High Drama In Intra-Day Nifty Movements; Index Fails To Support Higher Levels
Market Outlook – 19 April 2017
High Drama In Intra-Day Nifty Movements; Index Fails To Support Higher Levels, Markets May Be Moving Lower Towards 9000; Short Term Traders Should Avoid Index Trading, Focus On Stocks; It Stocks Continue To Weaken, Avoid Bottom Fishing Here.
Yesterday was a narrow range day. This narrow range came after 11 trading days of sideways and choppy movement. When Markets opened higher, there was a sign that the narrow range is breaking on the upside, with the Nifty likely to move above 9200, towards the resistance of 9250.
This did come about. But, what followed was interesting. At higher levels, around 9217, the Nifty faced significant selling, leading to an intraday decline of 112 points, more than 1%.
The Nifty closed at 9108, the lowest close in 13 trading days, about three weeks. At 9108, the Index is touching the lower boundary of 9100 support. This support is now getting threatened with a possible breakdown in the next few days.
The short term trend is probably down. The Nifty has found it difficult to cross the 9250 resistance. It has also found support around 9100-9150. Today’s price action suggests that the 9100 support is likely to give way, leading to a further decline, maybe towards 9000.
The downside correction is not offering a trade. Price action is choppy and volatile – this makes it quite unpredictable..
Bank Nifty had a choppy day with negative bias as prices opened with strength but a sharp intraday decline forced it to close near the lows. It was a tale of two halves in Bank Nifty.
In the first half, index traded above yesterday’s close (making a new lifetime high) but after lunch a sharp decline took prices to intraday low below 21650. It was bears who had the market in control on intraday basis as prices closed near the low with virtually no loss no gain.
On the daily charts, prices were trading narrow and sideways inside 21250-21750 from last three weeks and the range was narrowing. We anticipated a move here in the index. Bank Nifty broke out from that range on upside but failed to hold higher levels and closed back inside the range that suggests weakness.
We do not have any position in the index right now and we would advise traders to avoid trading due to falling momentum and a possibility of a short term correction.
|ASHOKLEY||81||SELL||Intermediate and Short Term Trend is down in ASHOLEY. The stock has seen a decline and then started trading narrow. Prices have broken down its support and closed lower. Sell this stock below 81. If this trade executes then place a stop just above 82 and a target at 79.|
|TATASTEEL||448||SELL||Intermediate and Short Term Trend is now down in TATASTEEL. The stock has been consolidating at the top. Prices have seen a breakdown and closed lower. Sell this stock below 448. If this trade executes then place a stop just above 453 and a target at 435.|
|Stock Name||Strike Price||Buy/Sell||CMP||Initiation||Stop Loss||Target||Remarks|
|JINDALSTEL||APR FUT||SELL||119||CMP||123||112||OI Increase|
|Long Buildup||Short Buildup|
|Stocks||Price||Price%||OI %||OI||Stocks||Price||Price%||OI %||OI|
|ADANIENT.17.04 Apr||144.65||17.13||18.22||23984000||ARVIND.17.04 Apr||386.55||-3.41||11.38||7402000|
|UPL.17.04 Apr||764.1||3.45||0.02||7232400||UBL.17.04 Apr||730||-3.24||7.17||1045800|
|IRB.17.04 Apr||248.65||3.37||9.76||20097500||HEXAWARE.17.04 Apr||200.05||-3.24||0.44||4092000|
|BANKINDIA.17.04 Apr||149.75||2.11||3.47||25908000||TATASTEEL.17.04 Apr||449.5||-3.23||6.71||31700000|
|CESC.17.04 Apr||861.5||1.83||1.1||5764000||GMRINFRA.17.04 Apr||15.7||-3.09||1.67||2.17E+08|
|Short covering||Long Unwinding|
|DCBBANK.17.04 Apr||2.85||-4.96||6894000||178.45||IBREALEST.17.04 Apr||133.15||-9.88||-7.65||21720000|
|JUBLFOOD.17.04 Apr||1.67||-2.89||1964500||1008||HDIL.17.04 Apr||88.25||-5.61||-2.46||27960000|
|AUROPHARMA.17.04 Apr||1.48||-0.35||14753900||665.5||DLF.17.04 Apr||164.55||-5.08||-5.03||37935000|
|OFSS.17.04 Apr||0.54||-0.73||264450||3596.4||JSWSTEEL.17.04 Apr||186.75||-4.3||-1.38||49260000|
|DHFL.17.04 Apr||2.57||-0.55||21231000||400.35||CAPF.17.04 Apr||754||-3.69||-7.56||958400|
Top Delivery Percentage
|Stocks||Price||%Chg||Vol||Delivery||Del %||% Change|
|Shree Cements Ltd.||17687.95||0.22||8823||13157||91.71||Nifty 50||9105.15||-0.37||86484|
|UltraTech Cement Limited||3972.2||-0.69||263758||137131||82.47||Nifty Bank||21671.85||0.11||86427|
|Wipro Ltd||494||0.35||1178496||1175344||80.38||Nifty IT||9981.55||-0.19||86427|
|CASTROL INDIA LTD.||429.1||0.15||619586||347887||77.42||INDIA VIX||12.38||4.12||94497|
|Tata Power Co. Ltd.||83.55||-0.59||4184680||4815767||77.37||Nifty Energy||12031.4||-0.63||86427|
|Pidilite Industries Ltd||712.8||0.08||522988||258993||77.18||Nifty Pharma||10355.8||-0.89||86427|
|United Breweries Limited||731.75||-2.57||258023||119211||76.67||Nifty Realty||237.95||-3.39||86427|
|HDFC Bank Ltd.||1447.3||0.73||909715||1323652||74.18||Nifty Auto||9813.7||-0.77||86427|
|Torrent Pharma Ltd.||1450.3||-0.93||61752||139126||71.13||Nifty Metal||2901.25||-1.76||86427|
|Power Grid Corporation o
Upcoming Economic Data
|•US Crude Oil Inventories on 19th April, 2017.
•US Initial jobless claims on 20th April, 2017.
|•V-Mart Retail has opened a new store in the state of Uttar Pradesh. The store is fashion stores. With this the tally of Uttar Pradesh is 17 composite & 43 fashion stores. This takes the total number of stores to 142 Stores in 122 Cities across 14 states, with 37 Composite Stores & 105 Fashion Stores with a total area of approx. 12.03 lakhs sq. ft
•Net profit of GRUH Finance rose 25.77% to Rs 110.45 crore in the quarter ended March 2017 as against Rs 87.82 crore during the previous quarter ended March 2016. Sales rose 13.41% to Rs 416.11 crore in the quarter ended March 2017 as against Rs 366.91 crore during the previous quarter ended March 2016.
•ABB India has won an order worth around Rs 178 crore, from Power Grid Company of Bangladesh to support the country’s power infrastructure expansion and meet its growing electricity needs
Source: Capitaline Database.
|Company Name||Purpose||Meeting Date||Company Name||Purpose||Meeting Date|
|Company Name||Purpose||Ex-Date||Company Name||Purpose||Ex-Date|
|OFSS||Interim Dividend – Rs. – 170.0000||19-Apr-17||ORIENTPPR||Interim Dividend – Rs. – 0.5000||26-Apr-17|
|FOSECOIND||Final Dividend – Rs. – 7.0000||20-Apr-17||ELANTAS||Dividend – Rs. – 4.5000||27-Apr-17|
|AVANCE||Consolidation of Shares||24-Apr-17||ABB||Dividend – Rs. – 4.0000||28-Apr-17|
|SANOFI||Final Dividend – Rs. – 50.0000||25-Apr-17||ITDCEM||Dividend – Rs. – 0.3000||3-May-17|
|CAIRN||Amalgamation||26-Apr-17||STOVAC||Final Dividend – Rs. – 31.0000||3-May-17|
|CAIRN||Interim Dividend – Rs. – 17.7000||26-Apr-17||VESUVIUS||Dividend – Rs. – 6.5000||4-May-17|
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