth. Negative carry on the mandatory CRR arises because the return on CRR balances is nil. Negative carry on SLR balances may arise if the actual return thereon is less than the cost of funds. The marginal cost of funds will be arrived at by taking into consideration all sources of fund other than equity. The actual lending rates on the loans will be determined by adding the components of spread to the base rate. The base rate is the minimum lending rate charged by a bank.
• Meanwhile, the government after trading hours yesterday, 1 September 2015, announced that it has accepted the recommendation of the Justice A.P. Shah Committee not to levy minimum alternative tax (MAT) on stock market transactions of foreign institutional investors (FIIs) for the period prior to 1 April 2015. The latest announcement comes after the government in its February 2015 Budget announced that MAT will not be applicable for FIIs from 1 April 2015.
OPTION STRATEGY
1. In today’s session we have seen call writing in 7800 and 7900 strike price, we may see 7900 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
TATASTEEL:
Sell TATASTEEL below 230 stock may show 210/200 LEVELS.
VEDANTA:
Keep selling but only on rise 60/50 levels are waiting………
HDFC:
Sell HDFCL below 1170 for the target of 1110/1080 in coming days, keep sell on rise.
Top PICKS OF THE DAY
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