Nifty and Bank Nifty Market Trends

Nifty levels:  

Nifty spot close @8516

Nifty future close @8544

Today’s view on Nifty

Nifty closed above its resistance level, more buying opportunity as remain above 8500 we may see 8620/8650 level soon.

Bank Nifty levels: 

Bank nifty spot close @18972

Bank nifty future close @19080

View on Bank nifty  

Smart move from dips keep buying no selling please, good move in PSU banks, major support zone will be 18650-18800.

MARKET COMMENTERY

A divergent trend for index constituents caused modest losses for key benchmark indices. While metal and PSU bank stocks rose, shares of telecom companies and oil exploration and production (E&P) firms dropped. Benchmark indices witnessed high intraday volatility. The barometer index, the S&P BSE Sensex, provisionally settled above the psychological 28,000 level, having alternately moved above and below that mark intraday trade. Earlier, the Sensex had fallen below the psychological 28,000 level amid high volatility in mid-morning trade. The market breadth indicating the overall health of the market was positive. The Sensex was provisionally off 96.54 points or 0.34% at 28,090.52. The BSE Mid-Cap index was provisionally up 1.11%, outperforming the Sensex.  

STOCK BUZZ

1. Shares of oil exploration and production (E&P) companies fell after crude oil prices dropped sharply yesterday, 3 August 2015. Cairn India (down 2.77%), ONGC (down 2.1%), and Reliance Industries (RIL) (down 1.16%) declined. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms. Oil India rose 0.03% 

2. Shares of public sector oil marketing companies (PSU OMCs) edged higher as global crude oil prices dropped sharply yesterday, 3 August 2015. Indian Oil Corporation (up 0.48%), HPCL (up 0.95%) and BPCL (up 2.83%) edged higher. 

HOT PURSUIT

1. Meanwhile, India's weather office, the India Meteorological Department (IMD), after trading hours yesterday, 3 August 2015, announced that the rainfall over the country as a whole during second half of southwest monsoon season (August to September) is likely to be below normal with a probability of 86%. Quantitatively, the rainfall over the country as a whole during the second half of the season (August to September) is likely to be 84% of long period average (LPA), with a model error of plus/minus 8%. From April to July 2015, El Nino conditions have strengthened from weak to moderate level. Latest forecast from ESSO-IMD-IITM coupled model indicates 72% probability of El Nino conditions to become strong during remaining part of the monsoon season. Over the Indian Ocean, there is 86% probability of current neutral Indian Ocean Dipole conditions to continue during the monsoon season. 

2. Meanwhile, the Reserve Bank of India (RBI) kept its benchmark lending rate viz. the repo rate unchanged at 7.25% after a monetary policy review today, 4 August 2015. The RBI also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liability (NDTL). RBI Governor Dr. Raghuram G. Rajan said that the RBI has retained the accommodative stance of monetary policy. As the RBI awaits greater transmission of its front-loaded repo rate cuts since January 2015, it will monitor developments for emerging room for more accommodation, Rajan said in the written monetary policy statement. While the RBI has cut repo rate by 75 basis points since January 2015, the median base lending rates of banks has fallen by only around 30 basis points so far. 

OPTION STRATEGY

1. In today’s session we have seen call writing in 8600 strike price, we may see 8600 as a strong resistance level in coming days. 

2. KOTAK BANK 700 and 720 calls and put were so active, we may see some more falls in stock below 700.  

3. TATASTEEL 260/270 calls were so active today, we may see more buying as remain below 256.

STOCKS TO WATCH

SBIN:  

Buy SBIN above 282 stock may show 300-310 level in coming days, below 282 major support will be 274.

ICICIBANK:

Buy ICICIBANK above 299 stock may show 325/335 level, remain below 299 more down side is expected.

UNIONBANK: 

Buy UNIONBANK above 196 for the target of 208/214 in coming days, keep buy on dips.

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 290/280 LEVEL IN COMING DAYS WITH STOP LOSS…?