May Outlook | Stocks and Commodities

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April 26, 2014
Time: 9.15 pm

May Outlook:

1. In our April outlook, we estimated that Nifty should trade in the range of 6200 to 7100.
2. It has traded in that range.
3. All our recommendations, Nifty, Bank Nifty, Axis Bank and Auro Pharma, have given full profits.
4. May will be a very important month.
5. May 16 will be the D-Day.
6. Based on option prices, Nifty is likely to trade between 6100 and 7400.
7. This month option prices are the highest in Indian stock market history.
8. Markets will be choppy as more and more results will be keep coming.
9. Manufacturing PMI, Service PMI, Inflations data, IIP data all will be out before May 16.
10. Markets are expected to be choppy with positive bias in the first half.
11. Election outcome will decide the second half trend.

Recommendations:

1. Sell Nifty 6000 Put option and 7600 Call option.
2. Sell Bank Nifty 11000 Put option and 14700 Call option.
3. Sell Axis Bank 1300 Put option and 1720 Call option. (Choose higher strike, if opened)
4. Sell Auro Pharma 500 Put option and 680 Call option.