Bank Nifty Market Tips For Today

Nifty levels:

Nifty spot close @7872

Nifty future close @7869

Today’s view on Nifty

Nifty future showing strong move today, buy as remain above 7790 we may see 7900-7950. Fresher buy will be seen above 7950 for the target of 8000-8050.

Bank Nifty levels:

Bank nifty spot close @16911

Bank nifty future close @16899

View on Banknifty

Buy banknifty future above 16900 for the target of 17100-17250, below 17900 we may see little profit booking from upper level, and we may see 16500.

MARKET COMMENTERY

Favourable macroeconomic data aided gains for Indian stocks as trading for the week began. The barometer index, the S&P BSE Sensex, jumped 225.38 points or 0.88% at 25,835.59, as per provisional closing data. The 50-unit CNX Nifty rose 82.95 points or 1.06% at 7,872.25, as per provisional closing data. Metal, mining and power sector stocks led gains for key benchmark indices. The latest macroeconomic data showed pick up in industrial production growth, a benign current account deficit and wholesale prices continuing to remain in negative zone.

STOCK BUZZ

1. Shares of power sector companies gained on media reports that Prime Minister Narendra Modi is set to meet bosses of loss-making state-run electricity utilities today, 14 September 2015, to debate a rescue package for the power transmission and distribution sector. Shares of steel companies gained on reports that the government will soon notify a 20% import tax on some hot-rolled steel products to give a boost to the sagging domestic steel industry amid surging imports.

2. Jaiprakash Power Ventures rose 3.27% at Rs 6. The company on Saturday, 12 September 2015, announced that its 400 megawatts (MW) Vishnuprayag hydro power plant, which was temporarily shut down with effect from 25 June 2015, has resumed power generation with effect from 11 September 2015. The company had to suspend operations at the power plant in June 2015 due unprecedented flood in river Alakhnanda.

HOT PURSUIT

1. On the macro front, lower global crude oil prices and a recovery in the rupee against the dollar augur well for India. India imports about 80% of its crude requirements and lower crude oil prices ease concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure. In the global commodities markets, Brent for October settlement was currently off 37 cents at $47.77 a barrel. The contract had fallen 75 cents or 1.53% to settle at $48.14 a barrel during the previous trading session. The Brent October contract expires tomorrow, 15 September 2015. Brent for November settlement was currently off 34 cents at $48.70 a barrel.

2. Meanwhile, the annual rate of inflation based on monthly wholesale price index (WPI) stood at minus 4.95% (provisional) for the month of August 2015 compared to minus 4.05% (provisional) for the previous month and 3.85% during the corresponding month of the previous year, according to the data released by the government during market hours today, 14 September 2015.

OPTION STRATEGY

1. In today’s session we have seen call buying in 7800 and 7900 strike price, we may see 7800 as a strong support level in coming days.

2. SBIN 240 and 250 calls and puts were so active, we may see buying above 235 level.

3. HDIL 65/70 calls were so active today, we may see more buying as remain below 58.

STOCKS TO WATCH

YESBANK

Buy YESBANK as remain above 720 we may see 750-760 level in coming days.

VEDANTA:

Keep selling but only on rise 60/50 levels are waiting………

AXISBANK:

Buy AXISBANK as remain above 490 we may see 510/520 level in coming days.

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