FPI: Any rally is unlikely to sustain without net FPI inflows

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Technical and derivatives analysts expect: nifty To move further towards the 16,000 level in the coming week. The Nifty rose 2.7% to 15,699.25 last week, outperforming most Asian peers.

Sudeep Shah

major, technical and derivative research,

security

What should investors/traders do?
investors One should buy dips, and collect quality till Nifty crosses the level of 15,450 on the downside shares Whereas traders should focus on stocks and Sectors Which is currently performing better than Nifty. Preferring quality largecaps and high-quality mid-caps while staying away from small-caps will be the key to avoid the current volatility. However, considering the fact that this may only be a short-covering rebound in the overall downtrend on the larger timeframe charts, traders should focus on managing overnight risks by hedged bets and suitable position sizes. To capture the upward momentum, we are suggesting a strategy where index traders can initiate a Nifty bull call spread by buying 15,700 call options and selling 15,900 call options with a premium cost of 90 and a potential reward of 110 is included. Traders can place a stop loss of 50 points of the premium.

Abhilash Pagaria

Head-Edelweiss Optional and Quantitative Research

What should investors/traders do?

Nifty is going to be under range consolidation and moving above 16,250 will be a long task unless foreign portfolio investors start participating. If the rally led by shortcovering takes the Nifty index to 16,250 without any FPI Positive inflow in cash segment, then one should look for making short positions with 16,370 as tight stop loss. Overall, we expect the market to remain highly stock-specific, with both high- and low-beta stocks from select pockets. According to our quant model, auto and fast-moving consumer goods may outperform the broader indices, while banking remains our favorite sell on the rally. Metal index is at key support. From the perspective of trading an open offer, and Ambuja can be deposited. Attractive merger arbitrage opportunities are available in buy and go short.

Chandani
derivatives analyst,

What should investors/traders do?

Investors can use these dips to spot good quality stocks from the auto, private banking, financial and consumption sectors, while traders can play with bounce-back moves with appropriate position sizes to deal with this volatile market. . One can go with bull call spread by buying 15,750 calls and selling 15,950 calls to play bounce towards 16,000 areas. Stock specific positive in M&M,

Motor, , , , , , , etc.

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