Markets to take cue from Q2 earnings FUTURES & OPTIONS

Mirroring the exuberance in the underlying cash market, brisk trading was seen in the derivative segment.

With nearly all major sectors like Banks, Metals, Auto & Pharma supporting the market Nifty looks all set for further gains.

In the option segment, Nifty call option at 10,200strike has the highest open interest of more than 30 lakh shares and on put side 10,000-strike put has the highest open interest of over 70 lakh shares in open interest respectively.

Despite possible hiccups from PSU banks’ results, Bank Nifty seems to have just begun its upswing and the next leg of rally is likely to be led by the banks.

Buy on declines Axis Bank and KTK Bank for surprising gains.

Mergers And Acquisitions (M&A) action in the telecom space has put the sector back on radar of market players.

Telecom sector result in Reliance Industries Ltd’s results provided pleasant surprise on margins. Expect further gains in Bharti Airtel and Reliance Industries Ltd.

Coming above expectations Tata Consultancy Services’ results provided the necessary “trigger” for technology counters. Buy HCL Tech, Wipro and Tata Consultancy Services.

Steady IIP numbers suggest recovery in capital goods sector. Use declines to buy Siemens, Exide Inds and L&T.

Results from heavyweights like Colgate, Bajaj Auto, Ultratech Cement, Axis Bank and Wipro coming out with quarterly earnings would impact sentiment in the coming week.

Stocks looking good are HCL Tech, Asian Paints, BEL, Kotak Bank, NBCC, Voltas, Karnataka Bank and Tata Steel

C. Kutumba Rao is an avid follower of stock markets. This newspaper is not liable for decisions made on the basis of this column. Views expressed in the article are personal views of the writer.