The market is likely to consolidate before it starts moving higher. Investors with a long-term horizon should try and accumulate quality stocks on every dip.
It was a day of consolidation for D-Street as investors booked profits after 300-point rally on D-Street witnessed in the last three trading sessions.
Most global brokerages such as CLSA, BofA-ML, Credit Suisse maintained neutral to positive outlook on TCS, but said it may see some near-term pressure.
Put writing was seen at strike prices 8,200 (5.3 lakh contracts added), 8,300 (15.14 lakh contracts added) and 8,400 (9.7 lakh contracts added).
The Nifty50 was trading above its crucial support level of 8,400 supported by gains in IT, realty, oil & gas, metal, consumer durable, capital goods, and banking stocks.
The IT firm has lowered its revenue guidance. The guidance for FY17 is now at 8.4-8.8 per cent in constant currency (CC) terms against 8-9 per cent earlier.
Infosys is likely to report 1.35 per cent quarter-on-quarter (QoQ) fall in the net profit to Rs 3,557.20 crore for the quarter ended December 31.
Power stocks led the rally on D-Street on Thursday as Nifty50 closed above its crucial resistance level of 8,400. The S&P BSE Sensex closed 106 points higher at 27,247.
During Q3, growth was led by energy and utilities segment (up 5.8% QoQ), hi-tech (up 2.6% QoQ), BFSI (up 2.1% QoQ), manufacturing (up 2.1% QoQ).
The highest Put base is placed at the strike price 8,000 with 69 lakh contracts, while the highest Call base is placed at the strike price 8,400 with 51 lakh contracts.
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