Should we buy the dip in IT stocks? Markets Week ahead - October 1st week

The Previous week FIIs were net sellers and DIIs were net buyers. DIIs have bought for more than 4300 crores and FIIs have sold around 6000 crores in the cash market.

Nifty is above 17,500 and SGX nifty is indicating a gap up opening. India VIX is above 15 so we must be cautious. One good thing is that it fell on Friday. 

There are few data that will be out in a few days. We must look into Manufacturing and services PMI data, Auto sales data, RBI monetary policy and U.S. jobs data. 

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The second-quarter results will be out soon and most of the companies are expected to declare good results. First, the IT companies will be declaring their results and then the banks and other companies. Accenture result was out and it was also good so, the IT companies are expected to declare good results. The IT stocks have fallen from their recent highs so it might be a good chance to buy. 

 

In Nifty 18,000 has the highest open interest on the call side and on the put side, 17,500 has the highest open interest in the October month expiry. In the current week expiry, the 17,700; 18,000 calls and 17,500; 17,000 puts are having huge open interests.

In Nifty Bank, 38,000 has the highest open interest on the call side and on the put side, 36,000 has the highest open interest in the October month expiry. In the current week expiry, the highest open interest is at 38,000 on the call side and 37,000 on the put side.  

Global markets are mixed, U.S. markets closed in green on Friday. The European and Asian markets are down. SGX Nifty is indicating a gap-up opening of around 100 points. Currently, the PCR of Nifty is 1.42 (28 Oct expiry).

Finally to conclude, 

• This week Nifty may trade between 17,450 and 18,000.
• Must look into FII activity and the mentioned important data.
• India VIX movement must be noted.
• Must look into the Q2 results.

"Have a profitable week"

You can check the FII long and short data, FII DII net sales, open interest data, Global markets data, on the "Quick Bites" page. Click here and check now. 

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