FUTURES & OPTIONS

Mirroring the weak undercurrent in cash market, the derivative segment witnessed lower volumes during the settlement week. The breadth, indicating the overall health of the market, was weak.

Rollovers for Nifty were higher in terms of total open interest as well as the number of shares compared to last month and the last three- month average. On the options front, April series starts with the maximum open interest in put options at 10,000 strike and maximum open interest in call options at 11,000 strike. Expect continued selling pressure for the index at higher levels.

Changes in composition of Nifty 50 index may trigger stock specific action. Bajaj Finserv, Grasim Industries and Titan Company will replace Ambuja Cements, Aurobindo Pharma and Bosch in the Nifty 50 index from April 02, 2018.

Automobile companies will be reporting their sales numbers for March.

Industry observers predict robust growth from M& M, Maruti and Tata Motors. Stay invested for modest gains from present levels. From two wheeler space Hero Motocorp and Bajaj look good.

Renewed buying interest was seen in Technology counters. Use dips to buy Tech Mahindra, Wipro and HCL Tech.

Modest relief rally indicated in banks. From private bank space Kotak Bank, InduSind Bank and YES Bank look good for further gains. Controversy over alleged conflict of interest involving CEO and MD of ICICI Bank may cause damage.

Charts suggest buying in Apollo Tyres, Divi Labs, Godrej Consumer, IRB, Muthoot finance, Marico, SRF, Titan Inds and Tech Mahindra; and selling in ACC and Ceat.