NIFTY & BANK NIFTY MARKET TRENDS

Nifty levels:  

Nifty spot close @8361

Nifty future close @8369

Today’s view on Nifty

Buy only above 8500 level, remain below that we may see more weakness, major support level will be 8350 below that level we may see fresh short position.

Bank Nifty levels: 

Bank nifty spot close @18232

Bank nifty future close @18268

View on Bank nifty  

  

Remain below 18300 more weakness is expected, though we may see short covering from lower level but below 18300 no buying.

MARKET COMMENTERY

A sharp setback in Chinese stocks and fears that the stock market regulator Securities and Exchange Board of India (Sebi) may tighten rules on Participatory Notes (PNs) in the wake of a report by a special investigations team on black money hit sentiment on the domestic bourses adversely. PNs are a popular offshore derivative instrument used by foreign portfolio investors to invest in Indian stocks. The barometer index, the S&P BSE Sensex, hit four week low and the 50-unit CNX Nifty hit its lowest level in more than two weeks as these two key benchmark indices extended intraday losses in late trade. The Sensex fell below the psychological 28,000 mark. The market breadth indicating the overall health of the market was weak. The Sensex was provisionally off 550.93 points or 1.96% at 27,561.38. The BSE Mid-Cap index lost 1.38%. The BSE Small-Cap index fell 1.07%. All the 12 sectoral indices on BSE ended lower today, 27 July 2015. In overseas markets, Chinese stocks tumbled as new capital inflows from authorities appeared to slow.

STOCK BUZZ

1. Reliance Industries' (RIL) fell 2.15% at Rs 1,003. The stock hit a high of Rs 1,035 and a low of Rs 1,001.30 in intraday trade. The company's consolidated net profit rose 4.44% to Rs 6222 crore on 25.93% decline in total income to Rs 78962 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours on Friday, 24 July 2015. Decline in revenue was led by the 43.5% decline in benchmark (Brent) oil price in Q1 June 2015 over Q1 June 2014.

2. Metal shares declined. Tata Steel (down 5.15%), Hindalco Industries (down 4.36%), JSW Steel (down 3.7%), Vedanta (down 3.05%), Bhushan Steel (down 2.89%), NMDC (down 2.64%), Hindustan Copper (down 2.41%), Steel Authority of India (down 2.41%), Jindal Steel & Power (down 1.78%) and National Aluminum Company (down 1.75%) edged lower. Hindustan Zinc was up 0.18%.

HOT PURSUIT

1. Finance Minister Arun Jaitley reportedly said today, 27 July 2015, that the government will not react in a knee-jerk manner on a report by a special investigations team that suggested greater oversight of money laundering in stocks. Jaitley, however, said the government would apply its mind on the recommendations of the Supreme Court-appointed team in due course and would avoid any decision that could hurt investor sentiment, reports added. The Special Investigation Team (SIT) tasked with curbing black money has in its Third SIT Report submitted to the finance ministry has called for identification of beneficial ownership of Participatory Notes (PN).

2. Chinese stocks tumbled today, 27 July 2015, as new capital inflows from authorities appeared to slow. A state-owned fund called China Securities Financial Corp. had reportedly spent hundreds of billions of yuan in supporting the Chinese market after a steep slide in Chinese stocks market in the recent past. In mainland China, the Shanghai Composite index plunged 8.48%. In Hong Kong, the Hang Seng index shed 3.09%. 

OPTION STRATEGY

1. In today’s session we have seen call writing in nifty 8600 callso we can consider this as a strong resistance.

2. TECHM calls were so active, we have seen good rally in stock more upside is expected as remain above 500, we may see 530/550 level in coming days. 

3. SBIN 260/250 PUTS were so active, more sell side is expected, major resistance for the stock will be 277 once close above this level we may see 290/300 level. 

STOCKS TO WATCH

BAJAJAUTO:  

Buy BAJAJ AUTO above 2490 stocks may show some good rally we may see 2550/2570 level in coming days.

CEAT

Buy CEAT above 760 stock may show 790/800 level, remain below 760 more down side is expected.

CAIRN: 

Sell CAIRN below 175 we may see 162/155 levels remain below 175 levels.

TOP PICKS OF THE DAY

1. BUY RELIANCS ABOVE….? TGT…..?STOP LOSS……?

2. BUY ICICI BANK ABOVE…..?...TARGET….?..STOPLOSS…?

3. SELL VOLTAS BELOW….? STOCK MAY SHOW 290/280 LEVEL IN COMING DAYS WITH STOP LOSS…?