Earn­ings, Rain Hopes­mayLead to Sharp Moves

Nifty could rise to 8,000 in a month, but it could also fall to 7,300 if earn­ings & mon­soon dis­ap­point

The Economic Times - - Gold Returns As Much As Sensex Over Last 15 Years -

tion is seen at 8,000 strike, with open in­ter­est or out­stand­ing posi­tons at 84 lakh shares. Max­i­mum Nifty put op­tion out­stand­ing po­si­tions were seen at 7,500 strike with 47 lakh shares, fol­lowed closely by 7,000 strike with 43 lakh shares.

“Traders in de­riv­a­tives mar­ket who ear­lier be­lieved the Nifty could touch 8,000 lev­els are now also build­ing po­si­tions at Nifty 7,000 put op­tion, fear­ing cor­po­rate earn­ings could dis­ap­point street,” said Jitendra Panda, man­ag­ing di­rec­tor, Peer­less Se­cu­ri­ties.

“There are con­cerns that the mar­ket rally over last one month may not sus­tain go­ing for­ward. That is the rea­son for such ex­treme views are seen in the F&O mar­ket.”

The March quar­ter earn­ings sea­son of In­dian com­pa­nies will be­gin this week with In­fosys set to de­clare its re­sults on Fri­day. The In­dian Me­te­o­rolo gi­cal De­part­ment’s (IMD) first forecast for up­com­ing mon­soon sea­son is ex­pected around the 3rd week of April. The re­cent news flow for mon­soon sug­gest that up­com­ing Kharif sea­son is ex­pected to be nor­mal due to fad­ing of El-Nino con­di­tions over the In­dian sub­con­ti­nent.

“Nifty’s re­cent rally (13.9%) from the lows of 6,825 lev­els to 7,777 sug­gest that mar­kets are in new up­trend move, which may lead the in­dex to 8,000 lev­els,” said Na­garaj Shetti, tech­ni­cal re­search an­a­lyst, HDFC Se­cu­ri­ties.

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