FUTURES & OPTIONS

Mirroring the weakness in the cash market, derivative segment witnessed brisk trading on sell side. Every bounce witnessed triggering of fresh shorts.

Foreign Institutional Investors selling also dampened sentiment.

Nifty futures closed below the psychological 8500 level for the first time after July second week.

Option activity suggests trading band of 8300-8600 for the Nifty.

Sector wise open interest increased in Banking, FMCG, Pharma and Metals.

Open interest decreased in Capital Goods, Textiles and Telecom sectors.

Reports that US authorities could file charges against generic drug makers on suspicion of price cartelisation triggered selling in some pharma stocks.

Industry sources indicate that in worst case scenario a few of the pharma companies would be fined. Use the present correction to pick up good counters.

PSU banks have posted mixed bag of results till date. Concerns over asset quality continue to bug markets.

Adopt wait and watch attitude for present.

Goods and Services Tax boost to Fast Moving Consumer Goods counters will be short lived one say watchers. Book profits on bulges.

Metals continued to shine brightly with resilient show. Stay invested for further gains.

Stocks looking good are Ambuja Cement, Dabur, HCL Tech, Hindalco, Hind Zinc, ITC, Indusind Bank, Titan Inds, M&M and Vedanta.