Page 2 - Derivatives Strategies

Derivative strategy for Indiabulls Housing Finance from Motilal Oswal Securities

Here is the derivative strategies on Indiabulls Housing Finance from Sacchitanand Uttekar of Motilal Oswal

Derivative strategy for Tata Motors from Motilal Oswal Securities

Here is the derivative strategies on Tata Motors from Sacchitanand Uttekar of Motilal Oswal for trade today

Nifty 8,550 and 8,750 are two critical levels

The Nifty found support at 8,550. The bounce has pulled it back to test resistance at 8,750 level

Staying long with stop loss at around 8,650

The rupee volatility will also be a factor since $26 billion of dollar-rupee FCNR swaps is to be reversed over the next three months

Derivative strategy for Infosys from Motilal Oswal Securities

Here is the derivative strategies on Infosys from Sacchitanand Uttekar of Motilal Oswal for trade today

Nifty move below 8,650 or above 9,020 to define next trend

Global markets continued to be slightly nervous about a possible tightening from the US Federal Reserve (and also about surprising Bank of Japan action). But, the consensus assumption is that the Fed will maintain status quo, given several weak macroeconomic data points coming out of the US. In India, the Nifty found support around 8,700, but it now seems to be waiting for the Fed.The last high came at 8,970, while the latest low was at 8,688. The support is close enough to 8,700, which is where the last upside breakout started. Assuming the Fed is dovish, bulls can certainly hope that 8,970 will be beaten, confirming a pattern of higher highs and higher lows.Those two levels (+/- about 50 points) are important. Assuming support at 8,650-8,700 continues to hold, a bounce back to test the resistance at 8,970 may be expected. Moves beyond 8,970-9,020, (or below 8,650-8,700) should define the next trend. A breakout from these levels could swing till 8,400 or 9,250 (the latter would be a n

Moves beyond either 8,970, or below 8,650 on Nifty will define next trend

Global markets crashed on fears that the US Federal Reserve may hike rates at its policy meeting next week. But the consensus assumption is now that the Fed will maintain status quo. As far as Indian markets are concerned, the Nifty made an upside breakout about 10 sessions ago and the recent crash could help to define the next trend. The breakout beyond resistance at Nifty 8,700 set up an immediate target of 8,900-plus. That was comfortably beaten but the momentum reversed from 8,968. The downmove move has so far found support at 8,700, which is where the breakout started. Those two levels (+/- about 50 points) are important. Assuming support at 8,650-8,700 holds, a bounce back to test the resistance at 8,970 may be expected. Moves beyond either 8,970-9,020, or below 8,650-8,700 should define the next trend. A breakout from these levels could swing till 8,400, 9,250 (the latter would be a new record high).The rupee has strengthened slightly. Traders will be watching currency volatili

Upmove testing all-time high on the cards

There's been a string of new 52-week highs in the past few sessions and there's a good chance that the indices will soon move to new all time highs

8,500 and 8,700 are key Nifty levels to watch

The market has remained range bound and been unable to breakout beyond resistance at 8,700 in the last few sessions

8,700 key resistance for NSE's Nifty

The Nifty could run-up till the 9,000 or higher in the next 10 sessions if it does break past 8,700

Weakness in Nifty Bank could hurt bullish trend in Nifty

The long-awaited GST constitutional amendment Bill passed and the market has moved up since. Raghuram Rajan chairs his last policy review at the Reserve Bank of India (RBI) on Tuesday. That ends the series of major central bank meetings after Brexit. Meantime, first quarter results continue to come in.The next phase of the GST could be as tricky in legislative terms but market watchers now assume it will pass through a majority of state assemblies and the April 2017 implementation target will be met. Only time will tell if that turns out to be true but the positive sentiment should keep the market buoyant. The US Federal Reserve and the Bank of Japan both stood on status quo. RBI is also expected to maintain status quo but Rajan's last statement will be parsed for his take on economic direction. If there is a negative sounding statement or some central bank action is taken, the market could react with high volatility.The earnings season has been fairly positive. Technically, the Nif

Nifty could run up to 9,000, if GST is passed

This is the GST end game: Either it passes now or it is effectively shelved until the next general elections

Uptrend could take Nifty to 8,800 levels

Technically, the Nifty continue to look bullish, with a series of successive 52-week highs

Bullish trend continues, volatility ahead

The monsoon session of Parliament, earnings season and central bank attitude remain the key drivers for the Indian stock market

Stay long till there is a clear trend reversal

The Indian and Chinese macro-data will probably not make much in the way of instant difference to sentiment

Expect market to be range-bound in near term

The world is readjusting to post-Brexit reality. Two big down-sessions have been followed by short-covering

Nifty 8,000 and 8,300 are key levels to watch out for

Given the 8,200-8,300 zone has been traded multiple times, a breakout could mean quite a big swing

Expect volatility across equity, forex markets

Steady buying from foreign institutional investors (FIIs) ensured index gains through last week but the market trend seems to have turned around on Monday. Global selling pressure impacted India as well and there is a chance that this will continue.The Reserve Bank of India held status quo and its stated worries about inflation were confirmed when the consumer price index (CPI) for May came out higher. A fair amount of volatility is also likely across forex markets in the near-term.The US Federal Open Market Committee (FOMC) is due to have its policy meeting and so is the Bank of Japan. That will be followed next week by the UK's referendum of "Brexit" on June 23. These events may cause some volatility and if the UK does actually exit the EU, there could be massive swings.Meanwhile, the latest macro-data from India is disquieting. While the latest GDP estimates suggest that growth hit 7.9 per cent in Jan-Mar 2016, the Index of Industrial Production fell into negative territory in April

Trend appears bullish but brace for high volatility

The Nifty is now well above its own 200-DMA and it has consolidated well above that level

Most trends appear to be positive

There was a huge surge of buying yesterday after Morgan Stanley recommended going overweight on Indian equities. This came after several downbeat sessions. As a result, expiry should come with a fair amount of optimism attached. However, despite the Morgan Stanley advisory, the global sentiment is not all that strong. The minutes from the last meeting of the Federal Open Markets Committee in late April make it clear that the Fed is now prepared to raise rates. It may even do so at the next meeting in mid-June.Corporate data show a pattern of nominal increase in revenue with a significant fall in net profits. Banks are still taking a beating and liable to continue booking losses due to provisioning for non-performing assets. The macro-economic data is average with inflation rising, exports shrinking and industrial production almost flat. Hopes are riding mainly on the prospects of a super-normal monsoon.Although the Nifty has risen above its own 200-DMA, it is not decisively clear of th