Extended Holiday Weekend Results In Markets Taking A Pause
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;
NIFTY: Sideways 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.
|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.|
|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|
|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|
|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
|•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|
|•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
|Company Name||Purpose||Date||Company Name||Purpose||Date|
|TIJARIA||Board meeting Rescheduled||28-Aug-17||DTIL||Board meeting Rescheduled||28-Aug-17|
|MOLDTKPAC||Results/Others||28-Aug-17||CONTROLPR||Issue of Securities||29-Aug-17|
|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|
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