Nifty to hit 10,000 next month? 12 events, 4 stocks to watch out in March F&O series
The March series of derivatives contracts may have kicked off on a positive note, experts anticipate Nifty50 to slide towards 10,000 as a huge sell-off by foreign institutional investors (FIIs) in the gone by series has passed off a negative sentiment to the fresh series.
"FIIs shorted decent amount of index futures in February. As a result, their ‘Long Short Ratio’ in index futures has decreased from 79.80 per cent (January expiry) to 49.40 per cent (February expiry). TheY cumulatively sold equities worth Rs 14,306 crore, which doesn’t bode well for the bulls," said Jay Purohit, technical & derivatives analyst at Centrum Broking.
Considering overall derivative activity, Purohit expects Nifty to correct towards 10,000-mark in March.
"Any bounce towards 10,700-10,750 should be used to exit long positions. Aggressive traders can even initiate fresh shorts around the mentioned zone," he said.
Brokerage Edelweiss Securities also held a cautious view on the index for March expiry.
"On the upside, 10,600-10,650 will serve as a resistance, while on the downside psychological level of 10,000 can’t be ruled out," said Edelweiss in its rollover report.
"Any breach of 10,000 mark will pave way for an immediate dip of further 100-150 points. Maximum open interest for March series in Nifty options is at 10,000 PE with ~3.2mn shares followed by 10700 CE & 11000 CE with ~2.5mn and ~2.6mn shares respectively," the brokerage added.
Key stocks to track
1) Bombay Dyeing (target: Rs 320)
- Earnings look set to improve
- Improved presence in realty business
- The stock 20 per cent below its high levels
2) Sun Pharma (target: Rs 590)
- Outcome of USFDA inspection of Halol unit expected today
- Halol unit has a big share in Sun Pharma's overall business
3) Vascon Engineers (target: Rs 45)
- Profits grew 1,100 per cent YoY in Q3
- Margins improved on consistent fall in interest cost
4) Venky's (India) (target: 3,050-3,100)
Target already achieved; stock hit a high of Rs 3,245 today
- Chicken, eggs prices surged
- Strong operating margins
- Consistent improvement in earnings
Key events to track