Daily Morning Outlook – 24 Jan 2017

stock market previewNIFTY: Nifty had an upside day registered in the markets; prices started the session with a gap down below 8350. Index went towards 8325 then found support and bounced back. After that, it was one way road on the up and index closed just below the highs near 8400.

In our previous newsletter, we suggested that the decline which we witnessed earlier was normal because the Nifty has fallen 100 points or about 18% of the up move from the highs. Even a normal correction can witness a 38% retracement of the rally. Thus, 18% pullback remains a minor move in what looks like a robust up trend.

Short and Intermediate trend is sideways in Nifty. Index is inside a trading range with support around 8300 and resistance around 8450. Currently, the Index is making a Bullish Flag pattern on candlestick chart and is at the verge of a breakout from its resistance.

If Nifty can able to cross 8450 resistance successfully, then, we may up for a bull retreat in the very short term. Our bias is still bullish hence traders should look to avoid short selling completely for the time being.

BANK NIFTY: BANK NIFTY had a choppy day in the markets; prices started with a gap down at 18762.90 but rally after that took index above 18900. Prices saw an intraday dip which again took prices near its support area of 18700-18750.

Index bounced back from that level and closed in the upper side of intraday range (190 points) at 18878.25 with a gain of 72 points.

In our previous newsletter, we had mentioned a strong support in the Bank Nifty at 18725 and prices made an intraday low just below that and bounced back. Resistance is visible near 19200. Therefore 18700-19200 is a no trading zone in Bank Nifty.

Traders may witness choppiness inside trading range which could result in taking trades with extra risk. Therefore, swing traders should wait for the prices to close beyond this range for next trading opportunity.

However, we still have a bullish bias in the index; hence intraday traders can look to trade on the long side with lower volumes on dips and consolidation.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
INDUSINDBANK 1234 BUY Intermediate Trend is up in INDUSIND BANK. The stock has seen an upside rally and then started trading range bound. Prices are now at the verge of breakout from its range. We may see higher levels here. Buy this stock above 1236. If this trade executes then place your stop just below 1223 and a target near 1262.
SIEMENS 1155 BUY Intermediate as well as short term trend is up in SIEMENS. The stock has seen an upside move and then started a minor correction. Prices are now finding support near 1150 (its previous resistance level). We may see an upside move here. Buy this stock above 1158. If this trade executes then place your stop just below 1146 and a target near 1188.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
CAIRN INDIA JAN FUT BUY 270.7 CMP 267 276 OI Increase
Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
MCDOWELL-N.17.01 Jan 2212.05 6.18 2.19 2056250 AMARAJABAT.17.01 Jan 866.35 -3.68 6.43 536400
HINDALCO.17.01 Jan 182.15 5.93 7.21 39021500 DIVISLAB.17.01 Jan 688.45 -3.67 8.07 6612000
SAIL.17.01 Jan 61.6 5.75 4.65 37800000 JSWENERGY.17.01 Jan 59.35 -3.18 1.09 37808000
PCJEWELLER.17.01 Jan 388.65 3.97 22.52 1110000 LT.17.01 Jan 1395.5 -1.61 5.28 7407000
ZEEL.17.01 Jan 483.8 3.28 10.45 8353800 INFRATEL.17.01 Jan 348.75 -1.33 7.59 5760000
Long Unwinding
Stocks Price Price% OI OI%
BEML.17.01 Jan 6.77 -8.11 1312800 1241 ICICIBANK.17.01 Jan 257.7 -2.37 -0.76 41720000
JSWSTEEL.17.01 Jan 4.38 -4.2 34188000 194.2 GLENMARK.17.01 Jan 874.95 -1.63 -6.65 2161600
HINDPETRO.17.01 Jan 3.79 -1.75 21308700 510 RCOM.17.01 Jan 30.9 -1.59 -22.61 80472000
RECLTD.17.01 Jan 3.09 -7.76 18750000 141.65 JUSTDIAL.17.01 Jan 352.3 -1.34 -23.55 2719200
BIOCON.17.01 Jan 2.92 -8.72 2442600 1004 TORNTPHARM.17.01 Jan 1280.55 -1.06 -4.9 178400

Top Delivery Percentage

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Kirloskar Cummins Ltd. 837.8 1.37 111833 132951 81.56 Nifty 50 8391.5 0.5 89001
Sun Pharma  Ltd 633.65 -1.23 2955807 2941000 80.11 Nifty Bank 18842.7 0.12 89121
Exide Industries Ltd 194.15 -0.18 1042599 4561569 78.03 Nifty IT 10219.4 0.86 89121
ITC Ltd. 259.65 1.66 10690194 8280798 76.36 Nifty Energy 10449.35 0.41 89121
Infosys Limited 952.7 0.42 3974290 3473135 76.13 Nifty Pharma 10214.15 -0.91 89121
HCL Technologies Ltd. 857.3 2.21 1984508 829564 74.74 Nifty Realty 178.6 0.7 89121
TATA CONSULTANCY 2306.7 0.93 1159273 748200 73.45 Nifty Infrastructure 2828.8 -0.43 89121
Zee Entertain. Enterp.Lt 482.95 3.38 2891303 1435218 72.32 Nifty PSU Bank 3073.3 1.09 89121
MARICO LIMITED 254.85 -0.25 997333 687845 72.22 Nifty Auto 9665 0.67 89121
Wipro Ltd 479.75 0.39 1145339 521837 68.26 Nifty Metal 3013.5 2.74 89121

Upcoming Economic Data

                                      Domestic                                                                                                                            International     
•Union Budget 2017-18 on 1st Feb, 2017.

•RBI Monetary Policy on 08th Feb, 2017

•US Existing Home Sales data (Dec) on 24th Jan, 2017.

Corporate News

•Bharti Airtel is in talks with rival Millicom International Cellular for a possible merger in Ghana, as India’s No. 1 telecom operator, embroiled in a brutal tariff war in its home market, tries to find ways to improve operations in Africa where it has yet to make a profit since entering the continent in 2010.

•Reliance Industries is in talks to raise as much as $2.25 billion (Rs 15,300 crore) in what could be one of the biggest offshore debt issues by an Indian corporate as the energy-to-retail conglomerate seeks to replace existing high-cost borrowings as well as build a war chest for its aggressive expansion strategy in telecom.

•Suven Life Sciences has been granted a patent by Australia for a drug used in the treatment of neuro-degenerative diseases.

•Suzlon Group has bagged orders to supply and install wind turbines totalling 50.40 mw for a Gujarat project

Source: Economic Times, Business Standard

Board Meetings

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
AJANTPHARM Results 24-Jan-17 KAJARIACER Results 24-Jan-17
BHARATFIN Results 24-Jan-17 KTKBANK Results 24-Jan-17
BHARTIARTL Results 24-Jan-17 L&TFH Results 24-Jan-17
BIOCON Results/Others 24-Jan-17 M&MFIN Results 24-Jan-17
CROMPTON Results 24-Jan-17 SOMANYCERA Results/Others 24-Jan-17
HCLTECH Results/Dividend 24-Jan-17 SUPPETRO Results 24-Jan-17
HDFCBANK Results 24-Jan-17 SWARAJENG Results 24-Jan-17
ICICIPRULI Results 24-Jan-17 SYNGENE Results 24-Jan-17
IDBI Results 24-Jan-17 TVSMOTOR Results 24-Jan-17
INOXLEISUR Results 24-Jan-17 WOCKPHARMA Results 24-Jan-17
IOB Results 24-Jan-17 ZEEL Results 24-Jan-17

Corporate Action

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
GOACARBON Interim Dividend – Rs. – 1.5000 24-Jan-17 DBCORP Interim Dividend – Rs. – 4.0000 31-Jan-17
HYDIND Interim Dividend – Rs. – 10.0000 25-Jan-17 PERSISTENT Interim Dividend – Rs. – 6.0000 31-Jan-17
MINDTREE Interim Dividend – Rs. – 2.0000 25-Jan-17 SIEMENS Dividend – Rs. – 6.0000 31-Jan-17
TRIDENT Interim Dividend – Rs. – 0.6000 25-Jan-17 RBL Interim Dividend – Rs. – 6.0000 1-Feb-17
USHDI Stock  Split From Rs.10/- to Rs.1/- 30-Jan-17 KALLAM Stock  Split From Rs.10/- to Rs.2/- 2-Feb-17

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

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