Dark Shadows Emerge Over Rally As Nifty Closes Higher But Intra-Day Gains Not Sustained
Market Outlook – 27 March 2017
Dark Shadows Emerge Over Rally As Nifty Closes Higher But Intra-Day Gains Not Sustained; Trend Changed To Sideways And Period Of Consolidation Likely; 8980 Should Act As Support In Nifty; Avoid Index Trading;
After a gap up above 9100, Nifty rallied to cross 9130 in no time, but that rally fizzled out in the second half. Intraday price action was choppy and volatile as prices traded with strength in the first half but eventually closed near the opening due to last hour dip.
Yesterday we had displayed three scenarios in our newsletter and our recommendation was “at least for the time being, markets may be willing to pause, try for a consolidation.” We still think that index is keen to trade inside a range with support (8980) and a resistance of (9200).
There is no rush to take a trade here. We can easily be patient.
Once inside a trading range, the short term trend for the Nifty becomes almost unknown. Sorry, there is a trend: it is a sideways trend. But, the sideways trend does not offer any opportunities for meaningful trading.
We should be buyers in the Nifty once the Index goes above 9200. We are willing sellers if the index goes below 8950. Between these two lines, you can take some intraday trades if you wish, but, mainly, take it easy.
It was an uptrend day in the Bank Nifty, as prices started well with a gap up of 100 points near 21000 and rally in early phase of the day took prices higher. The index made a high near 21175 but closed at 21122 with a gain of 235 points.
Now today’s rally has changed the bank Nifty trend to sideways. We may see a range bound trading in the index inside 20450 (acts as a support) and 21300 (resistance).
Traders were carrying short positions in the Bank Nifty from 20820 and we had advised them to hold with a stop loss of 21100. Today prices opened near 21000 and intraday rally took prices above our stop loss of 21100. Traders have stopped out from short positions with a loss of 280 points.
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 new trading pattern and then look to enter the markets.
|ASIANPAINT||1064||BUY||Intermediate and short term trend is up in ASIANPAINT. The stock has seen an upside rally and then saw a minor correction in a shape of bullish flag. We may see a breakout here. Buy this stock above 1065. If this trade executes then place your stop just below 1050 and a target near 1095.|
|JISLJALEQS||93||BUY||Intermediate and short term trend is sideways in JISLJALEQS. The stock has seen an upside rally and then started a process of consolidation. Prices have made a pattern of continuous bullish head & shoulder and now at the verge of breakout. Buy this stock above 96. If this trade executes then place your stop just below 95 and a target near 99.|
|Stock Name||Strike Price||Buy/Sell||CMP||Initiation||Stop Loss||Target||Remarks|
|ADANIENT||MAR FUT||BUY||105.8||ABOVE 106.5||104||110||OI Increase|
|Long Buildup||Short Buildup|
|Stocks||Price||Price%||OI %||OI||Stocks||Price||Price%||OI %||OI|
|CG POWER AND INDUSTRIAL||77.4||3.75||8.89||15576000||JINDALSTEL.17.03 Mar||120||-4.76||6.93||38880000|
|CUMMINSIND.17.03 Mar||926.1||1.89||1.45||798000||TCS.17.03 Mar||2436||-1.34||8.76||6946750|
|KSCL.17.03 Mar||562.1||1.6||9.33||3496500||HEXAWARE.17.03 Mar||221.2||-1.34||1.09||3624000|
|ADANIENT.17.03 Mar||105.95||0.95||1.09||19304000||AMBUJACEM.17.03 Mar||230.7||-1.22||2.57||12095000|
|LT.17.03 Mar||1554.15||0.37||1.02||8497000||TITAN.17.03 Mar||449.2||-0.97||0.08||5575500|
|Short covering||Long Unwinding|
|APOLLOTYRE.17.03 Mar||0.99||-17.12||13053000||209.1||GRASIM.17.03 Mar||1061.9||-2.85||-0.4||7156500|
|NIITTECH.17.03 Mar||2.15||-16.72||762000||422.95||ABIRLANUVO.17.03 Mar||1537.45||-2.65||-11.59||2968800|
|HINDZINC.17.03 Mar||0.82||-14.79||10419200||295.3||RELCAPITAL.17.03 Mar||601.7||-1.88||-11.38||9169500|
|CASTROLIND.17.03 Mar||0.3||-14.48||7963200||420.05||TORNTPHARM.17.03 Mar||1411.75||-1.83||-2.06||190400|
|GRANULES.17.03 Mar||0.4||-11.47||12540000||137.8||GODREJCP.17.03 Mar||1670.15||-1.6||-0.61||456800|
TOP DELIVERY PERCENTAGE
|Stocks||Price||%Chg||Vol||Delivery||Del %||% Change|
|STRIDES SHASUN LIMITED||1139.65||-0.84||213826||1487435||96.09||Nifty 50||9108||0.24||29339831|
|Bajaj Auto Limited||2843||-0.8||218228||315713||86.52||Nifty Bank||21122.55||1.09||12671266|
|Tata Power Co. Ltd.||86.55||-0.63||4159127||3986116||83.57||Nifty IT||10768.95||-0.75||1194605|
|Kotak Mahindra Bank Limi||879.35||1.29||4605609||3282488||83.4||INDIA VIX||11.98||1.18||2.23E+08|
|HDFC Ltd.||1462.6||0.41||1701119||1944628||83.03||Nifty Pharma||10556.35||-0.18||25276113|
|BHARTI INFRATEL LIMITED||310.4||-1||1346006||1341014||80.08||Nifty Realty||213.2||0.45||1.25E+09|
|ITC Ltd.||281||1.22||7123953||13355224||79.04||Nifty Infrastructure||3045.15||0.2||87676998|
|IndusInd Bank Ltd.||1389.55||0.41||1602574||1212889||78.69||Nifty PSU Bank||3359.85||3.31||79957613|
|Mah & Mah Ltd.||1275.8||0.1||725278||779790||78.33||Nifty Auto||9878.35||-0.2||27026356|
|Wipro Ltd||513.25||0.64||1511636||2135935||76.34||Nifty Metal||3123||0.31||85448438|
UPCOMING ECONOMIC DATA
|•Nikkei Manufacturing PMI on 03rd April , 2017.
•IIP Data on 12th April , 2017. (Tentative)
|•Reliance Infrastructure has emerged the lowest bidder for a Rs 800-crore highway construction job in Tamil Nadu, The project entails widening a 66 km-long section of NH-45 C connecting Vikkaravandi to Pinalur-Sethiyahopu into four lanes. The engineering, construction and procurement project is to be completed in 24 months.
•Carborundum Universal (Cumi) has opened new fusion units at its electro mineral plant in Kochi, as part of efforts to manufacture engineered materials for high end applications.
•The United States Food and Drug Administration (US FDA) has granted Indian drug maker Lupin final approval to market a generic version of Swiss pharmaceutical giant Novartis’ tobramycin inhalation solution ‘Tobi’.
Source: Economic Times, Business Standard .
|Company Name||Purpose||Meeting Date||Company Name||Purpose||Meeting Date|
|SUNFLAG||Meeting Updates||27-Mar-17||CEREBRAINT||Issue of Securities||27-Mar-17|
|UNITEDBNK||Preferential issue||27-Mar-17||THEMISMED||Meeting Updates||28-Mar-17|
|ESSARSHPNG||Board Meeting Postponed||27-Mar-17||S&SPOWER||Others||30-Mar-17|
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|IBVENTURES||Interim Dividend – Rs. – 1.0000||27-Mar-17||INFRATEL||Interim Dividend – Rs. – 12.0000||31-Mar-17|
|HINDZINC||Special Dividend – Rs. – 27.5000||29-Mar-17||OIL||Buy Back of Shares||3-Apr-17|
|MAHLIFE||Right Issue of Equity Shares||30-Mar-17||CONCOR||Bonus issue 1:4||5-Apr-17|
|MPHASIS||Buy Back of Shares||30-Mar-17||BOCINDIA||Dividend – Rs. – 0.7500||7-Apr-17|
|SHARDACROP||Interim Dividend – Rs. – 2.0000||30-Mar-17||KSBPUMPS||Dividend – Rs. – 5.5000||12-Apr-17|
|ASHARI||Bonus issue 4:1||31-Mar-17||SANOFI||Final Dividend – Rs. – 50.0000||25-Apr-17|
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