FUTURES & OPTIONS

With markets moving into consolidation mode, lacklustre trading was seen in the derivative segment.

Both Nifty and Bank Nifty Index posted negative weekly returns. On the back of sharp profit booking from select quarters, Nifty witnessed a negative weekly close for the first time since the first week of May 2017.

The maximum call open interest concentration is at 9,700 calls with more than 75 lakh shares indicating strong resistance and support around 9,500 as put writers are holding position with more than 70 lakh shares. Both the strikes added fresh short positions, suggesting the perimeter for the index in the coming week.

Rera, when implemented in full, will have a significant impact on the real estate sector.

Renewed buying interest was seen in DLF, India Bulls and HDIL. Stay invested for further gains. Reports of rising demand in road construction and expansion triggered good buying in cement stocks. ACC, Ambuja Cements, India Cements and Ultratech look good for further gains.

Good buying interest was seen in energy stocks. Use declines to buy Power Grid, NTPC, GAIL, RIL and Tata Power. IT counters continue to face selling on every bulge. Avoid for present till strong signs of recovery are visible.

Stocks looking good are Aurobindo Pharma, BEML, Colgate Palmolive, L&T, L&T Finance, Kotak Bank, JP Associates, Godrej Inds, Federal Bank and India Cements. Chartist’s Corner: Price pattern reminds you that every movement of importance is but a repetition of similar price movements, that just as soon as you can familiarise yourself with the actions of the past, you will be able to anticipate and act correctly.