Watch out for Steel Sector all going to Bombard
Weak opening but buying seen
Reliance AGM to bring good news for market
RIL to soon get formal nod for KG gas price:After a delay of over four months, Reliance Industries is set to receive the formal approval from the government for its KG Basin gas pricing formula. The approval, which will pave the way for gas deals with customers, comes almost a month after the empowered group of ministers’ (EGoM) decision to price the gas at $ 4.2 per mmbtu
Nifty opened on a flat note yesterday and witnessed high
volatility in the first half of the trading session. However Nifty,
bounced back in the later half of the session after taking support
twice at 5425 levels. The index has breached and closed above
5500 levels for the first time ever. The breadth of the market
remained positive at 629:491 indicating buying continued in
mid -cap and small -cap stock as well. Nifty October futures have
witnessed accumulation of long positions; October futures have
added 12 lakh shares in open interest along with significant
increase in premium from 7.30 points to 20.20 points. On the
options front, Nifty 5600 call option had seen long accumulation
while, 5400 put option had witnessed writing suggesting fu rther
upsides in the markets. The market is expected to open on a flat
to positive note today; traders are advised to trade long as long
as Nifty holds above 5480 levels for upsides of 5530 and 5580
levels. Alternatively, long positions can be assumed from lower
support of 5425 levels with a final stop loss placed at 5380
levels.
Option
We have a moderately bullish view on Tata Steel. We recommend Bull Call Spread strategy:
o Buy One Tata Steel Oct 860 CA @ 34-36
o Sell One Tata Steel Oct 900 CA @ 23-25
o BEP: 871
o Tgt: 900
o Investment: Rs.1,40,000 (Approx)
o Time Frame: 5-6 days
.
Power Grid Buy 112 for target 120-122 3-4 days
Salora International(Rs.190.00) is expected to come out with good numbers. Watch for good gains
Kouton's Retail will be listing today on the bourses. The IPO has been subscribed 45.21 times. Watch out for all the listed retail plays today. DLF Ltd on Thursday announced its plan to raise upto $1.5 billion loan from the overseas market for executing its business plan and to pick up stake in DLF Asset's proposed IPO in Singapore
Infra Stocks had a field day yesterday with IVRCL, Nagarjuna Construtions, Akruti Nirman along with the media stocks like Adlabs(one more ADAG group company),TV Today and TV18. After IFCI its the turn of TFCI(Tourism Finance Corporation) to go for a stake sale soon
HDFC Bank,Tata Metalliks,Geojit Securities,Omnitech Info will be declaring results today. Omnitech might be the dark horse here.
Indian Markets are likely to display huge volatility. We advice traders to stay away from the market. Might be stereo type but we have to accept the run is terrific. Investors hang to the market. Have a great day.