Five Days Of Narrow Ranges Inside A Trading Range (9280-9370) Suggests Uncertainty And Consolidation
Market Outlook – 03 May 2017
Five Days Of Narrow Ranges Inside A Trading Range (9280-9370) Suggests Uncertainty And Consolidation; Wait Patiently For Market To Move Beyond Range; Midcap Continues To Outperform;
Nifty traded choppy in a narrow range with a negative bias for most part of the day. However, it recovered some losses in the second half to finally close above previous day’s close at 9313.80 with a gain of 9.75 points. Index ended in the middle of today’s range hence nothing much can be derived from intraday price action.
On the daily charts, sideways movement sustain in Nifty which is continuing from last five trading days with a support around 9280 and resistance is visible near 9370.
Markets go through cycles of contraction and expansion. Traders make money in expanding markets. Strong momentum provides gains. However, the numbers of trading days with strong momentum are few. Thus, most of the gains in trading are made in a small number of days. For the larger part, markets remain in consolidation which is another term for contraction. This process is now being repeated for the Nifty.
We should wait for the prices to go beyond range for the next expansion phase. There is no trade in the index as far as prices are inside this range.
Now, within this range, prices may go up and down, but until a breakout, there is no clarity on the next move. This is the nature of the market, which we have to accept. Therefore, look to avoid the market till prices settle down or find a new move.
Bank Nifty has made another lifetime high but could not sustain the gains and closed lower. The index opened with a gap up above 22400 and made a new high just below 22500 but then witnessed a steep fall. Prices consolidated in the other half and closed above 22350 with minor gains.
On the daily charts, Bank Nifty has seen a straight line rally that took prices from 21400 to a recent high near 22500 (today). After a rise like this, index tends to consolidate. This seems to be happening in the Bank Nifty. We will see a breakout from this contraction soon but till then traders should wait.
Overall trend remains up in the Bank Nifty but we do not have any view for intraday traders as well. Therefore, actual trades in the Bank Nifty depend on the behaviour of the price movements or market action during the day; trade with lower volumes. But if you feel that there is no sense of momentum then simply step aside and wait for a trading opportunity…
|RECLTD||213||BUY||Intermediate and Short Term Trend is up in RECLTD. The stock had seen a remarkable up move but then confront with some correction. Now, prices are again breaking out. We may see an upside rally here. Buy this stock above 213. If this trade executes then place a stop just below 209.50 and a target at 220.|
|TATAGLOBAL||157||157||Intermediate and Short Term Trend is up in TATAGLOBAL. The stock has seen an upside rally and then started trading narrow inside a range. Prices broke out from narrow range. We may see an upside rally here. Buy this stock above 158. If this trade executes then place a stop just below 154.50 and a target at 165.|
|Stock Name||Strike Price||Buy/Sell||CMP||Initiation||Stop Loss||Target||Remarks|
|LICHSGFIN||MAY FUT||BUY||708||703-704||694||720||OI Increase|
|Long Buildup||Short Buildup|
|Stocks||Price||Price%||OI %||OI||Stocks||Price||Price%||OI %||OI|
|DCBBANK.17.05 May||199.15||7.94||58.03||6507000||UJJIVAN.17.05 May||357||-6.02||29.21||8206800|
|IBULHSGFIN.17.05 May||1067.7||5.6||3.2||15048800||RCOM.17.05 May||33.45||-3.32||5.37||1.02E+08|
|L&TFH.17.05 May||135.2||5.54||6.02||22500000||JPASSOCIAT.17.05 May||13.35||-2.91||1.86||1.71E+08|
|LICHSGFIN.17.05 May||708.75||5.24||17.04||5470300||ASHOKLEY.17.05 May||83.75||-2.73||5.63||71736000|
|DHFL.17.05 May||450.7||4.89||6.47||23635500||MRPL.17.05 May||130.95||-2.71||52.56||1476000|
|Short covering||Long Unwinding|
|ADANIENT.17.05 May||3.69||-10.44||33704000||113.8||BHARATFIN.17.05 May||786||-3||-3.11||23565000|
|HINDPETRO.17.05 May||2.54||-0.22||18949350||553.5||INDIACEM.17.05 May||212||-2.57||-0.49||22043000|
|SIEMENS.17.05 May||1.65||-0.38||789500||1343||ACC.17.05 May||1595.05||-2.38||-4.5||1561600|
|OFSS.17.05 May||1.6||-0.72||207300||3634.05||TATACOMM.17.05 May||716.9||-0.98||-0.3||7710500|
|VOLTAS.17.05 May||0.71||-0.41||7238000||416.5||IDBI.17.05 May||77.9||-0.89||-0.86||39840000|
Top Delivery Percentage
|Stocks||Price||%Chg||Vol||Delivery||Del %||% Change|
|Container Corp of India||1199.6||-1.5||313993||291086||83.93||Nifty 50||9313.8||0.1||76263|
|Petronet LNG Limited||425.6||0.44||1260965||1927397||79.95||Nifty Bank||22341.35||-0.08||76263|
|Hindustan Unilever Ltd||928.1||-0.73||1615376||2837606||79.15||Nifty IT||10006.35||0.63||76263|
|HDFC Ltd.||1584.75||3.1||4472854||2252219||79||INDIA VIX||11.45||5.41||76263|
|Dabur India Ltd.||284.9||-0.65||1042683||1281218||77.83||Nifty Energy||12242.85||-0.17||76263|
|Wipro Ltd||494.9||0.13||1044093||1720916||75.94||Nifty Pharma||10036.35||-0.84||76263|
|TATA CONSULTANCY||2289.9||0.74||1191337||962404||75.76||Nifty Realty||255.65||1.83||76263|
|NTPC Limited||162.1||-1.46||3354986||1921053||75.24||Nifty Infrastructure||3231.2||-0.74||76263|
|Infosys Limited||922.6||0.4||1615488||1875526||74.58||Nifty Auto||10294.75||0.39||76263|
|Cipla Ltd||555.35||-0.38||1380964||639728||73.91||Nifty Metal||2957.35||-0.57||76263|
Upcoming Economic Data
|•Nikkei Service PMI on 05th May, 2017.||•US Service PMI (Apr) on 3rd May, 2017.
•US Crude Oil Inventories data on 3rd May, 2017.
|1.NMDC Ltd has received the green nod for setting up of Rs 1,095 crore iron ore beneficiation plant at Dantewada district, Chhattisgarh. The company wants to set up the unit to produce iron ore concentrate (in slurry form) suitable for making pellets and transport the same through ‘slurry pipeline transporation system’ from Bacheli in Dantewada district to Nagarnar in Bastar district.
2.Coal India has not only missed its production target by 12% during the first month of the current fiscal, it has also witnessed a 4.8% fall over the previous corresponding period. On the sales front, the company managed a 6.1% growth although it missed targets for the month by some 9%.
3. Tata Steel UK has completed the sale of its Specialty Steels business to Liberty House Group for a total consideration of £100 million.
Source: Economics Times, Capitaline Database.
|Company Name||Purpose||Meeting Date||Company Name||Purpose||Meeting Date|
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|CRISIL||Interim Dividend – Rs. – 6.0000||3-May-17||HATSUN||Interim Dividend – Rs. – 3.0000||5-May-17|
|ITDCEM||Dividend – Rs. – 0.3000||3-May-17||HEXAWARE||Interim Dividend – Rs. – 1.0000||5-May-17|
|STOVAC||Final Dividend – Rs. – 31.0000||3-May-17||KKCL||Interim Dividend – Rs. – 7.0000||5-May-17|
|BEARDSELL||Bonus issue 1:5||4-May-17||MISHTANN||Consolidation of Shares||5-May-17|
|BEARDSELL||Stock Split From Rs.10/- to Rs.2/-||4-May-17||TCS||Buy Back of Shares||5-May-17|
|VESUVIUS||Dividend – Rs. – 6.5000||4-May-17||GMBREW||Dividend – Rs. – 3.0000||9-May-17|
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