Nifty levels:
Nifty spot close @7829
Nifty future close @7822
Today’s view on Nifty
Every rise will be a selling opportunity, we may see now fresh selling below 7800, and it could fall up to 7720-7650. But do not sell at lows, wait for rise. On dips we may expects short covering.
Bank nifty spot close @16739
Bank nifty future close @16723
View on Banknifty
Sell ban nifty future below 16800 we may see 16500-16300 levels in coming days. Above 16800 major resistance will be 16950, only above that we may see fresh buying.
MARKET COMMENTERY
Weakness in Asian stocks and caution ahead of a US Federal Reserve meeting later this week pulled key benchmark indices lower. The barometer index, the S&P BSE Sensex dropped 178.82 points or 0.69% to 25,677.88, as per provisional closing data. The 50-unit CNX Nifty lost 43.15 points or 0.55% at 7,829.10, as per provisional closing data. Metal and auto stocks led the decline for key indices which hovered in negative zone almost throughout the trading session.
STOCK BUZZ
• Steel stocks dropped. Jindal Steel & Power (down 2.96%), JSW Steel (down 4.49%), Tata Steel (down 5.22%) and Steel Authority of India (down 3.26%) edged lower. The government after trading hours yesterday, 14 September 2015, issued notification imposing a provisional safeguard duty effective from 14 September 2015 on import of hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more at the rate of 20% ad-valorem for a period of 200 days. The safeguard duty is a global safeguard measure to protect the domestic industry and the levy is applicable on import of the concerned product from all countries.
• Auto stocks declined. Tata Motors (down 3.82%), Hero MotoCorp (down 1.6%), Ashok Leyland (down 2.62%), TVS Motor Company (down 0.58%), Mahindra & Mahindra (down 1.74%), Bajaj Auto (down 0.4%) and Eicher Motors (down 1.66%) edged lower.
HOT PURSUIT
1. On the macro front, the latest data showed that inflation based on the consumer price index (CPI) remained benign last month. The headline CPI inflation eased to 3.66% in August 2015 from 3.69% in July 2015. Among the CPI components, the inflation for food and beverages rose to 2.9% in August 2015 from 2.8% in July 2015. The core CPI inflation declined to 3.8% in August 2015 from 4% in July 2015.
2. In overseas markets, Chinese stocks led decline in Asian markets after a recent batch of disappointing Chinese economic data. The Shanghai Composite Index lost 3.52%, adding to a nearly 3% drop during the previous trading session. US stocks edged lower yesterday, 14 September 2015, on caution ahead of a US Federal Reserve meeting later this week that could end with the first rate-increase in nearly a decade. The Fed's policy-making committee holds a two-day meeting on 16 and 17 September 2015. The Fed has held its benchmark short-term interest rate near zero since December 2008.
OPTION STRATEGY
1. In today’s session we have seen put buying in 7800 and 7900 strike price, we may see 7900 as a strong resistance 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
AMBUJA CEMENT:
Sell Ambuja as remain below 210 we may see 200/195 above 210 major resistance will be 217.
VEDANTA:
Keep selling but only on rise 60/50 levels are waiting………
L&T:
SELL L&T below 1590 we may 1520/1490 in coming days.
Top PICKS OF THE DAY
1. GAIL ABOVE….? TGT…..?STOP LOSS……?
2. SELL ICICI BANK BELOW…..?...TARGET….?..STOPLOSS…?
3. SELL ONGC BELOW….? STOCK MAY SHOW 190/210 LEVEL IN COMING DAYS WITH STOP LOSS…?
