Market Outlook – 28 August 2017

Extended Holiday Weekend Results In Markets Taking A Pause; Nifty Still In A Range Of 9950-9700 And Trading Narrow Suggests A Big Move Soon; Wait For The Decisive Breakout; Pvt. Banks Struggles;

NIFTYSideways movement continues in the Nifty; prices are trading in a range with a first resistance visible at 9900 and another resistance comes higher at 9950. If first resistance breaks, we will have an initial sign that market are willing to go higher. If second resistance breaks then we may be looking at a significant upside surge all the way to 10150 (towards new high).

Moreover, prices are trading in the upper side of a range now, so a breakout on the upside seems more reasonable. Trading ranges are always difficult to trade. Now, within this range, prices may go up and down, but until a breakout is not confirmed, there is no clarity on the trend. This is the nature of the market, which we have to accept.

Today we saw only marginal movement on both sides in the Nifty and prices closed near yesterday’s close above 9850. The low volume says no supply and attests to the truncated trading week.

Intraday price action in Nifty was choppy and narrow today.  The index traded in a range of just 33 points. A gap up did not sustain and the index closed below its open. Also the index made a pattern of NR 7 (narrowest range in last 7 trading days). It is a term given to a day that has a range smallest of last 7 trading days including that day.

We have three days of early weekend starting tomorrow therefore a big move could happen on Monday.

BANK NIFTY: Bank Nifty also had a choppy day in the market; prices started with a gap up of 90 points near 24375. Index traded choppy inside a narrow range throughout the day making intraday high and low at 24411 and 24224 respectively.

Eventually, index managed to close above 24300 with a gain of 35 points. The index has made a pattern of NR7. We may see a big move soon in the index.

On the daily charts, Bank Nifty has a strong support zone at 23800. Index had bounced back from that support and now trading near its resistance of 24500.

However, the index is still in a trading range 23800-24500; prices were at the verge of a breakdown but came up from its support due to last couple of days of recovery.

We may see a breakout from this range very soon. Swing traders should avoid trading till the confirmation of a breakout.

Intraday trades depend on the market actions during the day. The idea is to take an ORB trade in either side for intraday only. Wait till 9.30 AM. Then buy above the high or sell below the low of the first 15 minutes; trade with lower volumes.

 

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
ASHOKLEY 103 BUY Intermediate and Short Term Trend are up in ASHOKLEY. The stock has seen a sharp decline and prices are now finding support near 101. We may see an upside rally here. Buy this stock above 104. If this trade executes then place a stop at 102.50 and a target at 107.
BOSCHLTD 21714 SELL Intermediate and Short Term Trend are down in BOSCHLTD. The stock has seen a decline and then started trading narrow. Prices have formed a pattern of Descending Triangle. We may see a decline here. Sell this stock below 21700. If this trade executes then place a stop at 21900 and a target at 21300.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
BAJAJA FINSV AUG FUT BUY 5518 5480-5490 5440 5550-5580 OI Increase

 

Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
KAJARIACER.17.08 Aug 701.55 7.73 45.2 701600 INDIGO.17.08 Aug 1191.25 -2.41 11.05 1627800
CADILAHC.17.08 Aug 493.5 6.33 5.21 2873600 BHARATFORG.17.08 Aug 1150.5 -1.67 1.2 4687800
AUROPHARMA.17.08 Aug 735.3 4.87 4.59 13849600 INDIANB.17.08 Aug 295.35 -1.4 1.13 3402000
KTKBANK.17.08 Aug 151.5 4.7 1.28 22002000 SINTEX.17.08 Aug 30 -1.32 1 17976375
AJANTPHARM.17.08 Aug 1235.9 3.55 4.09 528800 SHREECEM.17.08 Aug 16996.3 -1.32 4.06 33300
                                                                           Short covering                                                                               Long Unwinding
WOCKPHARMA.17.08 Aug 8.9 -1.01 3051200 609.6 IBREALEST.17.08 Aug 230 -1.92 -0.03 39070000
JPASSOCIAT.17.08 Aug 8.1 -0.09 1.45E+08 23.35 PETRONET.17.08 Aug 226.95 -1.9 -3.47 9933000
DIVISLAB.17.08 Aug 5.52 -3.44 5880000 674.95 APOLLOTYRE.17.08 Aug 256.65 -1.52 -0.83 9279000
LUPIN.17.08 Aug 3.81 -0.46 7940400 994 ADANIPORTS.17.08 Aug 380.5 -1.48 -0.97 7382500
MCDOWELL-N.17.08 Aug 3.75 -2.33 1801500 2570.3 BATAINDIA.17.08 Aug 669.7 -1.46 -3.04 2454100

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
HDFC Ltd. 1757.35 -0.45 1560281 2295328 80.29 Nifty 50 9857.05 0.05 86187
THE RAMCO CEMENTS 667.4 0.18 237260 154661 78.62 Nifty Bank 24274.2 -0.18 86181
Wipro Ltd 289.4 -0.21 2780093 1763231 75.55 Nifty IT 10503.9 0.24 86181
MARICO LIMITED 316.1 0.37 695941 951268 75.15 INDIA VIX 12.57 -4.61 86184
Hero MotoCorp Limited 3882.65 -0.16 222636 300270 73.64 Nifty Pharma 8902.05 3.32 86181
Mah & Mah Ltd. 1375.15 0.07 790046 575716 72.95 Nifty Realty 273.65 -0.6 86181
NHPC 29.75 0.17 4433035 2949464 72.11 Nifty Infrastructure 3306.25 0.25 86181
Colgate Palmolive (India 1093.75 0.61 290514 99500 70.65 Nifty PSU Bank 3323.05 0.69 86181
IndusInd Bank Ltd. 1667.7 0.41 1400606 764141 70.04 Nifty Auto 10571.45 0.18 86181
UltraTech Cement Limited 3939.65 -0.3 287019 99585 69.88 Nifty Metal 3414.05 0.48 86181

UPCOMING ECONOMIC DATA

                                            Domestic                                                                                                                            International
•GDP Quarterly Data (YoY) Q2 on 31st August, 2017.

•Nikkei Markit Manufacturing PMI (Aug) on 01st September, 2017

•Nikkei Service PMI (Aug) on 05th September, 2017

•US Non Farm Payrolls Data on 01st September, 2017

               

CORPORATE NEWS

•Zydus Cadila has received final approval from the US health regulator to market candesartan cilexetil tablets used for treatment of hypertension. The company will manufacture the drug at its formulations manufacturing facility in Moraiya, Ahmedabad.

•To bring down its around Rs 49,000 crore gross debt, Tata Power is planning to sell its non-core assets even as it continues to explore viable options to resolve issues pertaining to the financially crippled 4,000-mw Coastal Gujarat Power at Mundra.

• Lupin, through its USA subsidiary Lupin Pharmaceuticals, Inc has initiated voluntary recall of tablets Mibelas 24 Fe from the USA market as they are “out of sequence.”  According to a notification issued by the US Food and Drug Administration (USFDA), as many as 24,652 tablets are being recalled under ‘class-I’ classification.

•Bank of India has reduced interest rate on savings bank accounts by 50 basis points to 3.5 per cent on deposits of up to Rs 50 lakh.

Source: Economics Times

BOARD MEETINGS

Company Name Purpose Date Company Name Purpose Date
8KMILES Results/Others 28-Aug-17 BAGFILMS Meeting Updates 28-Aug-17
VISHNU Meeting Updates 28-Aug-17 AURIONPRO Results 28-Aug-17
SURYALAXMI Results 28-Aug-17 CAMLINFINE Results 28-Aug-17
TIJARIA Board meeting Rescheduled 28-Aug-17 DTIL Board meeting Rescheduled 28-Aug-17
RAJSREESUG Results/Others 28-Aug-17 ANIKINDS Others 28-Aug-17
NARMADASUG Meeting Updates 28-Aug-17 AMDIND Results/Others 28-Aug-17
PRAKASHSTL Results 28-Aug-17 AGARIND Meeting Updates 28-Aug-17
MOLDTKPAC Results/Others 28-Aug-17 CONTROLPR Issue of Securities 29-Aug-17
MOLDTECH Results/Others 28-Aug-17 VISESHINFO Meeting Updates 29-Aug-17
IL&FSENGG Results 28-Aug-17 TECHNOFAB Others 29-Aug-17
GAL Results/Others 28-Aug-17 SIL Results 29-Aug-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
AMBIKCO Interim Dividend – Rs. – 10.0000 28-Aug-17 SURYALA Dividend – Rs. – 1.5000 28-Aug-17
GUFICBIO Dividend – Rs. – 0.0500 28-Aug-17 BANASFN Consolidation of Shares 29-Aug-17
HINDALUMI Final Dividend – Rs. – 1.6000 28-Aug-17 CUPID Final Dividend – Rs. – 2.0000 29-Aug-17
PINCON Dividend – Rs. – 0.7500 28-Aug-17 IVC Dividend – Rs. – 0.6000 29-Aug-17
RAJPUTANA Bonus issue 9:5 28-Aug-17 ONMOBILE Dividend – Rs. – 1.5000 29-Aug-17
SIPROJECTS Interim Dividend – Rs. – 0.5000 28-Aug-17 GAEL Final Dividend – Rs. – 0.8000 30-Aug-17
SKIPPER Dividend – Rs. – 1.5500 28-Aug-17 JKLAKSHMI Dividend – Rs. – 0.7500 30-Aug-17

 


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

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


For Daily Share Market Updates, Market Research Analysis reports, Weekly Techno-Funda Report, Fundamental Analysis Report, Monthly Recommended stock Picks, Equity Trading Tips, Upcoming IPO/NFO/Bonds/Ncd’s  updates & other related information Subscribe our research plan http://wms.elitewealth.in