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Volatility is expected to remain high this week so it is advisable for investors to stick to quality large-cap stocks and consider adding on dips to navigate this period of increased volatility, Dr. Ravi Singh, Senior Vice President- Retail Research at Religare Broking tells ETMarkets. This analyst spells-out strategy in previous week’s major movers viz. Info Edge (India), IPCA Laboratories, Avenue Marts (DMart) and three more stocks. Here’s what he recommends:Edited excerpts:Exit polls are out now so what do you make of them and what are your hopes from markets till the counting concludes?All the exit polls indicate that the BJP will retain power, which is expected to lead to a positive reaction in the markets. However, given the election-related uncertainty, we may see a volatile session on Monday as the market reacts to the exit poll numbers and anticipates the final outcomes. Investors should be prepared for fluctuations but can remain optimistic about a potential rally if the final results align with the exit polls.It was a tough week for Indian markets with election related jitters coupled with Fed’s Kashkari’s hawkish tone where he said that possibility of further rate hikes cannot be ruled out. How do you see this development for Indian and global markets?Yes, it seems there will be some time before we see rate cuts by the Fed, as Kashkari believes the Fed will eventually reach its 2% inflation target but stresses the importance of patience. I feel that Indian markets will not be significantly impacted by this, as they will be more focused on the election outcomes and the upcoming budget. The global markets might remain cautious due to the potential for further rate hikes, but the local sentiment in India will likely be driven by domestic factors.Do you expect volatility to go up this week and if yes how should one trade?Yes, volatility is expected to remain high for the first half of the week. On Monday, the market will react to the exit poll results, and on Tuesday, it will respond to the final election outcomes. It is advisable for investors to stick to quality large-cap stocks and consider adding on dips to navigate this period of increased volatility. This strategy helps manage risk while taking advantage of potential buying opportunities in fundamentally strong companies.What will be the key levels for Nifty and Bank Nifty for this week?The key levels to watch for Nifty and Bank Nifty this week are 23,000 and 50,000, respectively. A break above these levels could trigger a significant rally in both indices, leading to potentially substantial gains. Investors should monitor these levels closely, as they represent crucial resistance points that, if surpassed, could signal a strong upward momentum in the market. Another major event will be the RBI MPC so what are your expectations and how should one trade in rate sensitive sectors?It is more likely that the RBI will keep interest rates unchanged. In rate-sensitive sectors such as banking, real estate, and automobiles, investors should remain cautious but look for opportunities in fundamentally strong stocks. Maintaining a balanced portfolio with exposure to quality companies in these sectors can help mitigate risks associated with potential market fluctuations following the RBI's decision.The top gainers this week were Finolex Cables, Emami and Glenmark Pharma while Ipca Lab, Naukri and DMart have been among major laggards. What should investors do with them?Investors should continue holding Finolex Cables, Emami, and Glenmark Pharma, as the fundamentals of these companies are strong. For those with short-term positions, it's advisable to set stop losses to manage risk: 1100 for Ipca Lab, 5550 for Naukri, and 4200 for DMart. For the gainers, such as Finolex Cables, Emami, and Glenmark Pharma, investors can trail their stop losses with each upward move in the stock to protect gains while allowing for potential further appreciation.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

India saw nearly 25,000 cases of suspected heat stroke and 56 people lost their lives after several heat wave days across the country from March-May, local media reported, citing government data. May has been a particularly bad month for the region, with temperature in capital Delhi and nearby state of Rajasthan touching 50 degrees Celsius (122 degrees Fahrenheit). In a contrast, parts of eastern India have been reeling under the impact of cyclone Remal. Heavy rain in the north eastern state of Assam has killed 14 people since Tuesday. In the island nation of Sri Lanka, at least 15 people have died due to flooding and landslides after heavy monsoon rain lashed the region, the country's Disaster Management Centre (DMC) said on Sunday. A confluence of factors has led to a very hot summer in South Asia, a trend scientists say has been worsened by human-driven climate change. At least 33 people, including election officials on duty in India's just-concluded general election, died of suspected heatstroke in the states of Uttar Pradesh and Bihar in the north, and Odisha in the east on Friday. Data from the National Centre of Disease Control (NCDC)showed that the situation was worst in May, with 46 heat-related deaths and 19,189 suspected heat stroke cases, news website The Print reported. Including suspected cases, the total number of deaths in India could be much higher at 80, newspaper The Hindu reported. Over 5,000 cases of heatstroke were detected in the central state of Madhya Pradesh alone. The weather office has predicted that heat wave conditions will be less severe till Wednesday and an early arrival of monsoon in the southern state of Kerala last week is expected to bring more relief. (Reporting by Tanvi Mehta, additional reporting by Tora Agarwala in Guwahati; Editing by Michael Perry)

With a surge in Nifty option premium for 6th June contract, a directional bet is fraught with high risk and therefore traders can deploy Iron Butterfly strategy, says Anand James, Chief Market Strategist, Geojit Financial Services."At the centre of the Iron Butterfly is a short straddle with a short PE and short CE as the two legs which stands to benefit from fall in premia, if history repeats with VIX. The other two legs are a long PE and a long CE on either side, which serves as a hedge to the straddle, should there be wild swings," he says.Edited excerpts:What is the kind of inference that you can draw from the rollovers data in May series?Given the long build for the event, traders have either got adequately sensitised towards the risk and reward of the electoral outcome, or are just tempted to take a bet in the much awaited event. This explains the increase in rolls, which is in contrast to the usual risk aversion ahead of an event that ends up in traders avoiding positions for a while ahead of the event especially when it falls shortly after expiry. But we did see interesting inference in how FIIs have added on to short positions in index futures, which constitutes 87% of the total FII positions in index futures. FIIs started the new series on 31st May having reduced the longs in index futures to just about 20% of what they held on the expiry eve, while shorts were increased by 32%. This is a heavy bearish bet, but if it goes wrong, it can also give legs to massive rallies.Do you think 'Abki baar 24,000' is possible this week if BJP wins over 320 seats?Possible, but not probable. While, Nifty straddles are pricing in about a 500 point range on either side, giving us just a 23000-22000 band, VIX which has been steadily playing near 24 last week, is pointing towards the potential for a 7.1% rise or fall this month, which pips the upper range at 24100. But, historically, there is enough evidence to show that any build up in prices in anticipation of an event, fizzles out almost immediately on maturity of the event. Hence, while 24k mount is a theoretical possibility, we feel that the probability of attaining it is very low. Also, the inflation and rate cut conundrum which had been pushed to the back burner lately, will soon take centre picture.How should F&O traders position themselves for Monday's and Tuesday's trade as exit polls and actual results will heavily influence the market on both days.The build up to the election results have inflated the 6th June contract’s option premia multi fold, and given the fact a fall in VIX post event is usually seen, a directional bet is fraught with high risk. Towards this end, our preference is to employ an Iron Butterfly option strategy to benefit from swollen premia ahead of exit polls and the expected fall in VIX as well as premia once the event has transpired, as evidenced in 2019 as well as 2014. At the centre of the Iron Butterfly is a short straddle with a short PE and short CE as the two legs which stands to benefit from fall in premia, if history repeats with VIX. The other two legs are a long PE and a long CE on either side, which serves as a hedge to the straddle, should there be wild swings.What does the chart look like for the PSU index? Do you see a high risk-high reward trade in PSU stocks ahead of the election outcome?The Nifty PSE index corrected close to 3% this week led by HAL, NTPC, ONGC, Powergrid and IOC. Keeping apart the energy stocks within the PSE index, Power financing companies remained strong. LICI, NTPC, Powergrid, BEL and IOC have shown early signs of a reversal towards the end of the week which is evident in the Nifty PSE Index chart which has seen a Pinbar Doji candle formation. If history is to repeat, the present construct is similar to the situation seen in early May where we saw ~11% upside in the following few days. Expect LICI, HAL, BEL, NHPC, PFC and Recltd to lead in such a scenario. Presently, 45% of stocks are having 14D RSI below 50, while 55% of PSE stocks are trading above 20DMA.Give us you top ideas for the election weekNCC (CMP – 287)View – BuyTargets - 308 - 330Stoploss - 267The stock has been making higher tops and higher bottoms since 2020 and has broken above the previous all-time high of 237 (made in April 2024) this month and a narrowing wedge breakout in the weekly and monthly time frame. The undercurrent looks positive with initial upside objective of 308 and thereafter 330 in the next few weeks. All longs may be protected with stoploss placed below 267 levels.ORIENTELEC (CMP – 228)View – BuyTargets - 240 - 254Stoploss - 217The stock has been making higher tops and higher bottoms since February and has broken the Supertrend level of 231 in the weekly timeframe.

US-based Zeda Holdings, which uses 3D printing to manufacture orthopaedic implants, is planning to raise up to $200 million in capital for its India foray, its chief executive officer, Shri Shetty, told ET.The company is exploring options in India, including tie-ups with pan-India distributors, joint ventures in which the partner will co-invest, and acquisition of local medical technology companies, according to Shetty.A significant part of the proposed fund raise will be used for setting up multiple small (10,000-20,000 sq ft) yet fully automated facilities in India to do metal 3D printing using advanced semiconductor device fabrication process to manufacture orthopaedic implants targeting trauma and spine surgeries.On its India entry strategy, Zeda is being advised by Wodehouse Capital Advisors."We're looking for partners and local capital," Shetty said. "We will use part of the capital for buying some local entities, part of it (will be) used for creating a local team, and the remaining half capital is used for building a factory, doing a joint venture."Zeda has 52 USFDA-approved products implanted in more than 32,000 patients. The company offers more than 30 trauma devices and instruments. It has over 150,000 sq ft of manufacturing footprint across the US.Shetty said Zeda's focus in India will be on trauma implants, which account for about $3 billion of India's $8-billion orthopaedic implants market."The USFDA-approved implants are expensive. The locally used ones, which were relatively cheaper, are imported from China, Czech Republic, Pakistan and other countries," Shetty said. "We can bring the cost down due to local factories, which means that we can sell USFDA implants at very comparable prices to local implants." Shetty said that since the company's products are already approved in the US, and registered in Singapore, he expects it would take 6-8 months to register them in India.