Nifty levels:
Nifty spot close @7818
Nifty future close @7817
Today’s view on Nifty
Selling opportunity as remain below 8000 we may see 7500-7450 in coming days. Above 8000 major resistance zone will be 8200-8250.
Bank Nifty levels:
Bank nifty spot close @16631
Bank nifty future close @16413
View on Banknifty
Short covering is expected from lows, but no buying as remain below 16600.
MARKET COMMENTERY
A rally in global markets took Indian stocks higher for the second straight trading session. The barometer index, the S&P BSE Sensex, jumped 365.71 points or 1.44% at 25,683.58, as per the provisional closing data. The 50-unit CNX Nifty rose 130.35 points or 1.7% at 7,818.60, as per the provisional closing data. However, both these key benchmark indices trimmed gains after a sharp intraday surge. The Sensex jumped 502.69 points at the day's high of 25,820.56 in afternoon trade. The Nifty jumped 157.80 points at the day's high of 7,846.05 in afternoon trade.
STOCK BUZZ
• Telecom stocks jumped after the Union Cabinet approved guidelines allowing telecom spectrum trading. Reliance Communications (up 11.21%), Idea Cellular (up 2.09%), Bharti Airtel (up 2.52%) and Tata Teleservices (Maharashtra) (up 5.1%) surged. Spectrum trading will allow better spectrum usages as the idle spectrum from the hands of one service provider gets transferred to the other service provider who is facing spectrum crunch.
• Among public sector banks, Punjab National Bank (up 3.48%), UCO Bank (up 2.8%), Bank of Baroda (up 4.74%), State Bank of India (SBI) (up 2.84%), Canara Bank (up 3.1%), Bank of India (up 4.59%), Corporation Bank (up 0.68%), Syndicate Bank (up 0.26%), Allahabad Bank (up 0.46%), Union Bank of India (up 0.48%) and United Bank of India (up 0.48%) edged higher.
HOT PURSUIT
• The sentiment on the domestic bourses was also boosted by the recommendation by a committee set up by the previous government to assess and make recommendations regarding international competitiveness of Indian financial sector that the levy of Securities Transaction Tax (STT) in the futures & options be abolished. The Sensex bounced after hitting its lowest level in more than 15 months. The recovery for the Nifty came after the index hit its lowest level in almost 14 months earlier during the trading session.
• A firm trend in global markets aided the upmove on the domestic bourses. Chinese stocks jumped on expectations that the Chinese central bank will inject more stimulus for the economy after weak trade data for August. European stocks surged after the latest data showed German exports and imports rose to their highest level on record in July. Trading in US index futures indicated that the Dow could gain more than 300 points at the opening bell.
OPTION STRATEGY
In today’s session we have seen call writing in 7900 and 8000 strike price, we may see 7900 as a strong resistance level in coming days.
MARUTI 4200 and 4350 calls and puts were so active, we may see buying above 4100 level.
DLF 110/120 puts were so active today, we may see more selling as remain below 120.
STOCKS TO WATCH
TATASTEEL:
Sell TATASTEEL below 235 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
• GAIL ABOVE….? TGT…..?STOP LOSS……?
• SELL ICICI BANK BELOW…..?...TARGET….?..STOPLOSS…?
• SELL ONGC BELOW….? STOCK MAY SHOW 190/210 LEVEL IN COMING DAYS WITH STOP LOSS…?
