Market Outlook 14 Mar 2017

Markets Ready For Big Move; A Rally Above 8980 Could Easily Take Nifty To Life Time New Highs; Buy On Dips And Avoid Short Selling; Existing Long Positions Should Be Protected With Tight Stop Loss.

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NIFTY: The nifty opened with a gap up, took a 20 point rally but failed to keep its momentum, then cooled off. These are signs of a choppy market, which never gives any fruit in any kind of trading. We are on the eve of the big event for which we were waiting – “election outcome”. We can assume a big move on Tuesday (as Monday will be a holiday on account of ‘HOLI’), but we cannot predict exactly where the market will move. It is sensible to hold your long positions if someone have any. It would be a fourth attempt to cross the 8980 level and if Nifty successfully manages to break 8860‐8980 on the upside then we may see new lifetime highs in very short time of span. However, this is just a scenario, first wait for a breakout; do not try to enter the market on Tuesday. Do not trade in volatile conditions. New opportunity will surely come but Markets need your patience. For the time being sit back and enjoy the “festival of colours – HOLI.” Option Trade in NIFTY We had bought 8900 Call Options March Expiry at the price of 160 in Wednesday’s trading session. We will wait patiently for markets to react to the poll results, and then decide on managing these calls. Till then hold on. BANK NIFTY: After opening with a gap up, Bank Nifty traded downside until last hour rally which pulled prices higher. In between index recorded intraday high and low at 20876.95 and 20648.80 respectively. Eventually, index managed to close above the yesterday close with a gain of 30 points at 20760.90 On the daily charts, Bank Nifty is still moving inside a trading range (20400 – 21100). Moreover, that range gets narrower as index hovering inside 20500 – 20900 from last five trading sessions (known as contraction). This may signal an expansion in the Bank Nifty very soon. Therefore traders should prepare to take a trade beyond the above mentioned trading range; Buy if Bank Nifty breaks above 20950; OR; Sell if a price breaks below 20450. If index opens beyond this range then apply the 15 min rule. Take one trade only whichever executes first and stop in either case would come at 20700.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
BATAINDIA 508 BUY Intermediate and short term trend is up in EXIDEIND. The stock has seen an upside rally and then started consolidating. Prices are trading range bound from last 1 month and now at the verge of breakout. Buy this stock above 509. If this trade executes then place your stop just below 503 and a target near 521.
EXIDEIND 214 BUY Intermediate and short term trend is up in EXIDEIND. The stock has seen an upside rally and then started consolidating. Prices are trading range bound from last 1 month and now at the verge of breakout. Buy this stock above 215. If this trade executes then place your stop just below 213 and a target near 219.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
HDFC LTD MAR FUT BUY 1380.4 CMP 1360 1420 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI   Stocks Price Price% OI % OI
JINDALSTEL.17.03 Mar 126.05 6.28 16.49 41130000 TECHM.17.03 Mar 478.25 -2.73 1.32 10529200
OIL.17.03 Mar 336.3 3.25 11.3 2678412 TATAGLOBAL.17.03 Mar 137.85 -2.55 0.86 31261500
BATAINDIA.17.03 Mar 510.65 2.55 3.12 2867700 PETRONET.17.03 Mar 380.25 -2.49 2.21 5956500
JUBLFOOD.17.03 Mar 1077.2 1.86 1.72 2075000 HINDZINC.17.03 Mar 285.2 -2.21 6.81 10243200
DCBBANK.17.03 Mar 160.15 1.59 12.44 4351500 CESC.17.03 Mar 798.45 -2.13 0.79 3779600
                                                                           Short covering                                                                               Long Unwinding
GODREJIND.17.03 Mar 2.65 -3.8 1291500 493.8 L&TFH.17.03 Mar 118.05 -1.25 -5.66 20394000
ICIL.17.03 Mar 2.6 -0.31 3395000 175.5 HEXAWARE.17.03 Mar 218.95 -1.22 -4.39 4050000
BOSCHLTD.17.03 Mar 2.51 -7.02 84800 22727.1 GRASIM.17.03 Mar 1003.05 -1.05 -0.71 6313500
BRITANNIA.17.03 Mar 1.63 -0.24 1353800 3137.7 ABIRLANUVO.17.03 Mar 1460.45 -0.9 -2.6 2380000
CONCOR.17.03 Mar 1.51 -2.4 1259000 1240.65 NTPC.17.03 Mar 157.4 -0.82 -1.23 30932000

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Dabur India Ltd. 273.4 -0.56 1229415 920468 87.38   Nifty 50 8934.55 0.08 19371034
SHRIRAM TRANS FIN CO. LT 959.35 -0.17 408745 1084275 82.46 Nifty Bank 20727.55 0.03 8338998
IndusInd Bank Ltd. 1335.75 0.71 1614891 1138874 78.72 Nifty IT 10749.85 0.23 807752
Power Grid Corporation o 192.55 -0.98 9218511 4248168 77.24   INDIA VIX 13.96 -2.99 1.22E+08
Kirloskar Cummins Ltd. 855.5 -0.46 239359 122375 75.98   Nifty Pharma 10468.35 -0.29 16520032
Tata Power Co. Ltd. 81.95 -0.3 1925931 3765004 75.78   Nifty Realty 198.25 -0.08 8.7E+08
HDFC Ltd. 1373.8 0.17 1607599 1664944 75.5   Nifty Infrastructure 2987.35 0.25 57957355
COALINDIA 316.3 -0.57 5243694 3295640 75.49   Nifty Auto 9779.25 0.26 17700651
Lupin Limited 1447.1 -0.44 369219 524756 74.63   Nifty Metal 3034.65 -0.59 56786960
NTPC Limited 157.1 -0.76 2418661 3463665 74.22   Nifty Commodities 3365.25 -0.32 9690776

UPCOMING ECONOMIC DATA

                                      Domestic                                                                                                                                  International
•WPI Data on (Feb) YoY on 14th March , 2017.

•CPI Data on (Feb) YoY on 14th March , 2017. (Tentative)

•Existing Home Sales (Feb) on 22nd March, 2017.

CORPORATE NEWS

•IndusInd Bank is in talks with multiple entities for business expansion, including the widely speculated merger of Bharat Financial Inclusion (BFI).

•Oil India Limited (OIL) has signed an MoU with the University of Houston in a bid to augment its reserves base and maximise recovery from its ageing oilfields.

•Tata Power Delhi Distribution Ltd is planning to install 1,000 electric vehicle charging stations in next four to five years in Delhi.

•Mahindra & Mahindra has divested 7.5 percent stake in the group hospitality arm Mahindra Holidays & Resorts India Ltd (MHRIL) for around Rs 274.36 crore.

•A2Z Infra Engineering has won three contracts worth over Rs 222 crore from Chhattisgarh State Power Distribution Company Ltd.

Source: Economic Times, Business Standard

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
BANKBARODA Board Meeting Postponed 14-Mar-17 SUNCLAYLTD Dividend 15-Mar-17
UPERGANGES Meeting Updates 14-Mar-17 SGFL Board Meeting Adjourned 15-Mar-17
OUDHSUG Others 14-Mar-17 SBIN Raising of Funds 15-Mar-17
ORBITCORP Others 14-Mar-17 KALPATPOWR Raising of Funds 15-Mar-17
NET4 Board Meeting Adjourned 14-Mar-17 ENGINERSIN Dividend 16-Mar-17
FAIRCHEM Board meeting Rescheduled 14-Mar-17 ABMINTLTD Bonus 17-Mar-17
BEARDSELL Stock split 15-Mar-17 SURANAT&P Issue of Securities 17-Mar-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
COALINDIA Interim Dividend – Rs. – 18.7500 14-Mar-17 AMBUJACEM Final Dividend – Rs. – 1.2000 16-Mar-17
DICIND Dividend – Rs. – 4.0000 14-Mar-17 BEL Stock  Split From Rs.10/- to Rs.1/- 16-Mar-17
EMAMILTD Interim Dividend – Rs. – 1.7500 14-Mar-17 CADILAHC Interim Dividend – Rs. – 3.2000 16-Mar-17
GEOMETRIC Amalgamation 14-Mar-17 HEROMOTOCO Interim Dividend – Rs. – 55.0000 16-Mar-17
GEOMETRIC Spin Off 14-Mar-17 KUSHAL Bonus issue 1:1 16-Mar-17
TVSMOTOR Interim Dividend – Rs. – 1.2500 14-Mar-17 MYSOREBANK Amalgamation 16-Mar-17
KPEL Bonus issue 1.501 15-Mar-17 NMDC Interim Dividend – Rs. – 4.1500 16-Mar-17
VGUARD Bonus issue 2:5 15-Mar-17 SBBJ Amalgamation 16-Mar-17
ACC Dividend – Rs. – 6.0000 16-Mar-17 SBT Amalgamation 16-Mar-17

DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

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