November Outlook | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

November Outlook:

1. In October we had two big events, one RBI policy and second FOMC meeting.
2. In November we do not have any event risks.
3. Also November is a 4 week month.
4. Also markets are trading at all time high.
5. Volatility is low.
6. All these point to a range bound markets in November.
7. Nifty is likely to trade between 5800 and 6600 in November.
8. India Manufacturing PMI came at 49.6 which is actually not good.
9. But core sector growth has come at 8% which is a one year high.
10. On 5th of November, Services PMI will be declared.
11. On 8th November, US unemployment report will due.
12. On 12th November, IIP data will be declared which is expected to be good.
13. Close to the end of the expiry, election uncertainties will be factored into the markets.
14. A small correction of 100 to 200 pints in Nifty may happen at any time.
15. But that will be good buying opportunity.

Recommendation:

1. Sell Nifty 5800 Put option and 6700 Call option which closed at Rs 11.10 and Rs 10.50.
2. Sell December expiry 5600 Put option and 6900 Call option which closed at Rs 22 and Rs 19.75.
3. Sell Bank Nifty 10000 Put option and 13000 Call option which closed at Rs 24.45 and Rs 30.