Nifty and Bank Nifty Trends 19-Oct-15

Nifty levels:

Nifty spot close @8238
Nifty future close @8262

Today’s view on Nifty

Selling opportunity only below 8000 level, before that every dip will be a buying opportunity.

Bank Nifty levels:
Bank nifty spot close @17912
Bank nifty future close @18002

View on Banknifty

Fantastic recovery from lower level, we may see 18250-18500 level in coming days, no sell only buy on dips.

MARKET COMMENTERY

Gains in private sector banks, auto stocks and index heavyweights L&T, HDFC and Reliance Industries (RIL) helped key benchmark indices register decent gains. The barometer index, the S&P BSE Sensex, surged 214.56 points or 0.79% at 27,224.70, as per the provisional closing data. The 50-unit CNX Nifty rose 58.65 points or 0.72% at 8,238.15, as per the provisional closing data. The two key benchmark indices witnessed a sudden surge during the latter part of the trading session after languishing in red until about 14:00 IST. The Sensex provisionally settled above the psychological 27,000 level. Earlier, the Sensex had fallen below that level after initial slide. The Sensex had finished a tad above the psychological 27,000 level yesterday, 15 October 2015, after registering decent gains.

STOCK BUZZ
1. Among PSU banks, IDBI Bank (up 3.3%), State Bank of India (up 3.19%), United Bank of India (up 0.67%), Syndicate Bank (up 0.21%), Punjab National Bank (up 0.69%) and Corporation Bank (up 0.33%) gained. Canara Bank (down 0.18%), Bank of Baroda (down 0.53%) and Union Bank of India (down 1.38%) declined.
2. Shares of public sector oil marketing companies (PSU OMCs) edged higher after raising diesel prices. BPCL (up 1.96%), HPCL (up 2.17%) and Indian Oil Corporation (IOCL) (up 1.46%) gained. IOCL has announced increase in the retail selling price of diesel by 95 paise per litre at Delhi (including state levies) with corresponding price revision in other states. With the latest revision, the price of diesel in Delhi stood at Rs 45.90 per litre.

HOT PURSUIT
1. Meanwhile, data released by the government after market hours yesterday, 15 October 2015, showed that India's merchandise exports declined for tenth straight month in September 2015. Merchandise exports dropped 24.3% to $21.85 billion in September 2015 over September 2014. Imports dipped 25.4% to $32.32 billion. The trade deficit narrowed 27.6% to $10.5 billion in September 2015 from $14.47 billion in September 2014.
2. Positive lead from overseas markets aided the up move on the domestic bourses. European stocks edged higher after a lackluster reading on US consumer prices strengthened the view that the US Federal Reserve may continue to hold off on raising interest rates during the remaining part of the calendar year 2015. In Asia, Chinese and Japan stocks edged higher on stimulus hopes in those countries in the wake of recent weak economic data. US stocks surged yesterday, 15 October 2015, as falling US consumer prices added to the batch of disappointing economic data that reduces the odds of an interest-rate increase this year from the Federal Reserve.

OPTION STRATEGY

1. In today’s session we have seen call buying in 8000 and 8100 strike price, we may see 8200 as a strong support level in coming days.
2. DRREDYS 4200 and 4300 calls were so active we may see buying as remain above 4200.
3. IDEA 160 puts were so active today, we may see more selling below 160.

STOCKS TO WATCH

TATAMOTORS:
BUY TATAMOTORS AS REMAIN ABOVE 370 WE MAY SEE 400/410 LEVEL IN COMING DAYS.
ONGC:
Buy ONGC above 250 level we may see 270/280, below 250 major support will be 242.
AMBUJA CEM:
Sell AMBUJA as remain below 215 we may see 205/195 level in coming days.

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