F&O Tracker: 8450-8500 to be important support for current expiry
The result season has kicked in and Infosys has surprised the markets positively. The stock was up close to 12 per cent after the results were declared.
Updated:
By Hiren Shah, Edelweiss Financial
The result season has kicked in and Infosys has surprised the markets positively. The stock was up close to 12 per cent after the results were declared. The Nifty has moved higher in the last one week but is facing some resistance near the 8650-8700 levels.The current Nifty structure is indicating that 8450-8500 levels would be a very important support for the markets for the current expiry. The markets have also been helped by positive inflows from FIIs. In the last 5 days FIIs have purchased a total of close to Rs 5700 crore, both in cash and futures.
On the global side positive news from Greece and the Iran nuclear deal is very important for the markets. With the Iran nuclear deal going through, crude oil is expected to remain under pressure which is a huge positive for India.Another important development on the global side is the major weakness that is seen in gold prices. Currently, gold prices are trading close to their 4-year lows.There are reports suggesting that the US Fed would start the reversal of the interest rate cycle soon, leading to a strengthening of the dollar and putting pressure on commodities.
On the options side traders can look to do a bull call spread in HeroMoto. The auto sector is consistently outperforming the Nifty Index and we continue to believe that HeroMoto would be a good stock to go long. Traders can buy the 2700 CE and sell the 2750 CE in a net spread of 15. Bank of India looks weak on the charts and traders can look to go short on the stock.
The result season has kicked in and Infosys has surprised the markets positively. The stock was up close to 12 per cent after the results were declared. The Nifty has moved higher in the last one week but is facing some resistance near the 8650-8700 levels.The current Nifty structure is indicating that 8450-8500 levels would be a very important support for the markets for the current expiry. The markets have also been helped by positive inflows from FIIs. In the last 5 days FIIs have purchased a total of close to Rs 5700 crore, both in cash and futures.
On the global side positive news from Greece and the Iran nuclear deal is very important for the markets. With the Iran nuclear deal going through, crude oil is expected to remain under pressure which is a huge positive for India.Another important development on the global side is the major weakness that is seen in gold prices. Currently, gold prices are trading close to their 4-year lows.There are reports suggesting that the US Fed would start the reversal of the interest rate cycle soon, leading to a strengthening of the dollar and putting pressure on commodities.
On the options side traders can look to do a bull call spread in HeroMoto. The auto sector is consistently outperforming the Nifty Index and we continue to believe that HeroMoto would be a good stock to go long. Traders can buy the 2700 CE and sell the 2750 CE in a net spread of 15. Bank of India looks weak on the charts and traders can look to go short on the stock.
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