Index Options- Stock Market Trading Tips Today by Ripples Advisory

Markets may continue to remain weak if Small cap breaks 5660 level which is its 5 months low. In Indian markets last week Nifty fell around 200 points from its high of 11398 to make a low of 11210 and finally closed at 11284, down by 1.18% from its previous close. From last three weeks, Nifty is unable to cross its previous week high, and closing below its previous week lows. For the coming week, 11400 levels may act as a hurdle for the Nifty which is previous week high, on lower side 11108 will be the level to watch which is its 2 month’s low level.

Cash benchmark Index Small cap also fell sharply by 169 points from its high of 5834 to make a low of 5665 and finally closed at 5708, down by 2.50% from its previous week close. If Small cap breaks 5660 level which is its 5 month low, then it can further slide to 5475 levels.

Sector Analysis:
The market continued to be volatile from last 2-3 weeks. On a weekly basis market ended in a negative note. Major sectors did not perform well. 3 minor sectors that outperformed last week are Airlines, Carbon and Media-TV & Newspaper by 8.17%, 7.15%, and 4.10% respectively.

Top 5 companies which outperformed this week are KRBL (FMCG- Food) by 25.66%, Phillips Carbon Black (Carbon) by15.69%, On mobile Global (Telecom) by 11.96%, Rain Industries (Carbon) by 11.07% and Redington India (Services) by 6.14%.

The US 10 Year T-Note is trading at 127.35. The Bond has crucial support at 117.42 made on 5th Nov 2018. The US Dollar Index is trading at 97.743.

Open Interest Analysis:
FII & PRO are the major players in the Derivatives segment and have an upper hand in the market and their position provides direction to the market. In the Aug month expiry, they have started with the position of (-95363) contracts in Index option (both FII & PRO combined) when Nifty spot was trading at 11252. As on last trading day, they have a net position of (-62447). Thus they have bought 32916 contracts in the current August expiry.

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