Liquidity and Euphoria driving bulls crazy
Look out For Sbi Icici Yes Bank.....
Bank Sector
Nifty opened on a strong note yesterday in spite of weak closing
on Friday’s trade. Nifty surged by 242 points, the highest ever
gain in a single trading session. The index closed almost at
day’s high after testing its life time high of 5682 levels. The
breadth of the market remained positive suggesting buying in
mid -cap and small-cap stocks as well. Nifty Oct futures have
seen closure of short positions while, Nov futures have
witnessed fresh build up of long positi ons. Nifty Nov futures
have added 13 lakh shares addition in open interest along with
the increase in premium to 17.55 points from 12.15 points. On
the options front Nifty Call options have seen closure of
positions while put options have seen fresh accumulation of
long positions indicating market to remain highly volatile in the
near term. The market is expected to open on a flat to positive
note today; traders are advised to assume long positions if Nifty
holds above 5650 levels for upside targets of 5710 and 5780
levels. Alternatively they m ay assume long positions from lower
supports of 5600 and 5560 levels with a final stop loss placed at
5450 levels.
Look out for PUNJLLOYD And TCS for upside
Mudra Lifestyle(Rs.83.55) is likely to hit a century on expectation of good Q2 numbers.
We have a moderately bullish view on SBI. We recommend Bull Call Spread strategy:
o Buy One SBI Oct 1980 CA @ 56.00-58.00
o Sell One SBI Oct 2040 CA @ 42.00-44.00
o BEP: 1994
o Tgt: 2040
o Investment: Rs.95,000 (Approx)
o Time Frame: 5-6 days
IDBI Buy 146-149 sl 142.05 for target 163-165 5-6 Days