FUTURES & OPTIONS

Mirroring the trend in the cash segment lack luster trading activity was seen in the derivative segment. Option activity with the highest concentration of call options at 9,300 strike and put options at 9,100 strike define the range of Nifty. Cut all short term trading longs if Nifty slides below the support level of 9,100. Sentiment indicators suggest further weakness in near term.

Punters advise to take stock-specific view. Renewed buying interest was seen in banks, FMCG and realty sectors. Strong earnings growth expectation on the banking sector has helped the Bank Nifty touch highs. Results of HDFC Bank, YES Bank and Indusind will provide clues to the “health” of the sector. Expect sharp buying in PSU banks, say industry sources. Stay invested for further gains.

Ahead of GST rollout, FMCG counters are witnessing quiet accumulation. Further gains indicated in Dabur, ITC and HUL.

Weak results from Infosys disappointed the markets. With revenue guidance of Infosys short of expectations, marketmen ‘fear’ the same from other biggies in the sector. Stay away from the sector till clarity over medium term outlook is clear.

Profit booking was seen in the metal space. Further short-term weakness was not ruled out. Use present weakness to buy JSPL, JSW and Tata Steel.

Despite weak IIP data, select capital goods were seen attracting buying interest at lower levels. Buy on declines BHEL, Exide and Crompton.

Strong rupee has prompted buying in select stocks having dollar exposure.

Other stocks looking good are BPCL, Coal India, Dabur, DCB Bank, HPCL, IOC, Indigo, ITC, Karnataka Bank, NCC, Power Grid, Suzlon, Ujjivan and YES Bank.