Market Outlook – 28 March 2017

Choppy Markets Create Confusion Among Participants; Nifty Remains In Range With Support At 8980 And Resistance At 9200; Index Is Finding Difficult For A Sustain Move; So We Should Stay Away From Such Environments.

NIFTY

Markets have witnessed choppy price action as prices started off the day with a gap down and moved lower. However, a V-Shaped rally after lunch gave some respite to bulls but eventually index closed in the lower side of today’s trading range of 70 points at 9045.20.

On the daily charts, index hovering inside a trading range. We wait patiently for the Nifty to cross the thresholds: 8980 or 9200 – these represent significant support and resistance areas. Our view has been sideways: so, we stay out of the index trading.

We may see alternate bouts of buying and selling as far as index roving with a sideways trend. We should maintain our patience and wait for the sustain breakout from either of above two levels for a trade in Nifty index.

PSU Banking stocks are outperforming, so traders can look for a buying opportunity in stock like SBIN, PNB, and BANKINDIA only on dips and consolidations.

BANK NIFTY:

Bank Nifty traded sluggishly despite of Friday’s rally. The index started the session with a minor gap up at 21178 and made a high just above to it.

Prises saw a furious drop of 200 points till lunch which took prices below 21000 levels. Though, index found recovery that helped prices to regain minor points. Eventually, index closing below 21050 with a decline of 80 points.

Trend remains sideways in the Bank Nifty. Roughly, the index is trading inside a range 20750 – 21300 from last two weeks. On a broader side prices are locked inside 20450 – 21300 from last one month. We may see choppy price movement as far as prices are trading inside the above defined range. Presently, the index is trading in the centre and prices can go either way. So, wait it out.

Now, we do not have any new trading opportunity since our view in the Bank Nifty is sideways. Trading in choppy markets may result in damaging trader’s funds and capital. We should wait for a breakout and then look to enter the markets.

 

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
GLENMARK 875 SELL Intermediate and short term trend is sideways in GLENMARK. The stock is consolidating inside a large range. Prices are trading near the support and at the verge of breakdown. Sell this stock below 872. If this trade executes then place your stop just above 885 and a target near 846.
HDFC 1477 BUY Intermediate and short term trend is up in HDFC. The stock has seen an upside rally and then started trading inside a narrow range. Prices have seen a breakout today and closed higher. Buy this stock above 1480. If this trade executes then place your stop just below 1470 and a target near 1500.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
CANBK MAR FUT BUY 296.05 CMP 292 302-305 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI   Stocks Price Price% OI % OI
PETRONET.17.03 Mar 407.95 2.95 12.44 6088500 TATASTEEL.17.03 Mar 477.25 -3.42 19.8 23454000
PNB.17.03 Mar 145.45 2.83 3.03 49490000 HINDALCO.17.03 Mar 188.75 -3.21 6.98 43627500
JETAIRWAYS.17.03 Mar 505.1 2.32 0.91 4542000 JPASSOCIAT.17.03 Mar 13.05 -2.97 1.17 1.35E+08
LICHSGFIN.17.03 Mar 609 1.27 8.57 5992800 TV18BRDCST.17.03 Mar 42.1 -2.88 0.81 78064000
INFRATEL.17.03 Mar 314.35 1.26 1.94 9675200 DABUR.17.03 Mar 274.55 -2.71 2.39 12630000
                                                                           Short covering                                                                               Long Unwinding
DISHTV.17.03 Mar 2.7 -1.79 23065000 110.2 JSWSTEEL.17.03 Mar 179.25 -4.14 -0.24 33486000
GODREJIND.17.03 Mar 2.4 -8.25 1435500 505.9 SAIL.17.03 Mar 60.2 -3.68 -4.18 40404000
NHPC.17.03 Mar 2.11 -5.71 19170000 31.45 IDEA.17.03 Mar 87.9 -3.51 -1.58 90993000
JUBLFOOD.17.03 Mar 1.96 -7.63 1955500 1104.9 KSCL.17.03 Mar 544.1 -3.2 -7.34 3240000
BANKINDIA.17.03 Mar 1.92 -4.57 22170000 135.6 RELIANCE.17.03 Mar 1251.8 -2.87 -2.57 18089500

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Hero MotoCorp Limited 3343.2 -0.95 296970 9006832 98.89   Nifty 50 9045.2 -0.69 89010
Kotak Mahindra Bank Limi 871.15 -0.93 1999306 3922409 85.17 Nifty Bank 21056.9 -0.31 89013
Oil & Natural Gas Corp 188.9 -1.56 4780041 7704099 82.93 Nifty IT 10648.5 -1.12 89013
HDFC Ltd. 1474.7 0.83 2418666 1380223 81.14   Nifty Pharma 10441.9 -1.08 89013
SHRIRAM TRANS FIN CO. LT 1020.8 -1.08 562545 565484 79.46   Nifty Realty 213.05 -0.07 89016
Indian Oil Corp. Ltd. 370.9 -0.48 2127352 2405148 79.09   Nifty Infrastructure 3032.25 -0.42 89019
Maruti Suzuki India Ltd 5985.8 -0.31 340512 441703 77.05   Nifty PSU Bank 3404.05 1.32 89019
NTPC Limited 163.35 -0.76 2720777 2919239 76.46   Nifty Auto 9808.2 -0.71 89019
COALINDIA 291.5 -2.13 5001302 7338976 76.1   Nifty Metal 3040.2 -2.65 89019
Power Grid Corporation o 194.85 0.57 3996112 2618254 75.51   Nifty Commodities 3395.05 -1.29 89022

UPCOMING ECONOMIC DATA

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

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

CORPORATE NEWS

•Motherson Sumi Systems Ltd (MSSL has completed acquisition of Finnish wiring harness maker PKC Group Plc for €571 million (about Rs 4,150 crore), may foray into the domestic railways sector going ahead.

•BHEL has commissioned a 250-mw eco-friendly unit, using low grade coal (lignite) as primary fuel. The lignite-based thermal unit, based on circulating fluidised bed combustion (CFBC) technology, is the second such facility to be commissioned at Bhavnagar Energy Company’s (BECL) 2×250 mw thermal power project at Padva in Bhavnagar district of Gujarat

• Larsen & Toubro, in a joint venture with Shriram EPC, has bagged an order worth Rs 705 crore for a water pipeline project in Tanzania.

Source: Economic Times, Business Standard                             .

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
AUTOLITIND Preferential issue 28-Mar-17 S&SPOWER Others 30-Mar-17
THEMISMED Meeting Updates 28-Mar-17 INDNIPPON Dividend 30-Mar-17
IBVENTURES Preferential issue 28-Mar-17 LAKPRE Results 31-Mar-17
NBCC Dividend 29-Mar-17 GUFICBIO Meeting Updates 3-Apr-17
SUBROS Issue of Securities 29-Mar-17 AVTNPL Others 6-Apr-17
OFSS Dividend 29-Mar-17 PRIMESECU Results 6-Apr-17
NBCC Dividend 29-Mar-17 AVTNPL Others 6-Apr-17
COFFEEDAY Issue of Securities 30-Mar-17 GMBREW Results/Dividend 6-Apr-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
BEL Interim Dividend – Rs. – 0.9000 29-Mar-17 ASHARI Bonus issue 4:1 31-Mar-17
HINDZINC Special Dividend – Rs. – 27.5000 29-Mar-17 INFRATEL Interim Dividend – Rs. – 12.0000 31-Mar-17
MAHLIFE Right Issue of Equity Shares 30-Mar-17 SFCL Amalgamation 31-Mar-17
MPHASIS Buy Back of Shares 30-Mar-17 OIL Buy Back of Shares 3-Apr-17
MUTHOOTFIN Interim Dividend – Rs. – 6.0000 30-Mar-17 CONCOR Bonus issue 1:4 5-Apr-17
PFC Interim Dividend – Rs. – 5.0000 30-Mar-17 SKFINDIA Buy Back of Shares 6-Apr-17
SHARDACROP Interim Dividend – Rs. – 2.0000 30-Mar-17 BOCINDIA Dividend – Rs. – 0.7500 7-Apr-17

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

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