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With the ongoing buzz around the Lok Sabha election results, markets are still witnessing strong volatility. India vix stood above 21 as of May 24.However, the week ended in green, with Nifty and Sensex only rising each day while closing near their all-time high zones. With a progressive movement and the indices constantly achieving new highs, should there be a concern among investors and traders regarding a pullback?Is this a time to put one’s cautious foot forward in the markets?Sudeep Shah of SBI Securities interacted with ET Markets regarding the current outlook on Nifty and Bank Nifty. Following are the edited excerpts from his chat:In a truncated week of 4 trading sessions, nifty closed in green on all the days, closing the week also near its all-time high. Is it a sign that investors need to now remain cautious as the index might witness a pullback in the week to come?Nifty, in the past week, has surged above the psychological level of 23,000 mark and registered a fresh all-time high post a breakout of the horizontal trendline, which was formed by connecting recent swing highs. As the index is trading at an all-time high, all the moving averages and momentum-based setups indicate strong bullish momentum in the index. Even the momentum indicators and oscillators indicate the possibility of the current momentum sustaining during the coming week.Talking about market breadth, the 20-day SMA, which is a key indicator used by traders to assess short-term trends, shows significant improvement. Currently, 43 out of the Nifty 50 stocks are trading above their 20-day SMA, a substantial increase from just 14 stocks nearly two weeks ago. These developments clearly signal a notable strengthening of market sentiment in recent trading sessions, suggesting continued optimism in the near term. Going ahead, the zone of 22,750-22,780 will act as important support for the index in the short term & as long as the index is trading above this support zone, it is likely to test the level of 23,150, followed by 23,350 in the short term.What is the trading outlook in current markets when many stocks as well as indices are at their all-time highs?Fear of a market correction has often kept traders on the sidelines, causing them to miss out on significant opportunities. There has never been a situation where trading is risk-free. It’s better to take the trade with proper risk management and hedging strategies rather than watch the markets surge and experience increased FOMO (fear of missing out).Most importantly, we urge the traders to focus on quality names for short-term trading or from a momentum investing perspective given the proximity to the most important event - General election outcome. In such times, are premium options too expensive?Currently, the ATM implied volatility (IV) of options is trading at 13.5. From March to May, the IV of ATM options has remained relatively range-bound between 11 and 16. However, for the 6th June expiry, the IV of ATM options has spiked to 24, clearly indicating an increase in premiums. With the general election outcome scheduled for 4th June, option sellers are charging higher prices to compensate for the increased risk associated with option selling around a significant event.Generally, a cool-off in the premiums is witnessed once the event is out of the way. And can one go for OTM strike prices for trading when markets are moving northward?Trading in out-of-the-money (OTM) options is akin to buying a lottery ticket and relying on a favorable outcome. For instance, consider the Nifty 24000CE option expiring on 6th June, which possesses a delta of 0.19. This suggests a mere 19% chance of the index closing above 24,000 by 6th June. This probability is still inflated to 19% primarily due to the imminent large event (election outcome on 4th June); otherwise, it would likely be 10% or lower.Opting for at-the-money (ATM) options is preferable despite slightly higher premiums, as the likelihood of a favorable outcome is significantly increased compared to OTM options. For traders prioritizing safety, spread strategies offer a viable alternative, leveraging the benefits of margin utilization. Trading vs. hedging? What should be the prime focus in these volatile times?Despite market volatility, major indices are currently at all-time highs, leading to profits for both traders and investors. Traders have capitalized on significant opportunities arising from sharp market swings, while investors who wisely selected stocks have amassed substantial wealth in the ongoing rally.For investors who wish to continue riding the tide, hedging a portion of their portfolio with out-of-the-money (OTM) options is advisable. This strategy safeguards their capital against potential adverse outcomes from the upcoming general elections, which the markets may not favorably respond to.What does the PCR data indicate for both indices?Nifty PCR currently at 1 level indicates support on dips around the 22,800 zone. Bank Nifty, which has witnessed strong momentum in the past few days, has seen an improvement in PCR above 1.1 levels. This implies that the Banking Index can get support at lower levels around the 48,400-48,500 zone.Should call writers be worried in these markets?In any market scenario, naked call option writers should be cautious, especially in a strong uptrend like the current one. Even in situations where markets are overbought, the positive momentum can persist for extended periods, potentially catching even the most seasoned bears off guard. Typically, seasoned option writers operate akin to a casino, establishing multiple positions across various indices and employ extensive hedging strategies to mitigate the unlimited risk of Naked Option selling.Can you please comment your views on the FII’s confidence in Bank Nifty when HDFC Bank, its largest contributor, has now well recovered from its Q3 results’ damage?The Bank Nifty has been the weakest sectoral index year to date, largely due to HDFC Bank's underperformance. Following its merger with HDFC, the stock has notably lagged behind the broader market rally. Although we remain cautious about its trajectory, the silver lining lies in its comparatively lower valuations, which may help mitigate potential downsides, particularly in light of the strong rally in other prominent counters.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

State-owned GAIL (India) Ltd's maiden green hydrogen plant at Vijaipur in Madhya Pradesh has been commissioned, making a major step for the nation's largest natural gas transmission and distribution firm's foray into new and alternate energy, the company said. The 10-megawatt proton exchange membrane electrolyser for the green-hydrogen producing unit at the Vijaipur complex has been imported from Canada. The plant will produce about 4.3 tonnes of green hydrogen per day, with a purity of about 99.999 per cent by volume. It uses electricity produced from renewable sources such as the sun's solar energy, to split water to produce green hydrogen. In a statement, GAIL said the plant was in line with the National Green Hydrogen mission that has set out a goal of 5 million tons of annual green hydrogen production capacity for the country by 2030. India is putting increased focus on hydrogen as an alternative fuel source to lower its carbon emissions, while also meeting its growing energy needs. "Initially the hydrogen produced from this unit shall be used as a fuel along with natural gas for captive purpose in the various processes and equipment running in the existing plant at Vijaipur," it said. "Further, this hydrogen is planned to be dispensed to retail customers in the nearby geographies, transported through high pressure cascades." Besides sourcing renewable power through open access, GAIL is also setting up around 20 MW Solar power plants at Vijaipur (both ground mounted and floating) to meet the requirement of green power for the 10 MW PEM Electrolyzer. While GAIL is blending hydrogen with natural gas on an experimental basis in Indore in its CGD (city gas distribution) network to test its success, it aims to escalate blending ratios with after necessary approvals based on the test results. Current regulations provide for blending only 5 per cent hydrogen with natural gas. GAIL is conducting joint studies with Engineers India Limited and IIT Kanpur to further blend hydrogen with natural gas.

As the fourth quarter earnings are about to end, inflows into the primary market are expected to continue as several companies prepare to launch their public offerings this week. In the SME segment, Aimtron Electronics, Beacon Trusteeship, Vilas Transcore, Ztech India, and TBI Corn will debut this week. Meanwhile, the mainboard IPO, Awfis Space Solutions will list on the exchanges this week.SME IPOsAimtron ElectronicsThe initial public offer (IPO) of Aimtron Electronics will open for subscription on May 30 and close on June 3. The IPO, which is priced at Rs 153-161 per share, is completely a fresh equity issue worth Rs 87.02 crore. Hem Securities is the book-running lead manager of the Aimtron Electronics IPO, while Link Intime India is the registrar for the issue.Beacon TrusteeshipLeading debenture trustee Beacon Trusteeship IPO is a book-built issue of Rs 32.52 crores and the issue is a combination of a fresh issue of 38.72 lakh shares aggregating to Rs 23.23 crores and offer for sale of 15.48 lakh shares aggregating to Rs 9.29 crore. The IPO of Beacon Trusteeship will open for subscription on May 28 and close on May 30.The company has fixed a price band of Rs 57-60 per share for the issue, with a lot size of 2,000 equity shares.Those selling shares in the OFS are Prasana Analytics Private Limited and Kaustubh Kiran Kulkarni.From the IPO proceeds, the Mumbai-headquartered company plans to allocate Rs 7 crore to build up technology infrastructure for its existing business, Rs 6.99 crore to invest in its subsidiary, Beacon Investor Holdings, to commence services as a depository participant, registrar, and share transfer agent, and Rs 3.25 crore to purchase new office premises in Borivali, Mumbai. Additionally, a portion of the proceeds will be used for general corporate expenses.Vilas TranscoreVilas Transcore IPO will open for subscription on May 27, 2024, and close on May 29, 2024. The SME IPO is a book-built issue of Rs 95.26 crores and is entirely a fresh issue of 64.8 lakh shares.The SME IPO price band is set at Rs 139-147 per share. Hem Securities is the book-running lead manager of the IPO, while Bigshare Services is the registrar for the issue. The minimum lot size for an application is 1000 Shares. The minimum amount of investment required by retail investors is Rs147,000.Ztech IndiaZtech India IPO will open for subscription on May 29, 2024, and close on May 31, 2024. The SME IPO is a book-built issue of Rs 37.3 crore, comprising an entirely fresh issue of 33.91 lakh shares.The price band has been fixed at Rs 104-110 per share. Narnolia Financial Services is the book-running lead manager for the IPO, while Maashitla Securities is the registrar for the issue.TBI CornTBI Corn IPO will open for subscription on May 31, 2024, and close on June 4, 2024. The book-built issue is valued at Rs 44.94 crore and comprises an entirely fresh issue of 47.81 lakh shares.The SME IPO price band is set at Rs 90-94 per share. Swastika Investmart and Ekadrisht Capital are the book-running lead managers for the IPO, while Kfin Technologies is the registrar for the issue.Mainboard IPOAwfis Space SolutionsAwfis Space Solutions IPO bidding opened for subscription on May 22, 2024, and will close on May 27, 2024. The IPO is a book-built issue valued at Rs 598.93 crores. It includes a fresh issue of 0.33 crore shares totaling Rs 128 crore, alongside an offer for the sale of 1.23 crore shares amounting to Rs 470.93 crores.As of day three, the initial public offering of Awfis Space Solutions has been subscribed 11.41 times, driven by strong demand from retail and non-institutional investors.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

The historic trial of Donald Trump enters its final act Tuesday, with closing arguments to the jury who must then decide whether to hand down the first ever criminal conviction of a former US president.Less than six months before American voters choose whether to return Trump to the White House, the stakes riding on the verdict are hard to overstate -- for the 77-year-old personally, but also for the country as a whole.Trump is accused of falsifying business records to buy the silence of porn star Stormy Daniels about a 2006 sexual encounter between them that could have damaged his 2016 presidential bid.If convicted, he faces up to four years in prison on each of 34 counts, but legal experts say that as a first-time offender he is unlikely to get jail time.Crucially, a conviction would not bar Trump from appearing on the ballot in November as the Republican presidential challenger to Democrat Joe Biden.It has taken nearly five weeks, the testimony of more than 20 witnesses and a few courtroom fireworks to reach closing arguments -- the last chance for the prosecution and defense to impress their case on the anonymous, 12-member jury.As expected, Trump chose not to testify in his defense -- a move that would have exposed him to unnecessary legal jeopardy and forensic cross-examination.For a man who has always prided himself on being in charge and in control, the role of silent, passive defendant did not come easily.At times it has been downright excruciating, especially when Trump was forced to sit and listen while Daniels recounted their alleged encounter in sometimes graphic detail.Speaking to reporters before and after each day in court, Trump launched regular tirades against Judge Juan Merchan -- calling him "corrupt" and a "tyrant" -- and condemned the whole trial as "election interference" by Democrats intent on keeping him off the campaign trail.The politics of the case were in full view in the final days when a coterie of leading Republicans -- including several vice-presidential hopefuls -- came to the court and stood behind Trump in a gesture of support as he spoke to the press.In all, he was cited 10 times for contempt of court and fined $10,000 by Merchan for failing to heed a gag order prohibiting him from publicly attacking witnesses, the jury, court staff or their relatives.The judge has said he expects closing arguments to take up all of Tuesday.He will then give his final instructions to the jury, who will likely begin their deliberations on Wednesday.To return a guilty or not guilty verdict requires unanimity. Just one holdout means a hung jury and a mistrial.- Other cases -Aside from Daniels, the key prosecution witness was Michael Cohen, Trump's former "fixer" turned bitter foe who arranged the $130,000 hush money payment.Walking jurors through the reasoning behind the payments, Cohen said they were made "to ensure that the story would not come out, would not affect Mr Trump's chances of becoming president of the United States."Trump's defense team devoted most of their questioning trying to discredit Cohen, recalling that he had admitted lying to Congress and spent time in prison for tax fraud.The defense called only two witnesses of their own before resting.In addition to the New York case, Trump has been indicted in Washington and Georgia on charges of conspiring to overturn the results of the 2020 election.He also faces charges in Florida of allegedly mishandling classified documents after leaving the White House.None of those trials are expected to take place before the November election.