FUTURES & OPTIONS

Amidst intermittent bouts of buying, markets managed to regain lost momentum inching higher in the week gone by.

Nifty Futures ended the week 0.54 per cent higher at 10,772. Nifty Bank Futures closed 0.53 per cent higher at 26,489. Highest open interest for Nifty in the current series is placed at 11,000 call options and in 10600 put option, while for Bank Nifty Futures the highest open interest is placed at 27000 call options and 26000 put options.

The near-term trend of Nifty continues to be range bound with 10,800850 going to be a crucial resistance for upside momentum in Nifty. At the same time, halt in lower levels buying could trigger weakness in the market. A broader range bound movement is likely to continue in Nifty for next week, within a high low range of 10,850-10,650 levels. Ahead of Q2 results, renewed buying was seen in IT counters. On the back of weak rupee, industry watchers are keen on the guidance to be provided by the IT biggies. Buy on declines Infosys, TechM and TCS.

Hike in MSP prices triggered buying in FMCG and Auto on expectations of revival in rural economy say observers. Buy defensive FMCG counters like HUL and Marico on declines. Good buying interest was seen in automobile stocks. Tata Motors may see mild pullback on “Brexit” developments. Use declines to buy M&M, Hero Motocorp and Bajaj Auto.

Mild buying was seen in PSBs on expectations of “fresh” moves from finance ministry towards resolution of NPAs. Buy SBI, BoB and Canara Bank.

Punters predict revival of midcap counters in next fortnight.