Local markets have rallied 7.2% YTD with Narendra Modi widely projected to win. There is increasing optimism that the BJP led govt will help spur investment and boost growth. FIIs have pumped in $ 5 bn on expectations of stable reform oriented govt taking power at centre. 5 out of 7 sensex companies that have come with results till date have either beaten or matched analyst estimates. Benchmark trades @ 14.3X FY15 E earnings which are reasonable. We expect market to consolidate in a broad zone of 6650-7000 with high degree of gyration till the general election results come later this month.
Watch Out for :
1. Italy Consumer Confidence
2. US pending home sales
Nifty future is swinging sideways in early morning trades on SGX.
Nifty View :
Last week Nifty held 6730 zone & moved upto 6870 as expected although a bout of profit booking from higher levels on Friday led the Index to reverse the entire gains & close flat on a weekly basis. This is the second week in a row, Nifty has closed forming a Doji. With 6800 & 6500 PE having maximum OI of 20 Lakhs & 25 lakhs resp. & along with 6800-7000 Call having an OI of 20 & 28 Lakhs respectively, 6840-6860 is an key resistance in the next few sessions.
Till Nifty does not cross 6860, it can correct upto 6710-6650. Only on cross-over & sustenance above 6860, it would move upto 6970-7000. Weekly Range could be 6650-7000. Put writing is seen @ 6600/6700 and call writing @ 7000
Corporate Action :
Q4 Results ……Godrej Consumer, HUL, Idea, Shree Cement
Short term Trading Idea
Lupin, KVB, Tata Coffee, Bharti Airtel, LnT, SI Bank, Apollo Hosp, Tata Comm
Investment Call :
ICICI Bank, Sun Pharma, Oberoi Reality, Motherson Sumi.