FUTURES & OPTIONS

Amidst sharp volatility, the derivative segment witnessed brisk trading during the week ended.

In the option segment maximum open interest was seen at 10,500 strike call option and 10,000 strike put option.

On the back of weakness triggered by the US- China trade war rhetoric, the coming week may see weak opening. However after the initial weakness, current uptrend may see Nifty touch 10,450- 10,500 levels but could eventually lead to a formation of reversal pattern at the highs and resumption of next round of declines. Exit from weak counters in the present rally.

For Bank Nifty, 25,000 psychological mark is going to act as a strong resistance zone. With the start of Q4 results season, stock specific moves are on cards.

Ahead of Q4 results, mild buying was seen in the tech counters. Commentary and guidance for FY19 hold key for near term movement of tech counters. Buy at lows Infosys, TCS, TechM and Wipro.

News flow from ICICI Bank episode is spawning rumors on other private banks. Stay alert on fresh volatility in bank counters. Contrarian’s advice buys in smaller PSU banks. Buy Allahabad Bank and PNB for ‘ relief ’ gains.

GST gains is indicated in FMCG stocks. Buy HUL, Godrej Consumer and Marico. The rally in automobile counters is likely to go on. Buy Hero Motocorp, M& M, Bajaj Auto and Tata Motors. Capital goods counters are witnessing good accumulation. Buy Voltas, CG Power, Havells and Bosch.

In near term, the earnings season and Karnataka poll results are likely to influence the market along with news flow on the trade war.