Wall Street rallied on Friday as news of U.S. getting on consensus on debt deal. Monday U.S. market will remain close along with European market.
SGX Nifty indicate almost 1% higher on news of U.S. debt deal reached through. Banknifty will open at fresh life-time high. Mid-cap & Small-cap index will be at life-time high.
Corporate earnings season is near to end, stocks in focus will be IT & Banks. Some profit booking expected after gap-up opening.
F&O data: FII are now long on index futures by 31909 contracts. Nifty PCR @ 1.37 Vs 1.11 previous. Banknifty PCR @ 1.18 Vs 0.90 previous are very near to overbought zone.
Approach on Indices: Nifty opening around 18650 & Banknifty opening around 44300 can be considered as fresh breakout and Friday’s closing will act as support level for near term.
Market View: Rally on back of news of U.S. debt deal is a relief rally according to us and we expect profit booking on gap-up opening over next 2 days, as US & European market will be closed on Monday. We would find opportunity and prefer stock rotation which has underperformed so far and has potential.
SGX Nifty @ 18707 up 159 points at 8:45 AM