Outlook for July | Stocks and Commodities

July 3, 2017,
Time: 8.15 am

Outlook for July:

1. June month was a consolidation month not only for India, for all the world markets.
2. Most world markets including India, closed in negative in June, after closing positive for the last many months.
3. For most part of the series, Nifty was trading between 9600 and 9700.
4. In the last week, Nifty fell closed around 9500 on expiry.
5. Since Nifty has been in uptrend from 7900 all the way to 9700, falling 200 points from the peak is nothing to worry about.
6. DIIs are holding lot of money and they are ready to buy at the lower levels.
7. So significant fall in July is also ruled out.
8. Last Friday when Nifty fell towards 9450, DIIs have bought for nearly rs 1200 crores.
9. As Real Estate and Gold have been giving negative returns, Bank FD rates keep going down, lot of money is flowing to Mutual Funds.
10. Nifty is likely to trade between 9300 and 9800 in July.
11. So one can sell Nifty 9300 Put and 9800 Call.
12. If Nifty falls below 9450, then sell more Calls at 9700 and 9800.
13. If Nifty breaks 9720 on the higher side then sell more Puts at 9400 and 9300.
14. This strategy should work for July.
15. We have 19 more trading sessions in July.
16. We have following things to watch.

• Manufacturing PMI data
• Services PMI data
• Core Sector Growth.
• IIP data.
• CPI Inflation data
• WPI Inflation data.
• Fed Minutes.
• US jobs data.
• Monthly Auto and Cement sales data.
• Infosys, TCS results.
• IndusInd Bank and some other Private Sector Banks results.
• May be some other index heavyweights like Reliance results.