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.

daily stock market analysis

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:

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.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
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.

 

DERIVATIVE PICKS 

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
Sectors Price Change % Quantity
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

                                      Domestic                                                                                                                                  International
•Nikkei Manufacturing PMI on 03rd April , 2017.

•IIP Data on  12th April , 2017. (Tentative)

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

CORPORATE NEWS

•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

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
ABGSHIP Results 21-Mar-17 HINDZINC BM Rescheduled 22-Mar-17
SHARDACROP Dividend 21-Mar-17 DELTACORP Issue of Securities 22-Mar-17
IDBI Preferential issue 21-Mar-17 CANFINHOME Others 23-Mar-17
EDL Conversion 21-Mar-17 MUTHOOTFIN Dividend 23-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

CORPORATE ACTION

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

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

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