"BUY MANAPPURAM 120 CALL @ 2.6-2.7"
Multiple
headwinds led to market volatility for the day. Concerns of political crisis
developing in J&K and no further cues on exclusion of surcharge to FPI’s
added more volatility in the market. Kashmir,
yuan send Sensex tumbling 418 pts, Nifty ends a tad above 11,850. At day's
lows, Sensex fell over 700 points to 36416 while Nifty tumbled below 10800,
before ending off lows.
We expect
volatility to remain high in the near term and maintain our cautious stance.
Given the comforting inflation data and declining growth, expectations are rife
for a fourth consecutive rate cut of 25 bps by RBI on August 7. However, the
commentary on growth and inflation would be more important factor in deciding
the course of the markets. Further, turmoil in Kashmir may induce volatility.
On the global front, escalating trade tensions between the US and China will
keep participants on the edge and cause volatility in oil prices as well as
currency. Nifty has support near the 10750 -10700 zone and resistance near
10950 -11000. To show any strength, the index needs to sustain above 11000,
else every rise will be used for profit booking or making fresh shorts.
Resistance: 10950, 11000
Support: 10750, 11700
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