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
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.