Actionable: Buy Infosys, LTTS, Maruti.

Insight Online News

From Advisory Desk : Vikash Sahay

17th December 2021

Market Outlook: US markets ended in lower by upto 2.5%, with NASDAQ leading the losses as investors moved away from high growth stocks after the FED policy announcement. Asian markets have started in mix, with SGX Nifty is indicating a flat opening. Yesterday, Nifty witnessed a range bound move after the gap up opening and once again held on to 17200 levels. One can expect stock specific will be in momentum. Today, IT stocks will be in focus after global IT firm Accenture posted stellar Q1 results and also raised guidance sharply.

Actionable: Buy Infosys, LTTS, Maruti.

Global market:
DOW:  -29
SGX NIFTY:   -20  (prev.close 17327)
NIFTY 50 : 17248
Sensex : 57901

Institution:
FII:                    -1469 Cr
DII:                   +1533 Cr

NSE:
Advances: 1411 / Declines: 1957

Currency:
Dollar: $ 76.08
Dollar Index: 96.05

Commodity:
Gold: $1804  per ounce
Crude: $74.81  per barrel

Bonds:
10 year US bond rate: 1.42
10 year Indian Bond rate: 6.37

Derivative:
PCR: 0.85
VIX:  15.89

Updates:

Sugar stocks: Government lowers the GST rate to 5% from 18% on ethanol meant for blending under the Ethanol Blended Petrol (EBP) programme.

IT stocks: Global IT firm Accenture posted strong Q4 results with double digit growth in all segments, in all markets and across the verticals. New bookings are a record $16.8 billion, 30% up yoy in both US dollars and local currency. Co expects full year revenue growth of 19-22%, compared to 12 -15% previously. Operating margin guidance increased by 10-30 bps for FY22.

Indiabulls housing finance: Company said its Promoter Sameer Ghelaut has decided to resign from its board by March end after the stake sale of 11.9% in the company and declassified as a promoter.

Securities in Ban: ESCORTS, IDEA.

Derivative View : VIX closed at 15.89. Immediate max Put OI is at 17200 then 17000. Max Call OI is at 17300 then 17400. Option data suggests a trading range between 17000 to 17400.

Derivatives update for podcast

Good morning !! Derivatives update for Friday, 17th December 2021.

India VIX was down by 7.69% from 17.21 to 15.89 levels. Volatility needs to cool down to regain stability in the market.

Nifty Put/Call Ratio (OI) increased from 0.80 to 1.03 level.

On Option front, Maximum Call OI is at 18000 then 17500 strike while Maximum Put OI is at 17000 then 16000 strike. Call writing is seen at 17500 then 17550 strike while Put writing is seen at 17200 then 16900 strike.

Option data suggests a wider trading range in between 17000 to 17500 zones.

For weekly Bank Nifty, Maximum Put OI is at 36500 strike and maximum Call OI is placed at 37000 strike. We have seen significant Call writing in 40000 strike while Put writing is witnessed at 36500 strike.

Bank Nifty Put Call Ratio decreased from 0.72 to 0.64. Implied volatility fell from 23 to 21.4 levels.

Bank Nifty (CMP 36,548.65)
Data setup for Bank Nifty suggests a trading range in between 36000/36300 to 37250 zones.

Looking ahead at the FII’s derivatives, there was short covering in index futures, position unwinding in index options and long liquidation in stock futures.

In the cash market, FIIs were net sellers to the tune of 1469 crores and DII’s were buyers worth 1533crores. FIIs Index Long Short Ratio increased to 58.95%.

Derivatives data and price set up suggests, till Nifty remains below 17350 zones, weakness could be seen towards 17100 and 17000 zones whereas major hurdle exists at 17500 zones.

Till Bank Nifty remains below 37000 zones, bounces could be sold and weakness may be seen towards 36300 and 36000 zones whereas hurdle exists at 37250 zones.

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