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Published on 7/12/2018 8:47:42 AM | Source: Religare Securities Ltd

We suggest preferring hedged options trades instead of futures until market stabilises - Religare Sec

Posted in Market Outlook| #Market Outlook #Religare Securities Ltd

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Nifty Outlook

Markets tanked today and lost over one and half percent, pressurised by weak global markets and anxiety ahead of key events. Sentiment was downbeat from the beginning, citing weak global markets ahead of the OPEC meet. Besides, rising anxiety among the participants ahead of assembly elections results and deterioration of rupee further dampened the mood.

Markets have been behaving extremely volatile for last one month and still there’s no sign of slowing down, thanks to the upcoming events viz. OPEC meet and assembly elections results. Such condition poses threat mainly to the traders as they end up losing on both sides. We suggest preferring hedged options trades instead of futures until market stabilises. Nifty has breached its crucial support at 10,700 and now 10,400 would act as cushion.

 

Stock In News

Info Edge announced that it has entered into an agreement to invest through its wholly-owned subsidiary, about Rs. 13.4 cr in Shop Kirana E Trading Private Ltd. Shopkirana is engaged in the business of developing B2B ecommerce platform for ordering, delivery, payments and related products/services among various stakeholders in grocery/FMCG supply chain.

Eveready Industries announced that it has executed an Agreement for Sale dated December 5, 2018 with Alwarpet Properties Private Limited (part of the Olympia Group, Chennai), for sale of its land situated in Chennai, Tamil Nadu, for a consideration of Rs. 100 cr.

Muthoot Finance reported disappointing set of numbers wherein net revenue de-grew by 0.7% YoY, however net profit growth stood at 8.5% YoY due to lower impairment charges during the quarter.

 

Religare Super Ideas

Bharat Petroleum Corporation Limited (BPCL)

Buy Bharat Petroleum Corporation Ltd 320 PE @ 10-12 Stoploss 8 Target 20 CMP 12.50

BPCL has been struggling around the resistance hurdle of moving averages for past three weeks on daily chart and now trading on the verge of fresh breakdown. We advise traders to initiate fresh shorts position through Put option.

 

Reliance Capital Limited (RELCAPITAL)

Buy Reliance Capital Ltd 210 PE @ 10-13 Stoploss 7 Target 24 CMP 14.45 

We’re reiterating our short recommendation on RELCAPITAL as it was not initiated in the previous sessions. However, we’ve changed the strike of Put option, considering the prevailing scenario. We advise creating fresh shorts as per the given range.

 

Derivative Ideas

CHOLAFIN added around 9% in open interest as short buildup was seen in it in previous session. Current chart pattern also indicates further dip in its price. We suggest selling the stock .

Strategy:- Sell Cholafin Dec @1230-1232 sloss at 1248, target 1201.

 

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