Buying Opportunities Will Emerge When Correction Ends
Market Outlook 21 March 2017
Decline In Nifty May Be A Signal Of Correction; Overall Trend Remains Up In The Markets; Buying Opportunities Will Emerge When Correction Ends; Banks Are Without Direction – Avoid Them For Now.
NIFTY: Nifty had a narrow day with a bearish bias due to the decline recorded in first few minutes of trading. The index traded in a narrow range after that dip and closed near the lows with a loss of 33 points at 9126.
On the daily charts, it was second consecutive lower closing in the Nifty after achieving new life time highs that should be justified because of the fact that prices have seen a notable up move of nearly 300 points in last few trading days. Correction after an up move like this should considered normal.
Now it is possible that this correction may continue for some time and prices may reach 9050 which is a short term support for the index. Correction is a part of an up trending market so we should accept it too.
Overall trend is up but short term view is sideways hence we should avoid trading in Nifty as well as in Bank Nifty and look for a buying opportunity in individual stocks. Next buying opportunity in the Nifty will emerge above 9200-9250 which acts as a resistance level in the index..
Bank Nifty again had a narrow range day where prices opened with a minor gap up above 21200 but beheld a sharp dip. Bank Nifty went into a narrow trading range after that and closed near the day’s low but above 21100 with a loss of 60 points.
On the daily charts, prices are in a narrow range from last five days. Resistance in the Index is placed near 21300-21350; whereas support is visible near 21000-21050 area.
Broadly, Bank Nifty is consolidating with the boundaries 21300-20850. Trend is up, so we may again see a move above 21330 and that would be a buying opportunity for swing traders.
However, as far as prices are trading inside this narrow range, traders should look to avoid trading as trading in the choppy environment may result in excessive loss due to direction-less moves.
Any shorting opportunity in the Bank Nifty may come below its support area. Nonetheless, traders should wait for the prices to close below 20850 to initiate a short trade. Till then, avoid the index completely.
|TATAGLOBAL||146||BUY||Intermediate and short term trend is up in TATAGLOBAL. The stock has seen a sharp upside rally and then started trading range bound. Prices have seen a breakout and closes higher. Buy this stock above 147. If this trade executes then place your stop just below 145 and a target near 151.|
|VOLTAS||391||BUY||Intermediate and short term trend is up in VOLTAS. The stock has seen an upside rally and then started trading narrow. We may see a big move here. Buy this stock above 392. If this trade executes then place your stop just below 388 and a target near 400.|
|Stock Name||Strike Price||Buy/Sell||CMP||Initiation||Stop Loss||Target||Remarks|
|BAJAJ FINANCE||MAR FUT||BUY||1176||CMP||1155||1210||OI Increase|
|Long Buildup||Short Buildup|
|Stocks||Price||Price%||OI %||OI||Stocks||Price||Price%||OI %||OI|
|PCJEWELLER.17.03 Mar||441||6.05||24.66||1114500||IDEA.17.03 Mar||97.4||-10.06||12.77||1.04E+08|
|ORIENTBANK.17.03 Mar||133.5||4.3||11.24||15798000||AXISBANK.17.03 Mar||504.45||-2.43||7.67||30663600|
|DIVISLAB.17.03 Mar||796.85||4.27||3.61||5099400||INFY.17.03 Mar||1018||-2||8.57||29107500|
|KSCL.17.03 Mar||553||3.98||11.84||4492500||ICICIBANK.17.03 Mar||276.4||-1.88||10.65||68340000|
|TORNTPOWER.17.03 Mar||216.9||3.11||2.36||4554000||ASHOKLEY.17.03 Mar||89.45||-1.81||3.67||68929000|
|Short covering||Long Unwinding|
|ICIL.17.03 Mar||1.56||-0.93||4473000||189.35||SINTEX.17.03 Mar||100||-0.94||-3.38||43733250|
|MRF.17.03 Mar||1.19||-7.12||54390||56325||JETAIRWAYS.17.03 Mar||474.8||-0.89||-7.89||5452000|
|RELCAPITAL.17.03 Mar||0.85||-6.17||11542500||608.2||TATASTEEL.17.03 Mar||498.7||-0.83||-1.8||21312000|
|GODREJCP.17.03 Mar||0.83||-0.33||490000||1698.9||TVSMOTOR.17.03 Mar||441||-0.66||-1.72||5144000|
|TATAELXSI.17.03 Mar||0.67||-0.31||1152000||1531||IGL.17.03 Mar||1041||-0.58||-1.7||1970100|
TOP DELIVERY PERCENTAGE
|Stocks||Price||%Chg||Vol||Delivery||Del %||% Change|
|Kotak Mahindra Bank Limi||854.6||0.75||1592288||4129559||88.87||Nifty 50||9126.85||-0.36||90243|
|HDFC Ltd.||1457.75||0.45||1745773||2907145||81.02||Nifty Bank||21110.25||-0.31||90243|
|Kirloskar Cummins Ltd.||906.85||1.43||427180||491404||80.54||Nifty IT||10776.75||-1.14||90243|
|UltraTech Cement Limited||3999.8||-0.99||556593||237035||80.25||INDIA VIX||12.02||1.41||90243|
|STRIDES SHASUN LIMITED||1159.4||2.49||1042797||396024||79.89||Nifty Pharma||10710.6||0.33||90246|
|Hindustan Petroleum Corp||511.35||-0.39||3418056||4701367||79.31||Nifty Realty||207.2||-0.38||90246|
|Mah & Mah Ltd.||1300.2||-0.28||741345||938419||79.29||Nifty Infrastructure||3055.2||-0.36||90246|
|GAIL (India) Limited||374.35||-0.21||3571777||2881385||79.02||Nifty Auto||10009.3||0||90249|
|NTPC Limited||161.4||0.91||2243162||5070497||78.85||Nifty Metal||3126.6||-0.03||90249|
|Infosys Limited||1021.5||-1.81||2213694||3727612||78.41||Nifty Commodities||3432.45||-0.15||90249|
UPCOMING ECONOMIC DATA
|•Nikkei Manufacturing PMI on 03rd April , 2017.
•IIP Data on 12th April , 2017. (Tentative)
|•Existing Home Sales (Feb) on 22nd March, 2017.|
|•Reliance Industries’ flagging KG basin D6 block has seen natural gas output slip further, leading the government to disallow $2.756 billion in cost. RIL and its partners BP plc of UK and Canada’s Niko Resources produced less than 16 per cent of the 31,793.28 million standard cubic meters (mmscm) target from KG-DWN-98/3 or KG-D6 block in 2013-14.
•Jet Airways has got into a codeshare agreement with Jetstar Asia, Singapore-based low-fares carrier, for flights from Singapore.
•Yes Bank has partnered with Payjo, an artificial intelligence banking platform based out of Silicon Valley, California to adopt its intelligence products.
•Oil and Natural Gas Corporation (ONGC) has signed definitive agreements to buy out debt-ridden GSPC’s entire 80 per cent stake in KG-basin natural gas block for $1.2 billion
Source: Economic Times, Business Standard
|Company Name||Purpose||Meeting Date||Company Name||Purpose||Meeting Date|
|SHARDACROP||Dividend||21-Mar-17||DELTACORP||Issue of Securities||22-Mar-17|
|AGARIND||Allotment of Securities||22-Mar-17||GALLISPAT||Amalgamation/Merger||23-Mar-17|
|UNITEDTEA||Dividend||22-Mar-17||BANKBARODA||Issue of Securities||23-Mar-17|
|INFRATEL||Dividend||22-Mar-17||MURUDCERA||Allotment of Securities||24-Mar-17|
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|CRISIL||Dividend – Rs. – 9.0000||21-Mar-17||POLYMED||Bonus issue 1:1||24-Mar-17|
|SHILPAMED||Interim Dividend – Rs. – 0.6000||21-Mar-17||IBVENTURES||Interim Dividend – Rs. – 1.0000||27-Mar-17|
|BEARDSELL||Interim Dividend – Rs. – 1.5000||22-Mar-17||PTL||Spin Off||27-Mar-17|
|PHL||Interim Dividend – Rs. – 7.5000||22-Mar-17||MPHASIS||Buy Back of Shares||30-Mar-17|
|SUNTV||Interim Dividend – Rs. – 5.0000||22-Mar-17||CONCOR||Bonus issue 1:4||5-Apr-17|
|AUDICH||Interim Dividend – Rs. – 3.5000||23-Mar-17||BOCINDIA||Dividend – Rs. – 0.7500||7-Apr-17|
|ENGINERSIN||Interim Dividend – Rs. – 2.5000||23-Mar-17||KSBPUMPS||Dividend – Rs. – 5.5000||12-Apr-17|
|NILE||Interim Dividend – Rs. – 3.0000||23-Mar-17||SANOFI||Final Dividend – Rs. – 50.0000||25-Apr-17|
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