Handsome Recovery in Nifty, Index Finds Support Around 8330
Daily Morning Outlook – 24 Jan 2017
NIFTY: 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.
|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.|
|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|
|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|
|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
|•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.|
|•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
|Company Name||Purpose||Meeting Date||Company Name||Purpose||Meeting Date|
|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|
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