MARKET OUTLOOK – 23th June, 2017

BIG CHOPPY MOVEMENTS IN NIFTY RESULT IN VOLATILITY, FAIL TO GIVE ANY SENSE OF DIRECTION; STAY LONG WITH PROPER STOPS; LIGHTEN TRADING POSITIONS ON FRIDAY AHEAD OF 3 DAY MARKET CLOSE;WEAKNESS IN METALS CONTINUES, AVOID BUYING THIS SECTOR;

NIFTY: Lifetime Highs in SENSEX, Almost there is NIFTY, but day ends in chaos This is what happened on Thursday, today. The Nifty opened higher, building on the bullish momentum created yesterday. During the early hours the SENSEX crossed its earlier lifetime high to make a new record. The NIFTY was almost there, needing about 10 points to make its own lifetime record. Alas, that never did come about.
A mid day decline developed into a mini crash as the Index fell almost 75 points (0.8 percent) from its high.

This decline could be

(a) A true reversal of trend,
(b) A normal move with markets showing signs of nervousness as it touches lifetime records,
(c) A shifting of positions which occurs before futures & options expiry.
We really do not know the reasons why market behaves as they do.
We are interested in judging market momentum and deciding on our plan of trading.
The Nifty remains above 9560, which was the previous low. So far this low is not violated, we are bullish..

BANK NIFTY:

Bank Nifty has traded choppy today. Index opened with a gap up of 30 points at 23721.55 and went through a rally making new lifetime high near 23900. However, index couldn’t hold higher levels and closed lower near 23750.

On the daily charts, Bank Nifty was trading narrow inside 250 points from last three days. Today, it broke out from that narrow range and made new lifetime highs. We had anticipated this move in our previous newsletter that is why we gave a long trade in the index at the opening price that executed near 23720.

Now, traders should hold on to this long position with a same stop loss of 23600. Intraday traders should also look to trade in the index only on the long side on dips and consolidation patterns. Avoid taking short position..

Additionally, Nifty is still trading in a range that also affects the overall market trend. Hence, positional traders should avoid taking positions in the Bank Nifty till we see a sustain move. Though, intraday traders can look to trade in the index only on the long side on dips and consolidation patterns. Avoid taking short position.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
CUMMINSIND 901 SELL Intermediate and Short Term Trend is down in CUMMINSIND. The stock has seen a sharp decline and then started trading range bound. Prices are now at the verge of breakdown. We may see a decline here. Sell this stock below 898. If this trade executes then place a stop just above 910 and a target at 874.
RECLTD 181 SELL Intermediate and Short Term Trend is down in RECLTD. The stock has seen a sharp decline and then started trading range bound. Prices have seen a breakdown and closed lower. Sell this stock below 181. If this trade executes then place a stop just above 183 and a target at 177.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
ABIRLANUVO JUNE FUT BUY 1749 BET(1735-1740) 1715 1780 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
RDEL.17.06 Jun 60.45 6.05 4.58 14373000 JUSTDIAL.17.06 Jun 392.3 -4.41 3.32 4371600
GODFRYPHLP.17.06 Jun 1286.25 3.64 1.82 587000 WOCKPHARMA.17.06 Jun 557 -4.21 1.26 3616200
ABIRLANUVO.17.06 Jun 1749.55 3.57 5.75 2398000 IOC.17.06 Jun 394.2 -3.72 0.43 26577000
GRASIM.17.06 Jun 1174.9 3.47 0.27 6346500 PCJEWELLER.17.06 Jun 505.8 -3.71 3.89 2928000
BALKRISIND.17.06 Jun 1717 2.91 5.93 350000 EXIDEIND.17.06 Jun 218.5 -3.19 3.95 14332000
                                                                           Short covering                                                                               Long Unwinding
JPASSOCIAT.17.06 Jun 6.82 -6.76 1.53E+08 16.45 IBREALEST.17.06 Jun 190.7 -10.68 -1.13 29850000
RCOM.17.06 Jun 3.02 -2.33 1.11E+08 20.45 JINDALSTEL.17.06 Jun 122 -2.44 -0.65 44820000
BEML.17.06 Jun 2.57 -0.75 2389200 1551 NMDC.17.06 Jun 109.25 -2.28 -0.56 34074000
SUNPHARMA.17.06 Jun 1.79 -2.93 34801900 538.75 HDIL.17.06 Jun 87.9 -2.22 -3.09 28120000
SAIL.17.06 Jun 1.48 -3.58 73344000 58.4 IFCI.17.06 Jun 24.75 -2.17 -1.11 80212000

Top Delivery Percentage

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Power Grid Corporation o 202.3 -1.65 18964075 6504905 83.46 Nifty 50 9630 -0.04 93009
Hero MotoCorp Limited 3730.7 -1.02 272211 205141 81.07 Nifty Bank 23736.1 0.12 93009
NTPC Limited 158.95 -0.53 4283012 2724838 79.87 Nifty IT 10199.55 -0.23 93009
HDFC Ltd. 1653.8 1.57 3438975 1833784 77.71 INDIA VIX 11.21 2.63 93009
Mah & Mah Ltd. 1396.3 0.66 1128366 1134404 75.89 Nifty Pharma 9471.6 0.16 93009
Petronet LNG Limited 435.8 -1.73 3641370 1650333 75.5 Nifty Realty 267.8 -1.58 93012
Bharti Airtel Limited 366.2 -0.3 6320827 1999535 75.32 Nifty Infrastructure 3219.7 -0.55 93012
Ambuja Cements Ltd 244.95 1.91 4917780 1815414 75.23 Nifty PSU Bank 3514.5 0.54 93012
IndusInd Bank Ltd. 1490.65 -0.25 905839 644475 74.96 Nifty Auto 10820.75 -0.14 93012
Shree Cements Ltd. 17337.85 -0.22 9976 20221 74.13 Nifty Metal 2912.65 -1.38 93012

Upcoming Economic Data

                                      Domestic
•Nikkei Manufacturing PMI on 03rd July, 2017.

•Nikkei Service PMI on 05th July, 2017.

Corporate News

•Tata Power has offered to sell 51 per cent stake in its 4,000 MW Mundra power project for Re 1 to states like Gujarat which buy electricity from it so as to rescue the debt-laden, loss-making business

•Glenmark Pharmaceuticals: the US health regulator has granted tentative approval for tablets used for treatment of overactive bladder.

•Tata group retail arm Trent has raised Rs 100 crore from the market by issuing commercial papers to refinance its upcoming repayments.

Source: Economics Times

Corporate Action

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
STEELCAS Dividend – Rs. – 0.6000 23-Jun-17 TATACOFFEE Dividend – Rs. – 1.5000 30-Jun-17
APOLLOTYRE Dividend – Rs. – 3.0000 27-Jun-17 TATACOFFEE Special Dividend – Rs. – 0.2500 30-Jun-17
FCH Final Dividend – Rs. – 2.6000 27-Jun-17 AHLWEST Final Dividend – Rs. – 1.0000 3-Jul-17
ELNET Dividend – Rs. – 1.4000 28-Jun-17 FEDERALBNK Dividend – Rs. – 0.9000 3-Jul-17
ENGINERSIN Buy Back of Shares 28-Jun-17 JYOTHYLAB Dividend – Rs. – 6.0000 3-Jul-17
INDIANHUME Final Dividend – Rs. – 2.4000 28-Jun-17 PETRONET Bonus issue 1:1 3-Jul-17
CENTUM Final Dividend – Rs. – 3.0000 29-Jun-17 PLASTIBLEN Bonus issue 1:1 3-Jul-17
EASTRED Final Dividend – Rs. – 0.5000 29-Jun-17 SANWARIA Bonus issue 1:1 3-Jul-17
GULPOLY Final Dividend – Rs. – 0.3000 29-Jun-17 SOUTHBANK Dividend – Rs. – 0.4000 3-Jul-17
HDFCBANK Dividend – Rs. – 11.0000 29-Jun-17 CCL Dividend – Rs. – 2.5000 4-Jul-17
NUCLEUS Buy Back of Shares 29-Jun-17 ESSELPRO Final Dividend – Rs. – 2.4000 4-Jul-17
NUCLEUS Final Dividend – Rs. – 5.0000 29-Jun-17 MAYURUNIQ Final Dividend – Rs. – 0.2500 4-Jul-17
SKPSEC Buy Back of Shares 29-Jun-17 SUNDARMFIN Final Dividend – Rs. – 6.5000 4-Jul-17
STRTECH Final Dividend – Rs. – 0.7500 29-Jun-17 TRITONV Dividend – Rs. – 15.0000 4-Jul-17
HEROMOTOCO Final Dividend – Rs. – 30.0000 30-Jun-17 ABIRLANUVO Amalgamation 5-Jul-17
JSWENERGY Dividend – Rs. – 0.5000 30-Jun-17 DABUR Final Dividend – Rs. – 1.0000 5-Jul-17

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

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